Full Annual Report - Inchcape

Section
Three
Financial
statements
5 Pensions and other post-retirements benefits continued
Changes in the fair value of the defined benefit asset are as follows:
2009
£m
United Kingdom Overseas Total
At 1 January 697.7 767.5 29.6 31.8 727.3 799.3
Expected return on plan assets 42.6 47.1 1.9 2.3 44.5 49.4
Actuarial gains / (losses):
– Experience gains and losses (1.8) (104.1) 6.1 (12.9) 4.3 (117.0)
Contributions by employer 34.7 20.8 3.0 2.1 37.7 22.9
Contributions by employees 1.3 1.6 0.1 0.1 1.4 1.7
Benefits paid (38.4) (35.2) (3.5) (1.9) (41.9) (37.1)
Effect of foreign exchange rate changes – – (2.5) 8.1 (2.5) 8.1
At 31 December 736.1 697.7 34.7 29.6 770.8 727.3
Irrecoverable element of pension surplus – (43.6) (0.3) (0.3) (0.3) (43.9)
Revised value at 31 December 736.1 654.1 34.4 29.3 770.5 683.4
At the end of the reporting period, the percentage of the plan assets by category had been invested as follows:
United Kingdom Overseas Total
2009 2008 2009 2008 2009 2008
Equities 33.7% 30.3% 71.8% 65.1% 35.5% 31.8%
Corporate bonds 35.2% 35.6% 19.5% 24.8% 34.5% 35.2%
Government bonds 23.7% 33.5% – – 22.6% 32.1%
Other 7.4% 0.6% 8.7% 10.1% 7.4% 0.9%
100.0% 100.0% 100.0% 100.0% 100.0% 100.0%
The history of the plans for the current and previous years is as follows:
2008
£m
2009
£m
2008
£m
2009
£m
2008
£m
Present value of defined benefit obligation (845.3) (677.4) (770.5) (755.8) (748.6)
Fair value of plan assets 770.8 727.3 799.3 733.3 679.5
(Deficit) / surplus (74.5) 49.9 28.8 (22.5) (69.1)
Irrecoverable element of pension surplus (0.3) (43.9) (0.3) (0.2) (0.3)
Revised (deficit) / surplus (74.8) 6.0 28.5 (22.7) (69.4)
Experience adjustments on plan liabilities 5.2 16.7 0.1 8.6 0.4
Experience adjustments on plan assets 4.3 (117.0) 1.3 3.8 46.1
The cumulative actuarial gains and losses arising since 1 January 2004 recognised in shareholders’ equity amounted to a £148.9m loss at
31 December 2009 (2008 – £29.2m loss).
The Group has agreed to pay approximately £23m to its defined benefit plans in 2010.
2009
£m
2008
£m
2007
£m
2006
£m
2005
£m
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