|
The following position
for the main pension scheme is computed in accordance
with US GAAP pension accounting rules under SFAS No. 87
and SFAS No. 88, the effect of which is shown in the above
reconciliation statements.
The pension cost determined under SFAS No. 87 was calculated
by reference to an expected long-term rate of return on
scheme assets of 6.9% (2002 – 6.5%, 2001 – 6.25%). The
components of the pension cost for the main pension scheme
comprised:
|
2003 |
|
2002 |
|
2001 |
|
|
£m |
|
£m |
|
£m |
|
|
| Service
cost |
453 |
|
564 |
|
580 |
|
| Interest
cost |
1,707 |
|
1,739 |
|
1,673 |
|
| Expected
return on scheme assets |
(1,813 |
) |
(1,863 |
) |
(1,850 |
) |
| Amortisation
of prior service costs |
24 |
|
24 |
|
24 |
|
| Amortisation
of net obligation at date of limited application
of SFAS No. 87 |
52 |
|
52 |
|
52 |
|
| Recognised
gains |
(22 |
) |
(67 |
) |
(133 |
) |
| Additional
cost of termination benefits |
60 |
|
140 |
|
349 |
|
|
| Pension
cost for the year under US GAAP |
461 |
|
589 |
|
695 |
|
|
The
information required to be disclosed in accordance with
SFAS No. 132 concerning the funded status of the main
scheme at 31 March 2002 and 31 March 2003, based on
the valuations at 1 January 2002 and 1 January 2003,
respectively, is given below.
|
|
|
2003 |
|
| Minimum
liability, intangible asset and other comprehensive
income |
|
|
£m |
|
|
| Plan
assets at fair value |
|
|
22,757 |
|
| Accumulated
benefit obligation |
|
|
28,551 |
|
|
| Minimum
liability |
|
|
5,794 |
|
| Net
amount recognised at end of year |
|
|
(2,497 |
) |
|
| Minimum
additional liability |
|
|
3,297 |
|
| Intangible
asset as at 31 March 2003: |
|
|
|
|
| Unrecognised
net transition obligation |
|
|
(2 |
) |
| Unrecognised
prior service cost |
|
|
(103 |
) |
|
| Accumulated
other comprehensive income |
|
|
3,192 |
|
|
|
|
|
|
|
| Changes
in benefit obligation |
2003 |
|
2002 |
|
|
£m |
|
£m |
|
|
|
|
|
|
|
| Benefit
obligation at the beginning of the year |
29,097 |
|
31,184 |
|
| Service
cost |
453 |
|
564 |
|
| Interest
cost |
1,707 |
|
1,739 |
|
| Employees’
contributions |
156 |
|
180 |
|
| Additional
cost of termination benefits |
60 |
|
140 |
|
| Actuarial
movement |
152 |
|
(3,428 |
) |
| Other
changes |
13 |
|
27 |
|
| Benefits
paid or payable |
(1,361 |
) |
(1,309 |
) |
|
| Benefit
obligation at the end of the year |
30,277 |
|
29,097 |
|
|
|
|
|
|
|
| Changes
in scheme assets |
2003 |
|
2002 |
|
|
£m |
|
£m |
|
|
|
|
|
|
|
| Fair
value of scheme assets at the beginning of the year |
26,597 |
|
29,031 |
|
| Actual
return on scheme assets |
(3,255 |
) |
(2,355 |
) |
| Employers’
contributionsa |
607 |
|
1,023 |
|
| Employees’
contributions |
156 |
|
180 |
|
| Other
changes |
13 |
|
27 |
|
| Benefits
paid or payable |
(1,361 |
) |
(1,309 |
) |
|
| Fair
value of scheme assets at the end of the year |
22,757 |
|
26,597 |
|
|
|
|
|
|
|
| Funded
status under US GAAP |
2003 |
|
2002 |
|
|
£m |
|
£m |
|
|
|
|
|
|
|
| Projected
benefit obligation in excess of scheme assets |
(7,520 |
) |
(2,500 |
) |
| Unrecognised
net obligation at date of initial application of
SFAS No. 87b |
2 |
|
54 |
|
| Unrecognised
prior service costsc |
103 |
|
127 |
|
| Other
unrecognised net actuarial (gains) losses |
4,918 |
|
(324 |
) |
|
| Net
amount recognised under US GAAP |
(2,497 |
) |
(2,643 |
) |
|
| a
The
employers’ contributions for the year ended 31 March
2003 includes special contributions of £200 million
paid on 11 December 2002 and £129 million paid on
12 December 2002 (2002 – £300 million paid on 21
November 2001 and £300 million paid on 4 December
2001). |
| b
The
unrecognised net obligation at the date of initial
application is being amortised over 15 years from
1 April 1988. |
| c
Unrecognised
prior service costs on scheme benefit improvements
are being amortised over periods of 15 or 16 years
commencing in the years of the introduction of the
improvements. |
| |
The
benefit obligation for the main pension scheme was determined
using the following assumptions at 1 January 2002 and
1 January 2003:
|
2003
per annum |
2002
per annum |
|
|
% |
% |
|
|
| Discount
rate |
5.6 |
6.0 |
|
| Rate
of future pay increases |
3.8 |
4.0 |
|
| Rate
of future pension increases |
2.25 |
2.5 |
|
|
The accumulated benefit
obligation at 31 March 2003 was £28,551 million
(2002 - £27,127 million).
|
