Barclays 2009 Annual Report Download - page 238

236 Barclays PLC Annual Report 2009 www.barclays.com/annualreport09
Notes to the accounts
For the year ended 31st December 2009
continued
29 Securitisations continued
The following table shows the carrying amount of securitised assets, stated at the amount of the Group’s continuing involvement where appropriate,
together with the associated liabilities, for each category of asset on the balance sheet:
2009 2008
Carrying Carrying
amount of Associated amount of Associated
assets liabilities assets liabilities
£m £m £m £m
Loans and advances to customers
Residential mortgage loans 10,374 (10,738) 12,754 (13,172)
Credit card receivables 1,288 (1,288) 1,888 (2,109)
Other personal lending 94 (124) 212 (256)
Wholesale and corporate loans and advances 4,835 (5,999) 7,702 (8,937)
Total 16,591 (18,149) 22,556 (24,474)
Assets designated at fair value through profit or loss
Retained interest in residential mortgage loans 26 316
Balances included within loans and advances to customers represent securitisations where substantially all the risks and rewards of the asset have been
retained by the Group.
The excess of total associated liabilities over the carrying amount of assets primarily reflects timing differences in the receipt and payment of cash flows, and
foreign exchange movements where the assets and associated liabilities are denominated in different currencies.
Retained interests in residential mortgage loans are securities which represent a continuing exposure to the prepayment and credit risk in the underlying
securitised assets. The total amount of the loans was £14,795m (2008: £31,734m). The retained interest is initially recorded as an allocation of the original
carrying amount based on the relative fair values of the portion derecognised and the portion retained.
30 Retirement benefit obligations
Pension schemes
The UK Retirement Fund (UKRF), which is the main scheme of the Group, amounting to 93% of all the Group’s schemes in terms of benefit obligations,
comprises ten sections.
The 1964 Pension Scheme
Most employees recruited before July 1997 are members of this non-contributory defined benefit scheme. Pensions are calculated by reference to service
and pensionable salary and are normally subject to a deduction from State pension age.
The Retirement Investment Scheme (RIS)
A defined contribution plan for most joiners between July 1997 and 1st October 2003. This was closed to new entrants on 1st October 2003 and the large
majority of existing members of the RIS transferred to Afterwork in respect of future benefit accrual with effect from 1st January 2004. There are no longer
any active members of the RIS.
The Pension Investment Plan (PIP)
A defined contribution plan created from 1st July 2001 to provide benefits for employees of Barclays Capital.
Afterwork
Combines a contributory cash balance element with a voluntary defined contribution element. The majority of new employees outside of Barclays Capital
since 1st October 2003 are eligible to join Afterwork. In addition, the large majority of active members of the RIS (now closed) were transferred to Afterwork
in respect of future benefit accrual after 1st January 2004.
Career Average Section
The Career Average Section was established in the UKRF with effect from 1st May 2004 following the transfer of members from the Woolwich Pension
Fund. The Career Average Section is a non-contributory career average scheme and was closed to new entrants on 1st December 2006.
1951 Fund Section, AP89 Section, BCPS Section, CCS Section and Mercantile Section
Five new sections were established in the UKRF with effect from 31st March 2007 following the merger of the UKRF with five smaller schemes sponsored
from within the Group. All five sections are closed to new members.
The 1951 Fund Section, AP89 Section and Mercantile Section provide final salary benefits calculated by reference to service and pensionable salary.
The BCPS and CCS Sections provide defined contribution benefits. The benefits built up in these sections in relation to service before 6th April 1997 are
subject to a defined benefit minimum.
In addition, the costs of ill-health retirements and death in service benefits are generally borne by the UKRF for each of the ten sections. From November
2008, members were given the option to contribute by way of salary sacrifice to the UKRF.
On 10th September 2009, the Trust Deed was amended such that with effect from 1st April 2010 the following sections of the UKRF will close to the
accrual of future pension benefits: 1964 Pension Scheme; AP89 Section; 1951 Fund Section; Mercantile Section; Career Average Section; and CCS Section.
Members of these sections will be eligible to accrue future service pension benefits in either Afterwork or PIP from 1st April 2010. This gave rise to the
recognition of a curtailment gain during the year of £487m, the recognition of actuarial losses of £79m and an additional cost of £37m included in other
staff costs.