Aviva 2006 Annual Report Download - page 187

Overview Business review Governance Financial statements Other information
Aviva plc
Annual Report and Accounts 2006 183
42 – Pension obligations continued
The total pension expense for these schemes comprises:
2006 2005
£m £m
Current service cost 196 158
Past service cost/(credit) 3(7)
(Gain)/loss on curtailments (39)* (21)
Total pension cost 160 130
Charged to net operating expenses 196 130
Included in profit on disposal of subsidiaries and associates (36)*–
Total pension cost as above 160 130
Expected return on scheme assets (530) (439)
Less: Income accounted for elsewhere (see above) 40 –
(490) (439)
Interest charge on scheme liabilities 453 407
Credit to investment income (37) (32)
Total charge to income 123 98
Expected return on scheme assets 530 439
Actual return on these assets (800) (1,270)
Actuarial (gains) on scheme assets (270) (831)
Less: Gains accounted for elsewhere (see above) 19 –
(251) (831)
Experience (gains)/losses arising on scheme liabilities (63) 86
Changes in assumptions underlying the present value of the scheme liabilities 430 1,292
Loss on acquisitions 1–
Actuarial losses on the pension schemes 117 547
Less: Recoveries from unallocated divisible surplus and other movements (3) –
Actuarial losses recognised in the statement of recognised income and expense 114 547
*The current year credit mainly arises in the UK as a result of the remeasurement of pension liabilities in the RAC plc defined benefit scheme, following the MSS and
LVL disposals (see note 3(b)).
The cumulative amount of actuarial gains and losses on the pension schemes recognised in the statement of recognised income and
expenses since 1 January 2004 (the date of transition to IFRS) is a loss of £809 million at 31 December 2006 (2005: loss of £692 million).
(iv) Experience gains and losses
The following disclosures of experience gains and losses will be built up over time to give a five year history.These arebased on the
assets recorded in the schemes, beforeGroup consolidation adjustments to remove insurance policies with Group companies and
income on the assets underlying them.
2006 2005 2004
£m %£m %£m %
Fair value of scheme assets at the end of the year 9,223 8,209 6,286
Present value of scheme liabilities at the end of the year (10,196) (9,680) (7,179)
Deficits in the schemes (973) (1,471) (893)
Difference between the expected and actual return
on scheme assets
Amount of (gains)/losses (270) (831) (205)
Percentage of the scheme assets at the end of the year 2.9% 10.1% 3.3%
Experience (gains)/losses on scheme liabilities
(excluding changes in assumptions)
Amount of (gains)/losses (63) 86 (12)
Percentage of the present value of scheme liabilities 0.6% 0.9% 0.2%