Barclays 2011 Annual Report Download - page 267

39 Pensions and post retirement benefits continued
Actuarial gains and losses
The actuarial gains and losses arising on scheme obligations and scheme assets are as follows:
Total actuarial gains and losses 2011
£m
2010
£m
2009
£m
2008
£m
2007
£m
Present value of obligations (22,994) (21,801) (20,646) (15,783) (17,634)
Fair value of scheme assets 22,748 18,905 16,700 14,496 18,027
Net (deficit)/surplus in the schemes (246) (2,896) (3,946) (1,287) 393
Experience (losses) and gains on scheme liabilities
– amount (57) (216) 62 (177) (376)
– as percentage of scheme liabilities –(1%) – (1%) (2%)
Difference between actual and expected return on scheme assets
– amount 1,419 1,012 1,416 (4,655) (343)
– as percentage of scheme assets 6% 5% 8% (32%) (2%)
Actuarial gains and losses relating to UKRF 2011
£m
2010
£m
2009
£m
2008
£m
2007
£m
Present value of obligations (21,263) (20,173) (19,209) (14,395) (16,563)
Fair value of scheme assets 21,540 17,621 15,675 13,537 17,231
Net surplus/(deficit) in the scheme 277 (2,552) (3,534) (858) 668
Experience (losses) and gains on scheme liabilities
– amount (34) (207) 106 88 –
– as percentage of scheme liabilities –(1%) 1% 1% –
Difference between actual and expected return on scheme assets
– amount 1,470 995 1,424 (4,534) 332
– as percentage of scheme assets 7% 6% 9% (33%) 2%
Funding
The latest triennial funding valuation of the UKRF was carried out with an effective date of 30 September 2010, and showed a deficit of £5.0bn. In
compliance with the Pensions Act 2004, the Bank and Trustee agreed a scheme-specific funding target, statement of funding principles, a schedule of
contributions and a recovery plan to eliminate the deficit in the Fund.
The recovery plan to eliminate the deficit will result in the Bank paying deficit contributions to the Fund until 2021. Deficit contributions of £1.8bn were
paid to the fund in December 2011 and a further £0.5bn will be paid in 2012. Further deficit contributions are payable from 2017 to 2021 starting at
£0.65bn in 2017 and increasing by approximately 3.5% per annum until 2021. These deficit contributions are in addition to the regular contributions to
meet the Group’s share of the cost of benefits accruing over each year. Including deficit contributions, the Group’s estimated contribution to the UKRF in
2012 will be £877m. Excluding the UKRF, the Group is expected to pay contributions of approximately £1m to UK schemes and £94m to overseas
schemes in 2012.
The Scheme Actuary prepares an annual update of the funding position as at 30 September. The latest annual update was carried out as at 30
September 2011 and showed a deficit of £6.4bn. This was prior to the payment of £1.8bn in December 2011.
Contributions paid with respect to the UKRF were as follows:
Contributions paid £m
2011 2,128
2010 666
2009 525
Barclays PLC Annual Report 2011 www.barclays.com/annualreport 265
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