Barclays 2010 Annual Report Download - page 231

28 Retirement benefit obligations continued
– The 1964 Pension Scheme: most employees recruited before July 1997 built up benefits in this non-contributory defined benefit scheme in respect
of service up to 31st March 2010. Pensions were calculated by reference to service and pensionable salary.
– The Pension Investment Plan (PIP): a defined contribution plan created from 1st July 2001 to provide benefits for employees of Barclays Capital.
The costs of ill-health retirements and death in service benefits are generally borne by the UKRF.
Governance
The UKRF operates under trust law and is managed and administered on behalf of the members in accordance with the terms of the Trust Deed and
Rules and all relevant legislation. The Corporate Trustee is Barclays Pension Funds Trustees Limited (BPFTL), a private limited company incorporated
on 20th December 1990 and a wholly owned subsidiary of Barclays Bank PLC. The Trustee is the legal owner of the assets of the UKRF which are held
separately from the assets of the Group.
The Trustee Board comprises six Management Directors selected by Barclays, of whom three are independent Directors with no relationship with
Barclays or the UKRF, plus three Member Nominated Directors. Member Nominated Directors are selected from those eligible active staff and pensioner
members who apply to be considered for the role.
The same principles of pension governance apply to the Group’s other pension schemes, although different legislation covers overseas schemes where,
in most cases, the Group has the power to determine the funding rate.
The following tables present an analysis of: defined benefit obligations, the fair value of plan assets and the amounts recognised in the income
statement for all Group pension schemes and unfunded post-retirement benefits.
2010 2009
Post-retirement Post-retirement
Pensions benefits Total Pensions benefits Total
UK
£m
Overseas
£m
UK
£m
Overseas
£m £m
UK
£m
Overseas
£m
UK
£m
Overseas
£m £m
Benefit obligation at beginning
of the year (19,209) (1,277) (65) (95) (20,646) (14,395) (1,220) (43) (125) (15,783)
Current service cost (293) (50) – (6) (349) (254) (27) (1) (9) (291)
Interest cost (1,049) (88) (3) (6) (1,146) (941) (51) (3) (6) (1,001)
Past service cost 240 (2) – – 238 (1) – – – (1)
Curtailments or settlements (16) 6 – – (10) 482 (7) – 1 476
Actuarial (loss)/gain (522) (64) (2) (2) (590) (4,757) (33) (3) 7 (4,786)
Contributions by plan participants (2) (7) – – (9) (2) (5) – – (7)
Benefits paid 678 94 1 6 779 659 58 1 6 724
Business disposals – 2 – – 2 – 9 – 6 15
Exchange and other adjustments – (84) 17 (3) (70) – (1) (16) 25 8
Benefit obligation at end of the
year (20,173) (1,470) (52) (106) (21,801) (19,209) (1,277) (65) (95) (20,646)
Fair value of plan assets at
beginning of the year 15,675 1,025 – – 16,700 13,537 959 – – 14,496
Expected return on plan assets 1,031 91 – – 1,122 904 31 – – 935
Employer contribution 666 55 1 6 728 525 76 1 6 608
Settlements – (2) – – (2) – (2) – – (2)
Contributions by plan participants 2 7 – – 9 2 5 – – 7
Actuarial gain/(loss) 995 17 – – 1,012 1,424 (8) – – 1,416
Benefits paid (678) (94) (1) (6) (779) (659) (58) (1) (6) (724)
Business disposals – – – – – – (6) – – (6)
Exchange and other adjustments (70) 185 – – 115 (58) 28 – – (30)
Fair value of plan assets at the
end of the year 17,621 1,284 – – 18,905 15,675 1,025 – – 16,700
Net deficit (2,552) (186) (52) (106) (2,896) (3,534) (252) (65) (95) (3,946)
Unrecognised actuarial losses/
(gains) 2,501 150 (6) 12 2,657 3,087 158 (7) 10 3,248
Net recognised liability (51) (36) (58) (94) (239) (447) (94) (72) (85) (698)
Recognised assetsa – 126 – – 126 – 71 – – 71
Recognised liability (51) (162) (58) (94) (365) (447) (165) (72) (85) (769)
Net recognised liability (51) (36) (58) (94) (239) (447) (94) (72) (85) (698)
Note
a Included within other assets.
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