Marks and Spencer 2008 Annual Report Download - page 74

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72 MARKS AND SPENCER GROUP PLC
Notes to the financial statements
continued
11 Retirement benefits continued
F Scheme assets
Changes in the fair value of the scheme assets are as follows:
2008 2007
£m £m
Fair value of scheme assets at start of year 5,227.5 4,606.2
Expected return on scheme assets1342.7 282.0
Employer contributions2, 3 111.1 611.3
Contributions from scheme members 1.0 –
Benefits paid (220.4) (191.8)
Actuarial loss (422.6) (80.4)
Exchange movement 6.2 0.2
Fair value of scheme assets at end of year 5,045.5 5,227.5
1 The actual return on scheme assets was a loss of £79.9m (last year gain of £201.6m).
2 The contribution for 2006/07 includes the additional contribution of the property partnership interest of £500.1m transferred into the UK defined benefit pension scheme on
14 March 2007 and cash contributions of £57.7m paid in March 2006 plus £40.3m paid in April 2007 to increase contributions from 15.8% to 27.0%.
3 This year the Group has agreed to pre-fund £200.0m of its annual contribution to the UK defined benefit pension scheme for the next three years by contributing to the Trustee
rights to further income of the property backed partnership. Additional properties with a current market value of approximately £400.0m have been put into the partnership to
facilitate the transaction. The prepayment is in respect of annual contributions to the UK scheme at the rate of 24.3% of pensionable salaries up to 30 September 2008 and
then 23.7% up to the next full actuarial valuation. It is estimated that approximately £76m of the prepayment will relate to the year ended 28 March 2009.
G Retirement benefit obligations
Changes in the present value of retirement benefit obligations are as follows:
2008 2007
£m £m
Present value of obligation at start of year 5,510.8 5,401.1
Current service cost 106.1 113.9
Curtailment gain (3.0) (2.0)
Exceptional pension credit (95.0) –
Interest cost 283.8 261.2
Contributions from scheme members 1.0 –
Benefits paid (220.4) (191.8)
Actuarial gain (1,028.0) (71.8)
Acquisition of subsidiary 0.4 –
Exchange movement 6.3 0.2
Present value of obligation at end of year 4,562.0 5,510.8
Analysed as:
Present value of pension scheme liabilities 4,542.3 5,487.0
Unfunded pension plans 1.3 1.2
Post-retirement healthcare 18.4 22.6
Present value of obligation at end of year 4,562.0 5,510.8
H Cumulative actuarial gains and losses recognised in equity
2008 2007
£m £m
Loss at start of year (935.6) (927.0)
Net actuarial gains/(losses) recognised in the year 605.4 (8.6)
Loss at end of year (330.2) (935.6)
I History of experience gains and losses UK GAAP
2008 2007 2006 2005 2004
£m £m £m £m £m
Experience adjustments arising on scheme assets (422.6) (80.4) 454.3 77.4 401.9
Experience (losses)/gains arising on scheme liabilities (61.5) 18.8 20.0 (24.0) (30.3)
Changes in assumptions underlying the present value of scheme liabilities 1,089.5 53.0 (643.6) (131.5) (157.8)
Actuarial gains/(losses) recognised in equity 605.4 (8.6) (169.3) (78.1) 213.8
Fair value of scheme assets 5,045.5 5,227.5 4,606.2 3,956.8 3,634.2
Present value of scheme liabilities (4,542.3) (5,487.0) (5,381.3) (4,611.0) (4,280.1)
Pension scheme asset/(deficit) 503.2 (259.5) (775.1) (654.2) (645.9)