Barclays 2005 Annual Report Download - page 195

38 Retirement benefit obligations (continued)
Change in benefit obligation
2005 2004
Post-retirement Post-retirement
Pensions benefits Total Pensions benefits Total
UK Overseas UK Overseas UK Overseas UK Overseas
£m £m £m £m £m £m £m £m £m £m
Benefit obligation at
beginning of year (15,494) (522) (80) (65) (16,161) (13,721) (521) (62) (62) (14,366)
Current service cost (332) (16) (18) (4) (370) (316) (14) (18) (2) (350)
Interest cost (822) (31) (3) (1) (857) (742) (30) (2) (4) (778)
Past service cost (12) (1) – (1) (14) (1) – – – (1)
Curtailments or settlements 58 3 – – 61 23 17 – – 40
Actuarial (loss)/gain (2,024) (28) (18) (4) (2,074) (1,189) (56) (15) (6) (1,266)
Contributions by plan participants (13) (2) – – (15) (10) (1) – – (11)
Benefits paid 490 24 16 5 535 462 21 17 5 505
Business combinations – (335) – – (335) –––––
Exchange and other adjustments – (30) – (9) (39) –62 – 466
Benefit obligation at end of year (18,149) (938) (103) (79) (19,269) (15,494) (522) (80) (65) (16,161)
The UKRF deficit measured using the IAS 19 assumptions has increased over the year from £2.2bn at 31st December 2004 to £2.5bn at
31st December 2005. The increased UKRF deficit is primarily attributable to the decrease in the discount rate reflecting the fall in AA corporate
bond yields over the period. This change in assumptions had the effect of increasing liabilities measured for IAS 19 purposes a little under £2bn
which more than offset the £354m contribution and strong investment returns achieved over the year.
The actuarial funding position of the UKRF as at 31st December 2005, estimated from the formal triennial valuation in 2004, was a surplus of
£900m (2004: deficit of £50m).
Change in plan assets
2005 2004
Post-retirement Post-retirement
Pensions benefits Total Pensions benefits Total
UK Overseas UK Overseas UK Overseas UK Overseas
£m £m £m £m £m £m £m £m £m £m
Fair value of plan assets at
beginning of the year 13,261 436 – – 13,697 12,103 441 – – 12,544
Expected return on plan assets 867 31 – – 898 805 29 – – 834
Employer contribution 358 11 1 3 373 263 11 1 4 279
Settlements (7) – – – (7) –––––
Contributions by plan participants 13 2 – – 15 10 1 – – 11
Actuarial gain/(loss) 1,599 2 – – 1,601 570 9 – – 579
Benefits paid (490) (24) (1) (3) (518) (462) (21) (1) (4) (488)
Business combinations – 335 – – 335 –––––
Exchange and other adjustments (30) 26 – – (4) (28) (34) – – (62)
Fair value of plan assets
at the end of the year 15,571 819 – – 16,390 13,261 436 – – 13,697
The benefit obligation arises from plans that are wholly unfunded and wholly or partly funded as follows:
2005 2004
£m £m
Unfunded obligations (224) (183)
Wholly or partly funded obligations (19,045) (15,978)
Total (19,269) (16,161)
Barclays PLC
Annual Report 2005 193
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