BT 2005 Annual Report Download - page 102

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28. Pension costs continued
On the basis of the above assumptions and in compliance with FRS 17 the amounts that would have been charged to
the consolidated profit and loss account and the statement of total recognised gains and losses for the year ended
31 March 2005 would be as follows:
2005
£m
2004
£m
Analysis of amounts that would be charged to operating profit on an FRS 17 basis
Current service cost 540 438
Past service cost –1
Total operating charge 540 439
Amount that would be charged (credited) to net interest payable on an FRS 17 basis
Expected return on pension scheme assets (1,918) (1,560)
Interest on pension scheme liabilities 1,720 1,615
Net finance (income) expense (198) 55
Amount that would be charged to profit before taxation on an FRS 17 basis 342 494
Analysis of the amount that would be recognised in the consolidated statement of total recognised
gains and losses on an FRS 17 basis
Actual return less expected return on pension scheme assets 1,664 4,130
Experience losses arising on pension scheme liabilities (437) (290)
Changes in assumptions underlying the present value of the pension scheme liabilities (933) (500)
Actuarial gain recognised 294 3,340
The net pension cost of £342 million for the year ended 31 March 2005 (2004 – £494 million) under FRS 17 is
£123 million lower (2004 – £90 million higher) than the profit and loss charge recognised under SSAP 24.
The movements in the net pension liability, on an FRS 17 basis, during the year were:
2005
£m
2004
£m
Deficit at 1 April 5,136 9,033
Current service cost 540 438
Contributions (413) (1,051)
Past service costs –1
Other finance (income) expense (198) 55
Acquisitions 10 –
Actuarial gain recognised (294) (3,340)
Deficit at 31 March 4,781 5,136
Net pension liability, post tax, at 31 March 3,347 3,595
The history of experience gains (losses) which would have been recognised under FRS 17 were:
2005 2004 2003
Difference between expected and actual return on scheme assets:
Amount (£m) 1,664 4,130 (6,995)
Percentage of scheme assets 5.6% 15.4% 32.5%
Experience gains and losses on scheme liabilities:
Amount (£m) (437) (290) 1,056
Percentage of the present value of scheme liabilities 1.3% 0.9% 3.5%
Total amount recognised in statement of total recognised gains and losses:
Amount (£m) 294 3,340 (7,599)
Percentage of the present value of scheme liabilities 0.9% 10.4% 24.9%
Notes to the financial statements BT Group plc Annual Report and Form 20-F 2005 101