BT 2007 Annual Report Download - page 122

29. RETIREMENT BENEFIT PLANS continued
The intention is for there to be sufficient assets in the scheme to pay pensions now and in the future. Without any further
contribution from the company, it is estimated that as at 31 December 2005, the assets of the scheme would have been sufficient
to provide around 70% of the members’ benefits with an insurance company.
If the group were to become insolvent, however, there are a number of additional protections available to members. Firstly, there
is the Crown Guarantee which was granted when the group was privatised in 1984. This applies, on a winding up of the group, to
pension entitlements for anyone who joined the scheme before 6 August 1984, and to payments to beneficiaries of such persons.
Secondly, the Pension Protection Fund (PPF) may take over the scheme and pay certain benefits to members. There are limits on the
amounts paid by the PPF and this would not give exactly the same benefits as those provided by the scheme.
Under the terms of the trust deed that governs the BTPS, the group is required to have a funding plan that should address the
deficit over a maximum period of 20 years. The agreed funding plan addresses the deficit over a period of ten years. The BTPS was
closed to new entrants on 31 March 2001 and the age profile of active members will consequently increase. Under the projected
unit credit method, the current service cost, as a proportion of the active members’ pensionable salaries, is expected to increase as
the members of the scheme approach retirement. Despite the scheme being closed to new entrants, the projected payment profile
extends over more than 60 years.
30. EMPLOYEES
2007 2007 2006 2006 2005 2005
Year end Average Year end Average Year end Average
000 000 000 000 000 000
Number of employees in the group:
UK 92.8 92.4 92.7 91.5 90.8 90.7
Non-UK 13.4 12.8 11.7 11.5 11.3 8.9
Total employees 106.2 105.2 104.4 103.0 102.1 99.6
2007 2007 2006 2006 2005 2005
Year end Average Year end Average Year end Average
000 000 000 000 000 000
Number of employees in the group:
BT Global Services 29.6 28.9 28.7 28.5 28.4 26.0
BT Retail 20.4 20.5 20.2 19.9 20.4 20.7
BT Wholesale 12.5 13.4 14.8 14.4 43.6 43.0
Openreach 33.3 32.1 30.5 30.0 – –
Other 10.4 10.3 10.2 10.2 9.7 9.9
Total employees 106.2 105.2 104.4 103.0 102.1 99.6
The employee numbers by line of business for 2005 are presented on the previous line of business structure prior to the creation of
Openreach, see note 1.
31. SHARE BASED PAYMENTS
The total charge recognised in the 2007 financial year in respect of share based payments was £93 million (2006: £76 million,
2005: £50 million). The total fair value to be recognised over the vesting period of share options and awards granted in the 2007
financial year was £92 million (2006: £105 million, 2005: £88 million).
The company has an employee share investment plan and savings-related share option plans for its employees and those of
participating subsidiaries, further share option plans for selected employees and an employee stock purchase plan for employees in
the United States. It also has several share plans for executives. All share based payment plans are equity settled and details of these
plans are provided below.
BT Group plc Annual Report & Form 20-F 121
Financial statements