Barclays 2007 Annual Report Download - page 214

Notes to the accounts
For the year ended 31st December 2007
212 Barclays PLC Annual Report 2007
30 Retirement benefit obligations (continued)
Funding
The most recent triennial funding valuation of the UK Retirement Fund was performed in September 2004 and forms the basis of the Group’s
commitment that the fund has sufficient assets to make payments to members in respect of their accrued benefits as and when they fall due.
This funding valuation uses a discount rate that reflects the assumed future return from the actual asset allocation at that date, and takes into account
projected future salary increases when assessing liabilities arising from accrued service. The funding valuation is updated annually on the basis of interim
assumptions. The UK Retirement Fund recorded a funding surplus of £1.2bn as at 31st December 2007 (2006: £1.3bn).
The Group has agreed funding contributions which, in aggregate, are no less than those which are sufficient to meet the Group’s share of the cost of
benefits accruing over each year. The Group has, in the recent past, chosen to make funding contributions in excess of this, more consistent with the IAS
service cost.
Defined benefit contributions paid with respect to the UKRF were as follows:
£m
Contributions paid
2007 355
2006 351
2005 354
There is a triennial valuation currently in progress with an effective date of 30th September 2007. To comply with the requirements of the Pensions Act
2004, the Group and trustees plan to agree a scheme specific funding target, statement of funding principles, and a schedule of contributions which in
2008 will supersede those in place under the current actuarial funding valuation.
Excluding the UKRF, the Group is expected to pay contributions of approximately £2m to UK schemes and £41m to overseas schemes in 2008.
The total contribution to be paid in 2008 to the UKRF is not expected to be significantly different than in previous years.
31 Ordinary shares and share premium
Number of Ordinary Share
shares shares premium Total
m£m£m£m
At 1st January 2007 6,535 1,634 5,818 7,452
Issued to staff under the Sharesave Share Option Scheme 19 6 62 68
Issued under the Incentive Share Option Plan 10 2 40 42
Issued under the Executive Share Option Scheme a––11
Issued under the Woolwich Executive Share Option Plan a––11
Transfer to retained earnings – – (7,223) (7,223)
Issue of new ordinary shares 337 84 1,357 1,441
Repurchase of shares (300) (75) – (75)
At 31st December 2007 6,601 1,651 56 1,707
At 1st January 2006 6,490 1,623 5,650 7,273
Issued to staff under the Sharesave Share Option Scheme 18 5 67 72
Issued under the Incentive Share Option Plan 25 6 96 102
Issued under the Executive Share Option Scheme a1–33
Issued under the Woolwich Executive Share Option Plan a1–22
At 31st December 2006 6,535 1,634 5,818 7,452
The authorised share capital of Barclays PLC is £2,500m (2006: £2,500m), comprising 9,996 million (2006: 9,996 million) ordinary shares of 25p each
and 1 million (2006: 1 million) staff shares of £1 each. All issued shares are fully paid.
2007 2006
Called up share capital, allotted and fully paid £m £m
Ordinary shares:
At beginning of year 1,633 1,622
Issued to staff under the Sharesave Share Option Scheme 65
Issued under Incentive Share Option Plan 26
Issue of new ordinary shares 84 –
Repurchase of shares (75) –
At end of year 1,650 1,633
Staff shares 11
Total 1,651 1,634
Note
aThe nominal value for share options issued during 2007 and 2006 for the Executive Share Option Scheme and Woolwich ESOP was less than £500,000 in each case.