|
|
 | | | |
- close
- close
- close
- close
| |||||||||
This excerpt taken from the ICI 20-F filed Apr 1, 2005. Pensions (SSAP 24) – Group
The Company and most of its subsidiaries operate retirement schemes which cover the majority of employees (including Directors) of the Group. ICI policy, where practicable, is to provide retirement benefits for new employees on a defined contribution basis. The Company pays pension contributions for each employee into an individual retirement account, which is used to provide pension benefits at retirement. This policy is now in place in the majority of countries in which ICI operates. However, retirement plans for most existing employees are generally of the defined benefit type under which benefits are based on employees’ years of service and average final remuneration and are funded through separate trustee-administered funds. Formal valuations of the Group’s main defined benefit schemes are undertaken regularly, by independent qualified actuaries, normally at least triennially and adopting the projected unit method. The actuarial assumptions used to calculate the projected benefit obligation of the Group’s pension schemes vary according to the economic conditions of the country in which they are situated. For the Group’s major plans the principal weighted average rates used were:
In arriving at the valuations of the Group’s major defined benefit schemes, fund assets were valued at market values on the date of valuation of each fund. The value of these assets was £7,127m (2003 £7,083m) and was sufficient to cover 92% (2003 91%) of the benefits that had accrued to members after allowing for expected future increases in earnings. The total pension cost for the Group for 2004 was £128m (2003 £120m; 2002 £89m). Accrued pension costs, which are included in other creditors (note 19), amounted to £33m (2003 £37m). Provisions mainly for the benefit obligations of a small number of unfunded plans amounted to £125m (2003 £134m) and are included in provisions for liabilities and charges – pensions (note 21). Prepaid pension costs amounting to £530m (2003 £507m) are included in debtors (note 16). ICI Pension Fund
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).
This excerpt taken from the ICI 6-K filed Mar 16, 2005. Pensions (SSAP 24) – Group
The Company and most of its subsidiaries operate retirement schemes which cover the majority of employees (including Directors) of the Group. ICI policy, where practicable, is to provide retirement benefits for new employees on a defined contribution basis. The Company pays pension contributions for each employee into an individual retirement account, which is used to provide pension benefits at retirement. This policy is now in place in the majority of countries in which ICI operates. However, retirement plans for most existing employees are generally of the defined benefit type under which benefits are based on employees’ years of service and average final remuneration and are funded through separate trustee-administered funds. Formal valuations of the Group’s main defined benefit schemes are undertaken regularly, by independent qualified actuaries, normally at least triennially and adopting the projected unit method. The actuarial assumptions used to calculate the projected benefit obligation of the Group’s pension schemes vary according to the economic conditions of the country in which they are situated. For the Group’s major plans the principal weighted average rates used were:
In arriving at the valuations of the Group’s major defined benefit schemes, fund assets were valued at market values on the date of valuation of each fund. The value of these assets was £7,127m (2003 £7,083m) and was sufficient to cover 92% (2003 91%) of the benefits that had accrued to members after allowing for expected future increases in earnings. The total pension cost for the Group for 2004 was £128m (2003 £120m; 2002 £89m). Accrued pension costs, which are included in other creditors (note 19), amounted to £33m (2003 £37m). Provisions mainly for the benefit obligations of a small number of unfunded plans amounted to £125m (2003 £134m) and are included in provisions for liabilities and charges – pensions (note 21). Prepaid pension costs amounting to £530m (2003 £507m) are included in debtors (note 16). ICI Pension Fund
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).
| EXCERPTS ON THIS PAGE:
|
| |||||||
