Imperial Chemical Industries (ICI)

Asset returns
Actual rates of return on assets will vary from the expected rates of return used to calculate the post-retirement benefit finance income. A comparison between the expected and actual long-term rates of return is disclosed in note 26, showing the actual less expected return on plan assets and reimbursement rights separately, in both absolute and percentage terms.

Contributions
The regular Company contributions to pension funds relating to active members of the funds are expected to be broadly in the range of £90-120m each year, subject to changes in contribution rates determined from updated actuarial assumptions, changes in numbers of employees and the numbers of early retirements.

In addition, recurring contributions are required to address funding shortfalls and in particular, as a result of the most recent funding valuation of the ICI UK Pension Fund, additional “top-up” contributions in respect of the funding deficit will be made at £122m per year for three years from 2007 to 2009, and £62m per year for five years from 2010 to 2014; and for the ICI UK Specialty Chemicals Fund, “top–up” contributions are recurring at £12m per year over the ten year period from 2006 to 2015. These contributions are subject to review at the triennial funding valuations for both funds, and could vary up or down depending on the outcomes of those valuations. Additionally, as a consequence of the Uniqema divestment, contributions totalling £48m will be made to the ICI UK Specialty Chemical Fund and the ICI UK Pension Fund and, as a consequence of the sale of the Quest business, the Company is expected to make a contribution to the ICI UK Specialty Chemicals Pension Fund of approximately £65m and a contribution to the ICI UK Pension Fund of approximately £138m.