IFRS condensed financial statements
A14 - Pension schemes
On the condensed consolidated statement of financial position, the amount described as provisions includes the pension scheme deficit and comprises:
(a) Pension scheme deficits in condensed consolidated statement of financial position
|
30 June 2009 £m |
30 June 2008 £m |
31 December 2008 £m |
|
|---|---|---|---|
| Deficits in the staff pension schemes | 1,988 | 543 | 613 |
| Other obligations to staff pension schemes - insurance policies issued by group companies1 | 1,234 | 1,109 | 1,402 |
| Total IAS 19 obligations to staff pension schemes | 3,222 | 1,652 | 2,015 |
| Restructuring provisions | 208 | 182 | 253 |
| Other provisions | 542 | 578 | 722 |
| Less: amounts classified as held for sale | (17) | (14) | (6) |
| Total provisions | 3,955 | 2,398 | 2,984 |
1 Pension assets in our Dutch pension schemes include insurance policies which are non-transferable under the terms of IAS 19 so have been treated as other obligations to staff pension schemes within provisions above.
(b) Movements in the scheme deficits and surpluses
Movements in the pension schemes' deficits and surpluses comprise:
|
30 June 2009 £m |
31 December 2008 £m |
|
|---|---|---|
| Net deficits in the schemes at 1 January | (613) | (178) |
| Employer contributions | 186 | 620 |
| Current and past service cost (see (c) below) | (80) | (163) |
| Losses on curtailments (see (c) below) | 13 | (3) |
| (Charge)/credit to investment income (see (c) below) | (59) | 121 |
| Other actuarial losses (see (c) below) | (1,456) | (987) |
| Exchange rate movements on foreign plans | 21 | (23) |
| Net deficits in the schemes at 30 June | (1,988) | (613) |
(c) Pension expense
(i) Recognised in the income statement
|
30 June 2009 £m |
30 June 2008 £m |
31 December 2008 £m |
|
|---|---|---|---|
| Current service cost | (65) | (83) | (162) |
| Past service cost | (15) | - | (1) |
| Gains/(losses) on curtailments | 13 | (1) | (3) |
| Total pension cost charged to net operating expenses | (67) | (84) | (166) |
| Expected return on scheme assets | 238 | 315 | 706 |
| Less: Income on insurance policy assets accounted for elsewhere (see (iii) above) | (29) | (30) | (64) |
| 209 | 285 | 642 | |
| Interest charge on scheme liabilities | (297) | (288) | (585) |
| (Charge)/credit to investment income | (88) | (3) | 57 |
| Total charge to income | (155) | (87) | (109) |
(ii) Recognised in the statement of comprehensive income
|
30 June 2009 £m |
30 June 2008 £m |
31 December 2008 £m |
|
|---|---|---|---|
| Expected return on scheme assets | (238) | (315) | (706) |
| Actual negative return on these assets | (318) | (683) | (1,245) |
| Actuarial losses on scheme assets | (556) | (998) | (1,951) |
| Less: losses on insurance policy assets accounted for elsewhere | 76 | 78 | 58 |
| Actuarial losses on admissible assets | (480) | (920) | (1,893) |
| Experience gains arising on scheme liabilities | 1 | 66 | 105 |
| Changes in assumptions underlying the present value of the scheme liabilities | (901) | 164 | 859 |
| Actuarial losses recognised in the statement of comprehensive income | (1,380) | (690) | (929) |
