Barclays 2005 Annual Report Download - page 197

38 Retirement benefit obligations (continued)
The value of the assets of the schemes and their percentage in relation to total scheme assets at 31st December 2005 and 31st December 2004
were as follows:
2005 2004
Overseas Overseas
UK schemes schemes Total UK schemes schemes Total
% of % of % of % of % of % of
total fair total fair total fair total fair total fair total fair
value of value of value of value of value of value of
Value scheme Value scheme Value scheme Value scheme Value scheme Value scheme
£m assets £m assets £m assets £m assets £m assets £m assets
United Kingdom equities 2,782 17.9 13 1.6 2,795 17.1 2,619 19.7 12 2.7 2,631 19.2
US equities 1,734 11.1 90 11.0 1,824 11.1 1,523 11.5 83 18.9 1,606 11.7
Other equities 3,007 19.3 228 27.8 3,235 19.7 2,399 18.1 83 18.9 2,482 18.1
United Kingdom corporate bonds 1,827 11.7 – – 1,827 11.1 1,621 12.2 – – 1,621 11.8
United Kingdom fixed interest gilts 212 1.4 – – 212 1.3 117 0.9 – – 117 0.9
United Kingdom index-linked gilts 2,517 16.2 – – 2,517 15.4 2,325 17.5 – – 2,325 17.0
Derivatives(a) 282 1.8 10 1.2 292 1.8 157 1.2 – – 157 1.1
Property 1,678 10.8 16 2.0 1,694 10.3 1,409 10.6 14 3.2 1,423 10.4
US debt fund – – 37 4.5 37 0.2 ––––––
US treasury stock 100 0.6 47 5.7 147 0.9 91 0.7 – – 91 0.7
Other overseas bonds and
government stock 799 5.1 259 31.7 1,058 6.5 717 5.4 120 27.8 837 6.1
Cash 474 3.0 33 4.0 507 3.1 275 2.1 35 8.0 310 2.3
Other 159 1.1 86 10.5 245 1.5 8 0.1 89 20.5 97 0.7
Fair value of plan assets(b) 15,571 100 819 100 16,390 100 13,261 100 436 100 13,697 100
Amounts included in the fair value of plan assets include £4m (2004: £5m) relating to shares in Barclays Group, £1m (2004: £1m) relating to bonds
issued by the Barclays Group, and £5m (2004: £5m) relating to property occupied by Group companies.
The expected return on assets is determined by calculating a total return estimate based on weighted average estimated returns for each asset
class. Asset class returns are estimated using current and projected economic and market factors such as inflation, credit spreads and equity
risk premiums.
The actual return on plan assets was £2,499m (2004: £1,413m).
The experience adjustments arising on plan liabilities and plan assets is as follows:
UK schemes Overseas schemes Total
2005 2004 2005 2004 2005 2004
£m £m £m £m £m £m
Fair value of plan assets 15,571 13,261 819 436 16,390 13,697
Present value of obligations (18,252) (15,574) (1,017) (587) (19,269) (16,161)
Net deficit in the plans (2,681) (2,313) (198) (151) (2,879) (2,464)
Actuarial losses
– arising on benefit obligation (2,042) (1,204) (32) (62) (2,074) (1,266)
– arising on benefit obligation (% plan liabilities) 11% 8% 3% 11% 11% 8%
Actuarial gains
– arising on plan assets 1,599 570 291,601 579
– arising on plan assets (% of plan assets) 10% 4% –2% 10% 4%
Post-retirement health care
A one percentage point change in assumed health care trend rates, assuming all other assumptions remain constant would have the following
effects for 2005:
1% increase 1% decrease
£m £m
Effect on total of service and interest cost components (0.8) 0.6
Effect on post-retirement benefit obligation 20.5 (25.0)
Notes
(a) In certain circumstances, derivatives (mainly total return swaps) are used to derive changes in investment strategy in advance of the sales and purchases of assets in
accordance with the Scheme’s investment strategy. The percentage of fair value of Scheme assets is based on the derivatives together with their related underlying
asset, where necessary to reflect the investment strategy of the scheme.
(b) Excludes £512m (2004: £375m) representing the money purchase assets of the UKRF.
Barclays PLC
Annual Report 2005 195
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