FSA Annual Report 2006/07 - Better Regulation Ltd

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Section five – Financial statements
FSA Annual Report 2006/07
A small number of current and former employees have benefit promises that
cannot be delivered entirely through the tax-approved scheme described
above. At 31 March 2007 the liability is £1.9m (2006: £1.8m) to cover the
cost of these promises. An amount of £0.1m (2006: £0.4m) is included in the
total pension cost for the year in note 6, representing the value of the
additional benefits accrued.
Amounts recognised in the income statement in respect of the defined benefit
plan are as follows:
2007 2006
£m £m
Current service cost 9.4 8.2
Past service cost 0.3 0.3
Administration expenses 9.7 8.5
Expected return on plan assets 18.0 13.7
Interest on scheme liabilities (17.0) (14.5)
Other finance income / (costs) 1.0 (0.8)
Current service costs and past service costs are disclosed as administration
expenses, expected return on plan assets and interest cost are disclosed as
interest income in the income statement and actuarial gains and losses of
£14.2m (2006: £20.1m) are recognised in the period in which they occur as
part of the Statement of recognised income and expense.
The actual return on plan assets was £9.3m (2006: £52.5m).
Changes in the present value of the defined benefit obligation are as follows:
2007 2006
£m £m
Opening obligation (340.1) (261.1)
Current service cost (9.4) (8.2)
Past service cost (0.3) (0.3)
Benefits paid 5.2 2.9
Interest cost (17.0) (14.5)
Actuarial losses (5.5) (58.9)
Closing obligation (367.1) (340.1)