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107
ANNUAL REPORT AND FINANCIAL STATEMENTS 2015
NOTES TO THE FINANCIAL STATEMENTS
CONTINUED
OUR BUSINESSOUR PERFORMANCE
GOVERNANCEFINANCIAL STATEMENTS
11 RETIREMENT BENEFITS CONTINUED
F. Analysis of amounts charged against profi ts
Amounts recognised in comprehensive income in respect of retirement benefi t plans are as follows:
2015
£m
2014
£m
Current service cost 82.4 88.7
Administration costs 2.0 3.0
Past service costs – curtailment charge 1.0 1.0
UK and Ireland one-o pension credits –(27.5)
Net interest income (10.5) (11.7)
Total 74.9 53.5
Remeasurement on the net defi ned benefi t surplus:
– actual return on scheme assets excluding amounts included in net interest income 1,722.4 (322.0)
– actuarial gain/(loss) – experience 33.7 (17.4)
– actuarial loss – demographic assumptions (83.9) –
– actuarial (loss)/gain – fi nancial assumptions (1,478.5) 254.1
Components of defi ned benefi t cost recognised in other comprehensive income 193.7 (85.3)
Total 268.6 (31.8)
G. Scheme assets
Changes in the fair value of the scheme assets are as follows:
2015
£m
2014
£m
Fair value of scheme assets at start of year 6,729.4 6,930.0
Interest income based on discount rate 293.0 294.0
Actual return on scheme assets excluding amounts included in net interest income¹ 1,722.4 (322.0)
Employer contributions 143.0 92.1
Benefi ts paid (276.5) (261.2)
Administration costs (2.0) (3.0)
Exchange movement (12.8) (0.5)
Fa i r valu e of sc h e m e asse t s at e n d of year 8 , 59 6 .5 6,729.4
1. The actual return on scheme assets was a gain of £2,015.4m (last year loss of £27.9m).
H. Pensions and other post-retirement liabilities
Changes in the present value of retirement benefi t obligations are as follows:
2015
£m
2014
£m
Present value of obligation at start of year 6,540.4 6,694.0
Current service cost 82.4 88.7
Curtailment charge 1.0 1.0
One-o UK and Ireland pension credit (note 5) –(27.5)
Interest cost 282.5 282.3
Benefi ts paid (276.5) (261.2)
Actuarial (gain)/loss – experience (33.7) 17.4
Actuarial loss – demographic assumptions 83.9 –
Actuarial loss/(gain) – fi nancial assumptions 1,478.5 (254.1)
Exchange movement (11.0) (0.2)
Present value of obligation at end of year 8,147.5 6,540.4
Analysed as:
Present value of pension scheme liabilities 8,135.8 6,528.7
Unfunded pension plans 0.7 0.7
Post-retirement healthcare 11.0 11. 0
Present value of obligation at end of year 8,147.5 6,540.4
The average duration of the defi ned benefi t obligation at 28 March 2015 is 18 years (last year 18 years).