Barclays 2005 Annual Report Download - page 273

Barclays PLC
Annual Report 2005 271
3.5
63 Differences between IFRS and US GAAP accounting principles (continued)
(c) Pensions and post-retirement benefits (continued)
The following table presents the estimated funded status of the pension schemes and post-retirement benefits (the latter are unfunded) under
US GAAP:
2005 2004
Post- Post-
retirement retirement
Pensions benefits Pensions benefits
£m £m £m £m
Change in benefit obligation
Benefit obligation at beginning of period for UKRF 14,767 100 13,331 85
Benefit obligation for Barclays Capital schemes 225 – ––
Service cost 361 2 319 1
Interest cost 808 6 692 5
Plan participants’ contributions 26 – 26 –
Termination benefits 51 – ––
Prior period service cost 4–1–
Actuarial loss 1,691 23 843 16
Benefits paid (477) (4) (445) (4)
Exchange and other 27 4 – (3)
Benefit obligation at end of period 17,483 131 14,767 100
Change in plan assets
Fair value of plan assets at beginning of period for UKRF 12,356 – 10,980 –
Fair value of plan assets for Barclays Capital schemes 184 – ––
Actual return on plan assets 2,426 – 1,284 –
Employer contribution 266 4 511 4
Plan participants’ contributions 26 –26 –
Benefits paid (477) (4) (445) (4)
Exchange and other 21 – ––
Fair value of plan assets at end of period 14,802 – 12,356 –
Funded status – deficit (2,681) (131) (2,411) (100)
Unrecognised transition amount –5–5
Unrecognised net actuarial loss 2,047 68 1,948 46
Unrecognised prior service cost 7–3–
Accrued benefit cost (627) (58) (460) (49)
The minimum liability, intangible asset and other comprehensive income as at the measurement date for the pension schemes is shown in the
table below:
2005 2004
Barclays Barclays
Capital Capital
Retirement Restoration
Plan Plan UKRF UKRF
£m £m £m £m
Scheme assets at market value 213 – 14,589 12,356
Accumulated Benefit Obligation (ABO) 249 12 15,149 13,109
Minimum liability (excess of ABO over market value of assets) 36 12 560 753
Prepaid/(accrued) pension cost 18 (13) (632) (460)
Minimum additional liability 54––293
Intangible asset –––(3)
Accumulated other comprehensive income 54––290
A long-term strategy has been set for the pension plan asset allocation which comprises a mixture of equities, bonds, property and other
appropriate assets. This recognises that different asset classes are likely to produce different long-term returns, and some asset classes will be more
volatile than others.
One of the factors in the choice of a long-term strategy is to ensure that the investments are adequately diversified. The managers are permitted
some flexibility to vary the asset allocation from the long-term strategy within control ranges agreed with the Trustee from time to time.