Holiday Inn 2009 Annual Report Download - page 98

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96 IHG Annual Report and Financial Statements 2009
25 Retirement benefits continued
Pension plans Post-employment
UK US and other benefits Total
2009 2008 2009 2008 2009 2008 2009 2008
Movement in benefit obligation $m $m $m $m $m $m $m $m
Benefit obligation at beginning of year 411 597 185 184 19 20 615 801
Current service cost 7911––810
Members’ contributions 11––––11
Interest expense 22 30 10 10 1133 41
Benefits paid (12) (12) (13) (12) (1) (1) (26) (25)
Enhanced pension transfer (59) –––––(59) –
Reclassification* –––5–––5
Actuarial loss/(gain) arising in the year 44 (55) 13 (3) 1(1) 58 (59)
Exchange adjustments 47 (159) 1–––48 (159)
Benefit obligation at end of year 461 411 197 185 20 19 678 615
Comprising:
Funded plans 414 377 151 141 ––565 518
Unfunded plans 47 34 46 44 20 19 113 97
461 411 197 185 20 19 678 615
* Relates to the recognition of the gross assets and obligations of the Netherlands pension scheme.
Pension plans Post-employment
UK US and other benefits Total
2009 2008 2009 2008 2009 2008 2009 2008
Movement in plan assets $m $m $m $m $m $m $m $m
Fair value of plan assets at beginning of year 437 611 112 144 ––549 755
Company contributions 16 30 431121 34
Members’ contributions 11––––11
Benefits paid (12) (12) (13) (12) (1) (1) (26) (25)
Enhanced pension transfer (70) –––––(70) –
Reclassification* –––4–––4
Expected return on plan assets 21 32 811 ––29 43
Actuarial (loss)/gain arising in the year (14) (57) 14 (38) –––(95)
Exchange adjustments 47 (168) 1–––48 (168)
Fair value of plan assets at end of year 426 437 126 112 ––552 549
* Relates to the recognition of the gross assets and obligations of the Netherlands pension scheme.
The most recent actuarial valuation of the InterContinental Hotels UK Pension Plan was carried out as at 31 March 2006 and showed a
deficit of £81m on a funding basis. Under the recovery plan agreed with the trustees at that time, the Group aims to eliminate this deficit
by March 2014 through additional Company contributions and projected investment returns. Of the agreed contributions of £40m, three
payments of £10m were made in prior years and the final commitment of £10m was met through the funding of the enhanced pension
transfer arrangements detailed above. The next actuarial valuation due as at 31 March 2009 is currently in progress.
Company contributions are expected to be $13m in 2010.
Notes to the Group financial statements continued