Holiday Inn 2005 Annual Report Download - page 63

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23 EMPLOYEE BENEFITS
Retirement and death in service benefits are provided for eligible Group employees in the UK principally by the InterContinental Hotels UK
Pension Plan. The plan covers approximately 400 employees, of which 240 are in the defined benefit section and 160 are in the defined
contribution section. The assets of the plan are held in self-administered trust funds separate from the Group’s assets. The Group also
maintains a US-based InterContinental Hotels Pension Plan and post-employment benefits scheme. This plan is now closed to new
members and pensionable service no longer accrues for current employee members. In addition, the Group operates a number of minor
pension schemes outside the UK, the most significant of which is a defined contribution scheme in the US; there is no material difference
between the pension costs of, and contributions to, those schemes.
On 14 December 2005, the Soft Drinks business, including the Britvic Pension Plan, was sold. The information provided below includes
movements for the Britvic Pension Plan up to the date of disposal, at which point they have been removed.
The amounts recognised in the income statement are:
Pension plans Post-employment
UK US benefits Total
2005 2004 2005 2004 2005 2004 2005 2004
Recognised in administrative expenses £m £m £m £m £m £m £m £m
Current service cost 19 18 ––––19 18
Past service cost –1–––––1
Interest cost on benefit obligation 30 27 651137 33
Expected return on plan assets (32) (27) (5) (4) ––(37) (31)
17 19 111119 21
Recognised in other operating income and expense
Plan curtailment (7)–––––(7)–
The curtailment gain arose as a result of the sale of 73 UK hotel properties.
The amounts recognised in the Group statement of recognised income and expense are:
Pension plans Post-employment
UK US benefits Total
2005 2004 2005 2004 2005 2004 2005 2004
Actuarial gains and losses £m £m £m £m £m £m £m £m
Actual return on scheme assets 79 41 45––83 46
Less: expected return on scheme assets (32) (27) (5) (4) ––(37) (31)
47 14 (1) 1––46 15
Other actuarial gains and losses (67) (60) (3) (5) 1(1) (69) (66)
(20) (46) (4) (4) 1(1) (23) (51)
Deficit transferred in respect
of previous acquisition – (6) –––––(6)
The assets and liabilities of the schemes are:
Pension plans Post-employment
UK US benefits Total
2005 2004 2005 2004 2005 2004 2005 2004
£m £m £m £m £m £m £m £m
Fair value of scheme assets 250 470 62 56 ––312 526
Present value of benefit obligations (274) (600) (103) (88) (11) (11) (388) (699)
Employee benefits liability – non-current (24) (130) (41) (32) (11) (11) (76) (173)
InterContinental Hotels Group 2005 61