BT 2007 Annual Report Download - page 119

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29. RETIREMENT BENEFIT PLANS continued
Amounts recognised in respect of defined benefit schemes
The net pension obligation is set out below:
2007 2006
Assets
Present value
of liabilities Deficit Assets
Present value
of liabilities Deficit
£m £m £m £m £m £m
BTPS 38,287 38,580 293 35,550 38,005 2,455
Other schemes 103 199 96 90 182 92
38,390 38,779 389 35,640 38,187 2,547
Deferred tax asset at 30% (117) (764)
Net pension obligation 272 1,783
Amounts recognised in the income statement on the basis of the above assumptions in respect of pension obligations are as follows:
2007 2006 2005
£m £m £m
Current service cost (including defined contribution schemes) 643 603 540
Total operating charge 643 603 540
Expected return on pension scheme assets (2,292) (2,070) (1,918)
Interest on pension scheme liabilities 1,872 1,816 1,720
Net finance income (420) (254) (198)
Total amount charged to the income statement 223 349 342
An analysis of actuarial gains and losses and the actual return on plan assets is shown below:
2007 2006 2005
£m £m £m
Actuarial gains and losses recognised in the year 1,409 2,122 294
Cumulative actuarial gains and losses 3,825 2,416 294
Actual return on plan assets 3,285 6,925 3,582
Changes in the present value of the defined benefit pension obligation are as follows:
2007 2006
£m £m
Opening defined benefit pension obligation (38,187) (34,435)
Service cost (600) (568)
Interest cost (1,872) (1,816)
Contributions by employees (18) (21)
Actuarial gain (loss) 416 (2,733)
Benefits paid 1,477 1,385
Exchange differences 51
Closing defined benefit pension obligation (38,779) (38,187)
The present value of the obligation is derived from long term cash flow projections and is thus inherently uncertain. The benefits
payable by the BTPS are expected to be paid as follows:
Forecast benefits payable by the BTPS at 31 March 2007
£ billion
4.00
3.00
2.00
1.00
0.00
2007
2015
2023
2031
2039
2047
2055
2063
2071
2079
2087
2095
Consolidated financial statements Notes to the consolidated financial statements
118 BT Group plc Annual Report & Form 20-F