FSA Annual Report 2006/07 - Better Regulation Ltd

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Section five – Financial statements
FSA Annual Report 2006/07
The history of differences between expected and actual returns on plan assets
and gains and losses on scheme liabilities are as follows:
2007 2006 2005
Defined benefit obligation (£m) (367.1) (340.1) (261.1)
Fair value of plan assets (£m) 289.1 250.6 182.2
Net deficit (£m) (78.0) (89.5) (78.9)
Experience adjustments on scheme assets:
Amount (£m) (8.7) 38.8 2.4
percentage of scheme assets 3.0% 15.5% 1.3%
Experience gains and losses on scheme liabilities:
Amount (£m) (0.7) 0.1 (0.3)
percentage of the present value
of scheme liabilities 0% 0% 0%
The contribution rate for 2006/07 was 23.7% of pensionable earnings plus
£26.0m (75.5% of pensionable earnings) as an additional deficit reduction
contribution. The agreed contribution rate for 2007/08 is 23.0% of
pensionable earnings plus £2.5m (approximately 7.4% of pensionable
earnings) as an additional deficit reduction contribution.
Defined contribution scheme
The total expense recognised in the income statement of £8.7m (2006:
£7.9m) represents contributions payable to the plan by the FSA at rates
specified in the rules of the plan.
16. Accumulated deficit
£m
At 1 April 2005 (71.5)
Surplus for the year 7.5
Actuarial gains and losses for the year in respect
of the defined benefit pension scheme (20.1)
At 1 April 2006 (84.1)
Surplus for the year 16.9
Actuarial gains and losses for the year in
respect of the defined benefit pension scheme (14.2)
(81.4)
The Financial Services Authority is a company limited by guarantee. The
members of the company have agreed to contribute £1 each to the assets of
the company in the event of it being wound up.
17. Capital commitments
The FSA had entered into contracts at 31 March 2007 for capital
expenditure totaling £1.8m (2006: £0.5m), which are not provided for in the
accounts.