FSA Annual Report 2006/07 - Better Regulation Ltd
FSA Annual Report 2006/07 - Better Regulation Ltd
FSA Annual Report 2006/07 - Better Regulation Ltd
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88<br />
Section five – Financial statements<br />
<strong>FSA</strong> <strong>Annual</strong> <strong>Report</strong> <strong>2006</strong>/<strong>07</strong><br />
A small number of current and former employees have benefit promises that<br />
cannot be delivered entirely through the tax-approved scheme described<br />
above. At 31 March 20<strong>07</strong> the liability is £1.9m (<strong>2006</strong>: £1.8m) to cover the<br />
cost of these promises. An amount of £0.1m (<strong>2006</strong>: £0.4m) is included in the<br />
total pension cost for the year in note 6, representing the value of the<br />
additional benefits accrued.<br />
Amounts recognised in the income statement in respect of the defined benefit<br />
plan are as follows:<br />
20<strong>07</strong> <strong>2006</strong><br />
£m £m<br />
Current service cost 9.4 8.2<br />
Past service cost 0.3 0.3<br />
Administration expenses 9.7 8.5<br />
Expected return on plan assets 18.0 13.7<br />
Interest on scheme liabilities (17.0) (14.5)<br />
Other finance income / (costs) 1.0 (0.8)<br />
Current service costs and past service costs are disclosed as administration<br />
expenses, expected return on plan assets and interest cost are disclosed as<br />
interest income in the income statement and actuarial gains and losses of<br />
£14.2m (<strong>2006</strong>: £20.1m) are recognised in the period in which they occur as<br />
part of the Statement of recognised income and expense.<br />
The actual return on plan assets was £9.3m (<strong>2006</strong>: £52.5m).<br />
Changes in the present value of the defined benefit obligation are as follows:<br />
20<strong>07</strong> <strong>2006</strong><br />
£m £m<br />
Opening obligation (340.1) (261.1)<br />
Current service cost (9.4) (8.2)<br />
Past service cost (0.3) (0.3)<br />
Benefits paid 5.2 2.9<br />
Interest cost (17.0) (14.5)<br />
Actuarial losses (5.5) (58.9)<br />
Closing obligation (367.1) (340.1)