Experian 2010 Annual Report Download - page 138

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Experian Annual Report 2010 Financial statements136
Notes to the Group nancial statements (continued)
30. Retirement benet obligations
(a) Pension arrangements
The Group operates dened benet and dened contribution pension plans in a number of countries. A dened benet pension
plan denes an amount of pension benet that an employee will receive on retirement, usually dependent on one or more factors
such as age, years of service and compensation. A dened contribution pension plan denes the amount of contributions that
are paid by the Group into an independently administered fund.
The Group’s principal dened benet plan is the Experian Pension Scheme which provides benets for certain UK employees,
but was closed to new entrants in the year ended 31 March 2009. The Group provides a dened contribution plan, the Experian
Money Purchase Pension Plan, to other eligible UK employees. Both plans are governed by trust deeds which ensure that
their nances and governance are independent from those of the Group. In North America and Latin America, benets are
determined in accordance with local practice and regulations and funding is provided accordingly. There are no other material
funded pension arrangements.
The Experian Pension Scheme has rules which specify the benets to be paid and is nanced accordingly. A full actuarial
funding valuation of this plan is carried out every three years with interim reviews in the intervening years. The latest full
valuation was carried out as at 31 March 2007 by independent, qualied actuaries, Towers Watson Limited, using the projected
unit credit method. Under this method of valuation the current service cost will increase as members approach retirement due to
the ageing active membership of the plan. There was a surplus at the date of the 2007 full actuarial valuation and accordingly no
decit repayment contributions are currently required. The next full valuation will be carried out as at 31 March 2010.
The Group has had arrangements in place for a number of years designed to ensure that certain directors and senior managers
affected by the earnings cap are placed in broadly the same position as those who are not. The Group also has in place
arrangements which secure such unfunded arrangements by granting charges to an independent trustee over independently
managed portfolios of marketable securities owned by the Group. The amount of assets so charged is adjusted annually to keep
the ratio of assets charged to the discounted value of the accrued benets secured as close as possible to the corresponding
ratio in the Experian Pension Scheme. The total value of such assets at 31 March 2010 was US$32m (2009: US$22m). Further
details of the pension arrangements for directors appear in the audited part of the report on directors’ remuneration.
(b) Post-retirement healthcare obligations
The Group operates plans which provide post-retirement healthcare benets to certain retired employees and their dependant
relatives. The principal plan relates to former employees in the UK and, under this plan, the Group has undertaken to meet the
cost of post-retirement healthcare for all eligible former employees who retired prior to 1 April 1994 and their dependants.
(c) Pension disclosures
The disclosures required by IAS 19 'Employee Benets', which relate to the Group’s UK dened benet pension arrangements
and post-retirement healthcare obligations only, are as follows:
(i) Amounts recognised in the Group balance sheet
2010
US$m
2009
US$m
Retirement benet obligations - funded plans:
Present value of funded plans’ liabilities 860 614
Fair value of funded plans’ assets (822) (595)
Decit in the funded plans 38 19
Retirement benet obligations - unfunded plans:
Present value of unfunded pension arrangements 36 26
Liability for post-retirement healthcare 14 13
Retirement benet obligations - unfunded plans 50 39
Net retirement benet obligations 88 58
(ii) Movements in amounts recognised in the Group balance sheet
2010
US$m
2009
US$m
At 1 April 58 (132)
Differences on exchange 39
Total amounts recognised in Group income statement 11 (7)
Actuarial losses recognised within other comprehensive income 28 202
Contributions paid by the Group (12) (14)
At 31 March 88 58