BT 2001 Annual Report Download - page 129

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VII Pension costs (continued)
The information required to be disclosed in accordance with SFAS No. 132 concerning the funded status of the main scheme at 31 March
2000 and 31 March 2001, based on the valuations at 1 January 2000 and 1 January 2001, respectively, is given below.
2001
£m
2000
£m
Changes in benefit obligation
Benefit obligation at the beginning of the year 31,024 27,158
Service cost 580 498
Interest cost 1,673 1,459
Employees’ contributions 183 171
Additional cost of termination benefits 349 263
Actuarial movement (a) (1,342) 2,992
Other changes 31 21
Benefits paid or payable (1,314) (1,538)
Benefit obligation at the end of the year 31,184 31,024
2001
£m
2000
£m
Changes in scheme assets
Fair value of scheme assets at the beginning of the year 29,876 25,120
Actual return on scheme assets (350) 5,619
Employers’ contributions (b) 605 483
Employees’ contributions 183 171
Other changes 31 21
Benefits paid or payable (1,314) (1,538)
Fair value of scheme assets at the end of the year 29,031 29,876
2001
£m
2000
£m
Funded status under US GAAP
Projected benefit obligation in excess of scheme assets (2,153) (1,148)
Unrecognised net obligation at date of initial application of SFAS No. 87 (c) 106 158
Unrecognised prior service costs (d) 151 175
Other unrecognised net actuarial gains (1,181) (2,001)
Accrued pension costs under US GAAP (3,077) (2,816)
(a) In the year ended 31 March 2000, the actuarial movement is significant mainly due to revised mortality assumptions being employed in the year.
(b) The employers’ contributions for the year ended 31 March 2001 includes special contributions of £200 million paid on 21 December 2000 and £100 million paid on
30 March 2001 (2000 – £230 million, paid 31 March 2000).
(c) The unrecognised net obligation at the date of initial application is being amortised over 15 years from 1 April 1988.
(d) Unrecognised prior service costs on scheme benefit improvements, are being amortised over periods of 15 or 16 years commencing in the years of the
introduction of the improvements.
The bene¢t obligation for the main pension scheme was determined using the following assumptions at 1 January 2000 and
1 January 2001:
2001
per annum
%
2000
per annum
%
Discount rate 5.7 5.5
Rate of future pay increases 4.8 4.8
The determination also took into account requirements in the scheme as to future pension increases.
BT Annual report and Form 20-F 129