Aviva 2013 Annual Report Download - page 206

Aviva plc
Annual report and accounts 2013
204
Notes to the consolidated financial statements continued
49 – Pension obligations continued
The number of scheme members was as follows:
United Kingdom Ireland Canada
2013
Number
2012
Number
2013
Number
2012
Number
2013
Number
2012
Number
Active members — — — 791 — —
Deferred members 56,009 56,825 2,017 1,246 919 1,022
Pensioners 30,945 30,647 747 723 1,364 1,344
Total members 86,954 87,472 2,764 2,760 2,283 2,366
As noted in section (ii) below, the final salary section of the Irish scheme was closed to future accrual with effect from 30 April
2013. The final salary sections of the UK and Canadian schemes were closed to future accrual in 2011. Closure of the schemes has
removed the volatility associated with additional future accrual for active members.
(i) UK schemes
In the UK, the Group operates two main pension schemes, the Aviva Staff Pension Scheme (ASPS) and the smaller RAC (2003)
Pension Scheme which was retained after the sale of RAC Limited in September 2011. As the defined benefit section of both UK
schemes is now closed to both new members and future accrual, existing deferred members and new entrants participate in the
defined contribution section of the ASPS. Both schemes operate within the UK pensions’ regulatory framework.
(ii) Other schemes
Following formal consultation, the Group confirmed its decision to close the final salary section of the Irish scheme with effect
from 30 April 2013, in addition to making amendments to future pension increases and breaking the link to final salary. The
consequential reduction in the liabilities, arising from the plan amendments to future pension increases and the break to final
salary has resulted in a negative past service cost (a gain) of £145 million. The Irish scheme is regulated by the Irish Pensions Board.
In Canada, although future accruals ceased with effect from 31 December 2011, the defined benefit components continue to
reflect future increases in salary as benefits are based on a member’s best average earnings at a future date. The main Canadian
plan is a Registered Pension Plan in Canada and as such is registered with the Canada Revenue Agency and Financial Services
Commission of Ontario and is required to comply with the Income Tax of Canada and the various provincial Pension Acts
within Canada.
(b) IAS 19 disclosures
Disclosures under IAS 19 for the material defined benefit schemes in the UK, Ireland and Canada, are given below. Where schemes
provide both defined benefit and defined contribution pensions, the assets and liabilities shown exclude those relating to defined
contribution pensions.
(i) Movements in the scheme deficits and surpluses
Movements in the pension schemes’ surpluses and deficits comprise:
2013
Fair Value of
Scheme
Assets
£m
Present
Value of
defined
benefit
obligation
£m
IAS 19
Pensions net
surplus
£m
Net surplus in the schemes at 1 January 12,281 (11,675) 606
Current service costs — (4) (4)
Past service costs
–
amendments1 — 142 142
Past service costs
–
curtailment gain — 5 5
Administrative expenses2 — (18) (18)
Total pension cost charged to net operating expenses — 125 125
Net interest credited/(charged) to investment income/(finance costs)3 543 (506) 37
Total recognised in income statement from continuing operations 543 (381) 162
Remeasurements:
Actual return on these assets 366 — 366
Less: Interest income on scheme assets (543) — (543)
Return on scheme assets excluding amounts in interest income (177) — (177)
Losses from change in financial assumptions — (730) (730)
Gains from change in demographic assumptions — 186 186
Experience gains — 47 47
Total remeasurements recognised in other comprehensive income from continuing operations (177) (497) (674)
Employer contributions 149 — 149
Employee contributions 1 (1) —
Benefits paid (371) 371 —
Administrative expenses paid from scheme assets2 (18) 18 —
Foreign exchange rate movements (10) 6 (4)
Net surplus in the scheme at 31 December 12,398 (12,159) 239
1 Includes £145 million gain relating to plan amendments to the Irish pension scheme.
2 Administrative expenses are expensed as incurred.
3 Net interest income of £57 million has been credited to investment income and net interest expense of £20 million has been charged to finance costs (see Note 8).
4 Total recognised in income from discontinued operations is £nil and total remeasurements recognised in other comprehensive income from discontinued operations is £nil.