National Grid 2008 Annual Report Download - page 651

BOWNE INTEGRATED TYPESETTING SYSTEM
CRC: 13873
Name: NATIONAL GRID
Date: 17-JUN-2008 03:10:51.35Operator: BNY99999TPhone: [phone]Site: BOWNE OF NEW YORK
Y59930.SUB, DocName: EX-15.1, Doc: 16, Page: 124
Description: EXHIBIT 15.1
0/8320.00.00.00Y59930BNY
[E/O] EDGAR 2 *Y59930/320/8*
BOWNE INTEGRATED TYPESETTING SYSTEM
CRC: 13873
Name: NATIONAL GRID
Date: 17-JUN-2008 03:10:51.35Operator: BNY99999TPhone: [phone]Site: BOWNE OF NEW YORK
Y59930.SUB, DocName: EX-15.1, Doc: 16, Page: 124 Description: EXHIBIT 15.1
0/8320.00.00.00Y59930BNY
[E/O] EDGAR 2 *Y59930/320/8*
Table of Contents
132
Notes to the consolidated financial statements continued
National Grid plc
5. Pensions and other post-retirement benefits
Substantially all National Grid’s employees are members of either defined benefit or defined contribution pension plans.
In the UK the principal schemes are the National Grid UK Pension Scheme and the National Grid Electricity Group of the
Electricity Supply Pension Scheme. In the US we have a number of defined benefit and defined contribution pension plans and
we also provide health care and life insurance benefits to eli
g
ible retired US employees. For further details re
g
ardin
g
the nature
and terms of each scheme/plan and the actuarial assumptions used to value the associated assets and pension or other post-
retirement benefit obligations, refer to note 31.
The amounts recognised in the income statement with respect to pensions and other post-retirement benefits are as follows:
The amounts recognised in the statement of recognised income and expense are as follows:
Pensions US other post-retirement benefits
2008 2007 2006 2008 2007 2006
£m £m £m £m £m £m
Defined contribution scheme costs 532
–
–
–
Defined benefit scheme cost
s
Current service cost 125 113 112 21 15 16
Past service cost 5 – – 5 7 6
Curtailment
g
ain on redundancies
(
16
)
(
10
)
(
24
)
(
4
)
–
–
Settlements on redundancies 16
–
–
–
–
–
S
p
ecial termination benefits on redundancies 80 23 45 1
–
–
Curtailment cost – augmentations 3 3 5 – – –
Total in
p
a
y
roll costs
–
continuin
g
218 132 140 23 22 22
Curtailment
g
ain on sale of subsidiar
y
undertakin
g
(
12
)
–
–
–
–
–
Interest cost 912 806 826 89 63 63
Ex
p
ected return on
p
lan assets
(
1,014
)
(
885
)
(
860
)
(
50
)
(
41
)
(
41
)
Total in finance costs
–
continuin
g
(
102
)
(
79
)
(
34
)
39 22 22
Current service costs 2271
–
–
Interest cost
–
22
–
–
–
Ex
p
ected return on
p
lan assets
–
(
2
)
(
2
)
–
–
–
Curtailment/settlement gain on sale of distribution
networks
–
–
(
168
)
–
–
–
Total in discontinued operations 2 2 (161) 1 – –
Pensions US other post-retirement benefits
2008 2007 2006 2008 2007 2006
£m £m £m £m £m £m
Actuarial net
g
ain/
(
loss
)
durin
g
the
y
ear 497 357 197
(
65
)
8
(
16
)
Exchange differences 3 40 (30) 3 75 (51)
Total reco
g
nised for the
y
ear 500 397 167
(
62
)
83
(
67
)
Cumulative actuarial
g
ain/
(
loss
)
1,322 825 468
(
91
)
(
26
)
(
34
)