Marks and Spencer 2016 Annual Report Download - page 107

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105
ANNUAL REPORT AND FINANCIAL STATEMENTS 2016
NOTES TO THE FINANCIAL STATEMENTS
CONTINUED
OUR BUSINESSOUR PERFORMANCEGOVERNANCEFINANCIAL 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:
2016
£m
2015
£m
Current service cost 98.0 82.4
Administration costs 3.0 2.0
Past service costs – curtailment charge 1.0 1.0
Net interest income (15.3) (10.5)
Total 86.7 74.9
Remeasurement on the net defi ned benefi t surplus:
– actual return on scheme assets excluding amounts included in net interest income 156.3 (1,722.4)
– actuarial gain – experience (164.8) (33.7)
– actuarial loss – demographic assumptions 100.8 83.9
– actuarial (gain)/loss – fi nancial assumptions (438.5) 1,478.5
Components of defi ned benefi t gain recognised in other comprehensive income (346.2) (193.7)
G. Scheme assets
Changes in the fair value of the scheme assets are as follows:
2016
£m
2015
£m
Fair value of scheme assets at start of year 8,596.5 6,729.4
Interest income based on discount rate 262.4 293.0
Actual return on scheme assets excluding amounts included in net interest income¹ (156.3) 1,722.4
Employer contributions 118 . 4 143.0
Benefi ts paid (311.7) (276.5)
Administration costs (3.0) (2.0)
Exchange movement 9.0 (12.8)
Fai r val u e of sch eme as set s at end of yea r 8 , 515 . 3 8,596.5
1. The actual return on scheme assets was a gain of £106.1m (last year gain of £2,015.4m).
H. Pensions and other post-retirement liabilities
Changes in the present value of retirement benefi t obligations are as follows:
2016
£m
2015
£m
Present value of obligation at start of year 8,147.5 6,540.4
Current service cost 98.0 82.4
Curtailment charge 1.0 1.0
Interest cost 247.1 282.5
Benefi ts paid (311.7) (276.5)
Actuarial gain – experience (164.8) (33.7)
Actuarial loss – demographic assumptions 100.8 83.9
Actuarial (gain) /loss – fi nancial assumptions (438.5) 1,478.5
Exchange movement 11. 8 (11.0)
Present value of obligation at end of year 7,691.2 8,147.5
Analysed as:
Present value of pension scheme liabilities 7,682.3 8,135.8
Unfunded pension plans 0.9 0.7
Post-retirement healthcare 8.0 11. 0
Present value of obligation at end of year 7,691.2 8,147.5
The average duration of the defi ned benefi t obligation at 2 April 2016 is 18 years (last year 18 years).