Aviva 2002 Annual Report Download - page 100

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45 – Pension and other post-retirement benefit costs continued
(ii) The expected rates of return on the schemes’ assets are:
UK Netherlands Canada Ireland
2003 2002 2003 2002 2003 2002 2003 2002
%%%%%%%%
Equities 8.25% 8.0% 8.5% 8.1% 8.5% 9.1% 8.5% 8.3%
Bonds 4.9% 5.0% 4.7% 5.1% 5.4% 6.1% 4.8% 5.3%
Property 6.0% 6.5% n/a n/a n/a n/a 6.3% 6.8%
(iii) The pension expense for these schemes on an FRS17 basis comprises:
Total
2002
£m
Current service cost 137
Past service cost 1
Charge to net operating expenses 138
Expected return on pension scheme assets (402)
Interest on pension scheme liabilities 319
(Credit) to investment income (83)
Total charge that would be made to profit on ordinary activities before tax in respect of these schemes under FRS17 55
Expected return on pension scheme assets less actual return 1,139
Experience gains and losses arising on scheme liabilities (131)
Changes in assumptions underlying the present value of the scheme liabilities 41
Increase in recoverable surplus (17)
Actuarial loss that would be recognised in the statement of total recognised gains and losses under FRS17 1,032
(iv) The following disclosures of experience gains and losses will be built up over time to give a five year history:
2002 2002
£m %
Difference between the expected and actual return on scheme assets
Amount 1,139
Percentage of the scheme assets at the end of the year 23.4%
Experience gains and losses on scheme liabilities
Amount 131
Percentage of the present value of scheme liabilities 2.4%
Total amount recognised in the statement of total recognised gains and losses
Amount 1,032
Percentage of the present value of scheme liabilities 18.7%
(v) The assets and liabilities of the schemes, attributable to defined benefit members, at 31 December 2002 were:
UK Netherlands Canada Ireland Total
2002 2001 2002 2001 2002 2001 2002 2001 2002 2001
£m £m £m £m £m £m £m £m £m £m
Equities 2,678 3,281 141 169 72 69 187 230 3,078 3,749
Bonds 880 957 338 271 68 79 68 73 1,354 1,380
Property 309 313 –––– 26 28 335 341
Other 83 159 73–17 17 91 186
Total market value
of assets 3,950 4,710 486 443 140 165 282 338 4,858 5,656
Present value of
scheme liabilities (4,538) (4,518) (533) (430) (156) (145) (285) (229) (5,512) (5,322)
(Deficit)/surplus in
the schemes (588) 192 (47) 13 (16) 20 (3) 109 (654) 334
Surplus not possible
to recognise –––––– –(17) –(17)
Recognised pension
(liability)/asset (588) 192 (47) 13 (16) 20 (3) 92 (654) 317
Related deferred tax
asset/(liability) 176 (58) 16 (3) 6(8) –(15) 198 (84)
Net pension (liability)/asset (412) 134 (31) 10 (10) 12 (3) 77 (456) 233
Notes to the accounts continued
86 Aviva plc
Annual report + accounts 2002