BT 2008 Annual Report Download - page 128

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BT Group plc Annual Report & Form 20-F 127
29. Retirement benefit plans continued
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 2008
(£bn)
0.00
1.00
2.00
3.00
4.00
2008
2015
2023
2039
2047
2055
2063
2071
2079
2087
2095
An analysis of actuarial gains and losses and the actual return on plan assets is shown below:
2008 2007 2006
£m £m £m
.....................................................................................................................................................................................................................................
Actuarial gains and losses recognised in the year 2,621 1,409 2,122
Cumulative actuarial gains and losses 6,446 3,825 2,416
Actual return on plan assets (124) 3,285 6,925
Changes in the present value of the defined benefit pension obligation are as follows:
2008 2007
£m £m
.....................................................................................................................................................................................................................................
Opening defined benefit pension obligation (38,779) (38,187)
Service cost (576) (600)
Interest cost (2,028) (1,872)
Contributions by employees (19) (18)
Actuarial gain 5,193 416
Benefits paid 1,559 1,477
Exchange differences (19) 5
Closing defined benefit pension obligation (34,669) (38,779)
Changes in the fair value of plan assets are as follows:
2008 2007
£m £m
.....................................................................................................................................................................................................................................
Opening fair value of plan assets 38,390 35,640
Expected return 2,448 2,292
Actuarial (loss) gain (2,572) 993
Regular contributions by employer 388 406
Deficiency contributions by employer 320 520
Contributions by employees 19 18
Benefits paid (1,559) (1,477)
Exchange differences 14 (2)
Closing fair value of plan assets 37,448 38,390
Financial statements