Barclays 2009 Annual Report Download - page 239

www.barclays.com/annualreport09 Barclays PLC Annual Report 2009 237
30 Retirement benefit obligations continued
Governance
The UKRF operates under trust law and is managed and administered on behalf of the members in accordance with the terms of the Trust Deed and all
relevant legislations. The Corporate Trustee is Barclays Pension Funds Trustees Limited (BPFTL), a private limited company incorporated on 20th December
1990 and is a wholly owned subsidiary of Barclays Bank PLC. The Trustee is the legal owner of the assets of the UKRF which are held separately from the
assets of the Group.
The Trustee Board comprises six Management Directors selected by Barclays, of whom three are independent Directors with no relationship with Barclays or
the UKRF, and three are Member Nominated Directors. In addition there are three Alternate Management Directors and three Alternate Member Nominated
Directors. Member Nominated Directors are selected from those eligible active staff and pensioner members who apply to be considered for the role.
The Pensions Act 2004 (the Act) requires corporate trustees to take responsibility for making arrangements for the nomination and selection of Member
Nominated Directors (MNDs). A formal procedure has been in place since 1st September 2007, which is fully compliant with the legal requirements and
reflects best practice. Eligibility for nomination and selection is open to all members of the UKRF but excludes those in receipt of solely spouses, civil
partners, dependants or ex-spouse participants pensions, deferred pensioners and members with eligibility for death benefits only.
Under the Act, the Bank and the Trustee must agree on the funding rate, including a recovery plan to fund any deficit against the scheme specific statutory
funding objective. The first ongoing funding valuation to be completed under this legislation was carried out as at 30th September 2007.
There are other pension schemes (both defined benefit and defined contribution) in the UK and overseas. The same principles of pension governance
applies to UK based schemes, although different legislation covers overseas schemes where, in most cases, the Bank has the power to determine the
funding rate.
The following tables present an analysis of defined benefit obligation and fair value of plan assets for all the Group’s pension schemes and post-retirement
benefits (the latter are unfunded) and present the amounts recognised in the income statement including those related to post-retirement health care.
2009 2008 2007
Other post- Other post- Other post-
retirement retirement retirement
Pensions benefits Total Pensions benefits Total Pensions benefits Total
£m £m £m £m £m £m £m £m £m
Income statement charge
Current service cost 281 10 291 299 2 301 332 2 334
Interest cost 992 9 1,001 991 8 999 905 8 913
Expected return on scheme assets (935) – (935) (1,175) – (1,175) (1,074) – (1,074)
Recognised actuarial (gain)/loss 96 – 96 (23) (1) (24) (1) – (1)
Past service cost 6–62 (8) (6) 20 – 20
Curtailment or settlements (473) – (473) (5) – (5) (32) – (32)
Total included in staff costs (33) 19 (14) 89 1 90 150 10 160
Staff costs are included in other operating expenses. Of the other post retirement benefit costs £16m relate to continuing operations (2008: £1m, 2007: £9m).
2009 2008
Post-retirement Post-retirement
Pensions benefits Total Pensions benefits Total
UK Overseas UK Overseas UK Overseas UK Overseas
£m £m £m £m £m £m £m £m £m £m
Benefit obligation at
beginning of the year (14,395) (1,220) (43) (125) (15,783) (16,563) (913) (60) (98) (17,634)
Current service cost (254) (27) (1) (9) (291) (276) (23) – (2) (301)
Interest cost (941) (51) (3) (6) (1,001) (946) (45) (3) (5) (999)
Past service cost (1) – – – (1) (2) (11) 7 – (6)
Curtailments or settlements 482 (7) – 1 476 7 2 – – 9
Actuarial (loss)/gain (4,757) (33) (3) 7 (4,786) 2,807 – 11 (5) 2,813
Contributions by plan participants (2) (5) – – (7) (20) (3) – – (23)
Benefits paid 659 58 1 6 724 598 42 2 9 651
Business disposals –9–615– – – – –
Exchange and other adjustments – (1) (16) 25 8 – (269) – (24) (293)
Benefit obligation at end of the year (19,209) (1,277) (65) (95) (20,646) (14,395) (1,220) (43) (125) (15,783)