A15 Pension obligations

A15 – Pension obligations

(a) Pension scheme deficits in the consolidated statement of financial position

On the consolidated statement of financial position, the amount described as provisions includes the pension scheme deficit and comprises:

	2009 £m	Restated 2008 £m	Restated 2007 £m
Deficits in the staff pension schemes	1,707	613	205
Other obligations to staff pension schemes – insurance policies issued by Group companies	1,351	1,402	1,025
Total IAS 19 obligations to staff pension schemes	3,058	2,015	1,230
Restructuring provision	198	253	135
Other provisions	724	722	572
	3,980	2,990	1,937
Less amounts classified as held for sale	—	(6)	—
Total	3,980	2,984	1,937

(b) Movements in the scheme deficits and surpluses

Movements in the pension schemes’ deficits and surpluses comprise:

	2009	2008
	Pension scheme deficits £m	Pension scheme deficits £m
Deficits in the schemes at 1 January	(613)	(178)
Employer contributions	294	620
Current and past service cost	(156)	(163)
Gains/(losses) on curtailments and settlements	49	(3)
Credit/(charge) to investment income	(125)	121
Other actuarial losses	(1,158)	(987)
Exchange rate movements on foreign plans	2	(23)
Deficits in the schemes at 31 December	(1,707)	(613)

(c) Pensions expenses

(i) Recognised in the income statement

	2009 £m	2008 £m
Current service cost	(131)	(162)
Past service cost	(25)	(1)
Gains on curtailments	38	(3)
Gains on settlements	11	—
Total pension cost charged to net operating expenses	(107)	(166)
Expected return on scheme assets	466	706
Less: Income on insurance policy assets accounted for elsewhere	(58)	(64)
	408	642
Interest charge on scheme liabilities	(591)	(585)
(Charge)/credit to investment income	(183)	57
Total charge to income	(290)	(109)

(ii) Recognised in the statement of comprehensive income

	2009 £m	2008 £m
Expected return on scheme assets	(466)	(706)
Actual positive/(negative) return on these assets	1,009	(1,245)
Actuarial gains/(losses) on scheme assets	543	(1,951)
Less: losses on insurance policy assets accounted for elsewhere	18	58
Actuarial gains/(losses) on admissible assets	561	(1,893)
Experience gains arising on scheme liabilities	77	105
Changes in assumptions underlying the present value of the scheme liabilities	(1,778)	859
Actuarial losses recognised in other comprehensive income	(1,140)	(929)

The loss arising from changes in assumptions in 2009 reflects the impact of lower discount rates for liabilities across all schemes and higher pension and salary increase assumptions in the UK and Netherlands, together with the strengthening of mortality assumptions in Ireland.

The cumulative amount of actuarial gains and losses on the pension schemes recognised in other comprehensive income since
1 January 2004 (the date of transition to IFRS) is a loss of £2,230 million at 31 December 2009 (2008: loss of £1,090 million).