Barclays 2010 Annual Report Download - page 235

28 Retirement benefit obligations continued
Actuarial gains and losses
The actuarial gains and losses arising on plan liabilities and plan assets are as follows:
2010
£m
2009
£m
2008
£m
2007
£m
2006
£m
UK schemes
Present value of obligations (20,225) (19,274) (14,438) (16,623) (17,353)
Fair value of plan assets 17,621 15,675 13,537 17,231 16,761
Net (deficit)/surplus in the plans (2,604) (3,599) (901) 608 (592)
Experience (losses) and gains on plan liabilities
– amount (207) 107 (81) (297) 48
– as percentage of plan liabilities (1%) 1% (1%) (2%) –
Difference between actual and expected return on plan assets
– amount 995 1,424 (4,534) (332) 423
– as percentage of plan assets 6% 9% (33%) (2%) 3%
Overseas schemes
Present value of obligations (1,576) (1,372) (1,345) (1,011) (970)
Fair value of plan assets 1,284 1,025 959 796 745
Net deficit in the plans (292) (347) (386) (215) (225)
Experience losses on plan liabilities
– amount (9) (45) (96) (79) (54)
– as percentage of plan liabilities (1%) (3%) (7%) (8%) (6%)
Difference between actual and expected return on plan assets
– amount 17 (8) (121) (11) 25
– as percentage of plan assets 1% (1%) (13%) – 3%
Total UK and Overseas schemes
Present value of obligations (21,801) (20,646) (15,783) (17,634) (18,323)
Fair value of plan assets 18,905 16,700 14,496 18,027 17,506
Net (deficit)/surplus in the plans (2,896) (3,946) (1,287) 393 (817)
Experience (losses) and gains on plan liabilities
– amount (216) 62 (177) (376) (6)
– as percentage of plan liabilities (1%) – (1%) (2%) –
Difference between actual and expected return on plan assets
– amount 1,012 1,416 (4,655) (343) 448
– as percentage of plan assets 5% 8% (32%) (2%) 3%
Funding
The triennial funding valuation of the UKRF is currently in progress with an effective date of 30th September 2010. The last triennial funding valuation of
the UKRF was performed with an effective date of 30th September 2007 which showed a surplus of £0.2bn. In compliance with the Pensions Act 2004,
the Bank and Trustee 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 UKRF has sufficient assets to make payments to members in respect of their accrued benefits as and
when they fall due. This funding valuation used a discount rate that reflected a prudent expectation of long-term future investment returns from the
current and assumed future investment strategy.
The Scheme Actuary prepares an annual update of the funding position as at 30th September. The latest annual update was carried out as at
30th September 2010 and showed a deficit of £4.8bn.
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, and in 2010 made an
additional voluntary contribution of £300m (2009: £150m). Defined benefit contributions paid with respect to the UKRF were as follows:
£m
Contributions paid
2010 666
2009 525
2008 336
Based on the current schedule of contributions, the Group is committed to making estimated contributions to the UKRF in 2011 of £285m. The
30th September 2010 UKRF valuation is due to be finalised by the end of 2011. Excluding the UKRF, the Group is expected to pay contributions of
approximately £1m to UK schemes and £60m to overseas schemes in 2011.
Barclays PLC Annual Report 2010 www.barclays.com/annualreport10 233
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