Barclays 2008 Annual Report Download - page 242

Notes to the accounts
For the year ended 31st December 2008
240 Barclays PLC Annual Report 2008 |Find out more at www.barclays.com/annualreport08
30Retirement benefit obligations (continued)
Funding
The most recent triennial funding valuation of the UK Retirement Fund was performed with an effective date of 30th September 2007. In compliance
with the Pensions Act 2004, the Group and Trustee have agreed a scheme specific funding target, statement of funding principles, and a schedule of
contributions. This agreement 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 valution uses a discount rate that reflects a prudent expectation of long-term future
investment returns from the current and assumed future investment stategy, and takes into account projected future salary increases when assessing
liabilities arising from accrued service.
As at 30th September 2007 the funding valuation showed a surplus of £0.2bn. The Scheme Actuary prepares an annual update of the funding position
as at 30th September. The first annual update was carried out as at 30th September 2008 and showed a deficit of £2.2bn.
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
2008 336
2007 355
2006 351
Excluding the UKRF, the Group is expected to pay contributions of approximately £2m to UK schemes and £53m to overseas schemes in 2009.
The total contribution to be paid in 2009 to the UKRF is not expected to be significantly different than in previous years.
31 Ordinary shares, share premium, and other equity
Ordinary shares and share premium
Number of Ordinary Share
shares shares premium Total
m £m £m £m
At 1st January 2008 6,601 1,651 56 1,707
Issued to staff under the Sharesave Share Option Scheme 3113 14
Issued under the Incentive Share Option Plan a1–33
Issued to staff under the Share Incentive Plan a1–22
Issue of new ordinary shares 1,803 451 3,971 4,422
Repurchase of shares (37) (10) – (10)
At 31st December 2008 8,372 2,093 4,045 6,138
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 b––11
Issued under the Woolwich Executive Share Option Plan b––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
Note
aThe nominal value for share options issued during 2008 for the Incentive Share Option Plan and Share Incentive Plan was less than £500,000 in each case.
bThe nominal value for share options issued during 2007 for the Executive Share Option Scheme and Woolwich Executive Share Option Plan was less than £500,000 in each case.