Experian 2009 Annual Report Download - page 126

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124 Experian Annual Report 2009
28. Retirement benet assets/obligations
The Group operates both dened benet and dened contribution plans in a number of countries and provides post-retirement
healthcare benets to certain former employees. A dened benet plan is a pension plan that denes an amount of pension
benet that an employee will receive on retirement, usually dependent on one or more factors such as age, years of service
and compensation. A dened contribution plan is a pension plan that denes the amount of contributions that are paid by the
Group into an independently administered fund.
Pension arrangements for the Group’s UK employees are operated principally through the Experian Pension Scheme which
is a dened benet plan and the Experian Money Purchase Pension Plan which is a dened contribution plan. These plans
are governed by trust deeds which ensure that their nances and governance are independent from those of the Group. In
North and Latin America, benets are determined in accordance with local practice and regulations and funding is provided
accordingly. There are no other material pension arrangements.
The Experian Pension Scheme has rules which specify the benets to be paid and is nanced accordingly with assets being
held in independently administered funds. A full actuarial funding valuation of this plan is carried out every three years with
interim reviews in the intervening years. The latest full valuation was carried out as at 31 March 2007 by independent, qualied
actuaries, Watson Wyatt Limited, using the projected unit credit method. Under this method of valuation the current service
cost will increase as members approach retirement due to the ageing active membership of the plan. There was a surplus at the
date of the latest full actuarial valuation and accordingly no decit repayment contributions are currently required. The next full
valuation will be carried out as at 31 March 2010.
The disclosures required by IAS 19, which relate to the Group’s UK dened benet pension arrangements only, are as follows:
Amounts recognised in the Group balance sheet
2009 2008
Retirement benet (obligations)/assets – funded plans US$m US$m
Market value of funded plans’ assets 595 1,045
Present value of funded plans’ liabilities (614) (863)
Decit in the funded plans (19)
Surplus in the funded plans 182
Retirement benet obligations – unfunded plans
Present value of unfunded pension arrangements (26) (35)
Liability for post-retirement healthcare (13) (15)
Retirement benet obligations (39) (50)
Net retirement benet (obligations)/assets (58) 132
The Group’s retirement benet assets and obligations are denominated primarily in sterling.
The Group has in place arrangements which secure unfunded pension benet arrangements for certain directors and senior
managers by granting charges to an independent trustee over independently managed portfolios of marketable securities
owned by the Group. The amount of assets charged in this way is adjusted annually to keep the ratio of assets charged to the
discounted value of the accrued benets secured in this way as close as possible to the corresponding ratio in the Experian
Pension Scheme. The total value of the assets charged in this way at 31 March 2009 was US$22m (2008: US$34m). Further
details of the unfunded pension arrangements for directors appear in the report on directors’ remuneration.
Amounts recognised in the Group prot and loss account reserve
2009 2008
US$m US$m
Current service cost 13 20
Curtailment gain (3) (8)
Interest on plans’ liabilities 52 53
Expected return on plans’ assets (69) (76)
Total credit to Group income statement (7) (11)
Actuarial losses/(gains) recognised in Group statement of recognised income and expense 202 (15)
Total charge/(credit) to Group prot and loss account reserve 195 (26)
The curtailment gain of US$3m (2008: US$8m) arose principally from the restructuring of continuing businesses in the UK.
Notes to the Group nancial statements continued
Financial statements