Vodafone 2008 Annual Report Download - page 124

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25. Post employment benefits continued
Fair value of the assets and present value of the liabilities of the schemes
The amount included in the balance sheet arising from the Group’s obligations in respect of its defined benefit schemes is as follows:
2008 2007 2006
£m £m £m
Movement in pension assets:
1 April 1,251 1,123 874
Reclassification as held for sale − − (3)
Expected return on pension assets 89 73 57
Actuarial (losses)/gains (176) 26 121
Employer cash contributions 86 55 85
Member cash contributions 13 13 11
Benefits paid (42) (32) (27)
Exchange rate movements 50 (7) 5
31 March 1,271 1,251 1,123
Movement in pension liabilities:
1 April 1,292 1,224 998
Reclassification as held for sale − − (31)
Current service cost 53 74 57
Interest cost 69 61 52
Member cash contributions 13 13 11
Actuarial (gains)/losses (129) (39) 164
Benefits paid (42) (32) (27)
Other movements (6) 4 (8)
Exchange rate movements 60 (13) 8
31 March 1,310 1,292 1,224
An analysis of net assets/(deficits) is provided below for the Group’s principal defined benefit pension scheme in the UK and for the Group as a whole.
UK Group
2008 2007 2006 2005 2008 2007 2006 2005
£m £m £m £m £m £m £m £m
Analysis of net assets/(deficits):
Total fair value of scheme assets 934 954 835 628 1,271 1,251 1,123 874
Present value of funded scheme liabilities (902) (901) (847) (619) (1,217) (1,194) (1,128) (918)
Net assets/(deficits) for funded schemes 32 53 (12) 9 54 57 (5) (44)
Present value of unfunded scheme liabilities − − − − (93) (98) (96) (80)
Net assets/(deficits) 32 53 (12) 9 (39) (41) (101) (124)
Net assets/(deficits) are analysed as:
Assets 32 53 − 9 65 82 19 12
Liabilities − − (12) − (104) (123) (120) (136)
It is expected that contributions of £82 million will be paid into the Group’s defined benefit retirement schemes during the year ending 31 March 2009.
Actual return on pension assets
2008 2007 2006
£m £m £m
Actual return on pension assets (87) 99 178
Analysis of pension assets at 31 March is as follows: % % %
Equities 68.5 72.1 71.9
Bonds 17.7 27.5 26.5
Property 0.3 0.4 0.4
Other 13.5 − 1.2
100.0 100.0 100.0
The schemes have no direct investments in the Group’s equity securities or in property currently used by the Group.
History of experience adjustments
2008 2007 2006 2005
£m £m £m £m
Experience adjustments on pension liabilities:
Amount (5) (2) (4) (60)
Percentage of pension liabilities − − − 6%
Experience adjustments on pension assets:
Amount (176) 26 121 24
Percentage of pension assets (14%) 2% 11% 3%
122 Vodafone Group Plc Annual Report 2008
Notes to the Consolidated Financial Statements continued
Vodafone – Financials