Imperial Chemical Industries (ICI)

The latest actuarial valuation of the Fund, as at 31 March 2003, disclosed a solvency ratio of 93% and the Company has agreed to make a further nine annual payments into the Fund of £62m per annum from 2004 to 2012, subject to a review at the next valuation. As from September 2004, the Company has also provided an asset-backed guarantee, via a wholly owned subsidiary, Receivables Funding Ltd, specifically incorporated to provide the guarantee for £250m to support its commitments to the Fund (see note 40). The deficit, together with the prepayment, is taken into account in arriving at the employer’s pension costs charged in the accounts by being amortised as a percentage of pensionable emoluments over the expected working lifetime of existing members. In 2004 this gave rise to a SSAP 24 charge of £52m (2003 £42m).

The latest actuarial valuation of the Fund, as at 31 March 2003, disclosed a solvency ratio of 93% and the Company has agreed to make a further nine annual payments into the Fund of £62m per annum from 2004 to 2012, subject to a review at the next valuation. As from September 2004, the Company has also provided an asset-backed guarantee, via a wholly owned subsidiary, Receivables Funding Ltd, specifically incorporated to provide the guarantee for £250m to support its commitments to the Fund (see note 40). The deficit, together with the prepayment, is taken into account in arriving at the employer’s pension costs charged in the accounts by being amortised as a percentage of pensionable emoluments over the expected working lifetime of existing members. In 2004 this gave rise to a SSAP 24 charge of £52m (2003 £42m).