Marks and Spencer 2009 Annual Report Download - page 97

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93
11 Retirement benefits continued
2009
years
2008
years
Current pensioners (at age 65) – males 21.2 21.0
– females 23.6 23.5
Future pensioners (at age 65) – males 22.0 21.9
– females 24.3 24.3
D. Analysis of assets and expected rates of return
The major categories of assets as a percentage of total plan assets are:
2009
£m
2008
£m 2009
%
2008
%
Property partnership interest 529.8 506.6 13 10
UK equities 480.8 792.1 12 16
Overseas equities 644.3 1,116.6 16 22
Government bonds 127.2 465.4 39
Corporate bonds 2,278.0 2,058.5 58 41
Cash and other (83.1) 106.3 (2) 2
3,977.0 5,045.5 100 100
The expected long-term rates of return are:
2009
%
2008
%
Property partnership interest 7.1 6.0
UK equities 8.0 8.3
Overseas equities 8.0 8.3
Government bonds 4.2 4.6
Corporate bonds 6.8 6.0
Cash and other 4.2 5.0
Overall expected return 7.2 6.7
The overall expected return on assets assumption is derived as the weighted average of the expected returns from each of the main asset
classes. The expected return for each asset class reflects a combination of historical performance analysis, the forward-looking views of
financial markets (as suggested by the yields available) and the views of investment organisations. Consideration is also given to the rate of
return expected to be available for reinvestment.
At year end, the UK scheme indirectly held 369,793 (last year 479,356) ordinary shares in the Company through its investment in an Aquila
Life UK Equity Index Fund.
E. Analysis of amount charged against profits
2009
£m
2008
£m
Operating cost
Current service cost 72.2 106.1
Curtailment gain (5.0) (3.0)
Exceptional pension credit (see note 5) (231.3) (95.0)
(164.1) 8.1
Finance cost
Expected return on plan assets (334.6) (342.7)
Interest on scheme liabilities 299.2 283.8
Net finance income (35.4) (58.9)
Total (199.5) (50.8)