BT 2016 Annual Report Download - page 194

200 BT Group plc
Annual Report 2016
20. Retirement benefit plans continued
Included within trade and other payables in the group balance sheet is £10m (2014/15: £9m) in respect of contributions payable to
defined contribution plans.
Movements in defined benefit plan assets and liabilities
The table below shows the movements on the total plan assets and liabilities for all group schemes in the year and shows where they are
reflected in the financial statements.
Assets
£m
Liabilities
£m
Deficit
£m
At 31 March 2014 40,113 (47,135) (7,022)
Current service cost (including administration expenses and PPF levy) (42) (254) (296)
Interest on pension deficit 1,663 (1,955) (292)
Past service credit – 5 5
Included in the group income statement (583)
Return on plan assets above the amount included in the group income statementa3,083 –3,083
Actuarial loss arising from changes in financial assumptionsb–(4,703) (4,703)
Actuarial gain arising from changes in demographic assumptionsb–126 126
Actuarial gain arising from experience adjustmentsc–443 443
Included in the group statement of comprehensive income (1,051)
Regular contributions by employer 178 –178
Deficit contributions by employer 876 – 876
Included in the group cash flow statement 1,054
Contributions by employees 12 (12) –
Benefits paid (2,231) 2,231 –
Foreign exchange (25) 44 19
Other movements 19
At 31 March 2015 43,627 (51,210) (7,583)
Current service cost (including administration expenses and PPF levy) (40) (261) (301)
Interest on pension deficit 1,406 (1,627) (221)
Included in the group income statement (522)
Return on plan assets below the amount included in the group income statementa(423) –(423)
Actuarial gain arising from changes in financial assumptionsb–255 255
Actuarial gain arising from changes in demographic assumptionsb–22
Actuarial gain arising from experience adjustmentsc–921 921
Included in the group statement of comprehensive income 755
Regular contributions by employer 226 –226
Deficit contributions by employer 880 –880
Included in the group cash flow statement 1,106
EEPS position at acquisition 585 (698) (113)
Contributions by employees 10 (10) –
Benefits paid (2,321) 2,321 –
Foreign exchange 18 (43) (25)
Other movements (138)
At 31 March 2016 43,968 (50,350) (6,382)
a The total actual return on plan assets in 2015/16 was a gain of £983m (2014/15: £4,746m).
b The actuarial gain or loss arises from changes in the assumptions used to value the defined benefit liabilities at the end of the year compared with the assumptions used at the start of the year. Thisincludes
both financial assumptions, which are based on market conditions at the year end, and demographic assumptions such as life expectancy.
c The actuarial loss or gain arising from experience adjustments on defined benefit liabilities represents the impact on the liabilities of differences between actual experience during the year compared with
the assumptions made at the start of the year. Such differences might arise, for example, from members choosing different benefit options at retirement, actual salary increases being different from those
assumed or actual benefit increases being different to the pension increase assumption.