Barclays 2004 Annual Report Download - page 209

Barclays PLC Annual Report 2004
207
52 Differences between UK GAAP and US GAAP accounting principles (continued)
(c) Pensions and post-retirement benefits (continued)
For pensioners in the UK the same assumption for the increase in the per capita cost of covered medical benefits is adopted for the 2004 year-end
as in the US (5.6% annual rate as at the end of 2003).
A one percentage point change in assumed health care trend rates would have the following effects for 2004:
1% increase 1% decrease
£m £m
Effect on total of service and interest cost components 1 (1)
Effect on post-retirement benefit obligation 18 (15)
The following table presents the estimated funded status of the pension schemes and post-retirement benefits (the latter are unfunded) under
US GAAP:
2004 2003 2002
Post- Post- Post-
retirement retirement retirement
Pensions benefits Pensions benefits Pensions benefits
£m £m £m £m £m £m
Change in benefit obligation
Benefit obligation at beginning of period 13,331 85 12,296 79 10,789 70
Service cost 319 1 292 1 275 1
Interest cost 692 5 630 5 624 5
Plan participants’ contributions 26 – 17 – 6 –
Curtailment and termination benefits ––––76–
Prior period service cost 1–2–––
Actuarial loss 843 16 559 8 941 12
Benefits paid (445) (4) (465) (5) (415) (4)
Exchange and other – (3) –(3) – (5)
Benefit obligation at end of period 14,767 100 13,331 85 12,296 79
Change in plan assets
Fair value of plan assets at beginning of period 10,980 – 10,152 – 11,135 –
Actual return on plan assets 1,284 – 1,102 – (618) –
Employer contribution/transfers 511 4 174 5 44 4
Plan participants’ contributions 26 – 17 – 6 –
Benefits paid (445) (4) (465) (5) (415) (4)
Fair value of plan assets at end of period 12,356 – 10,980 – 10,152 –
Funded status – deficit (2,411) (100) (2,351) (85) (2,144) (79)
Unrecognised transition amount –5–6(12) 8
Unrecognised net actuarial loss 1,948 46 1,678 31 1,590 24
Unrecognised prior service cost 3–2–––
Accrued benefit cost (460) (49) (671) (48) (566) (47)