Annex A* * *
Annex B
Royal Mail Pension Plan (RMPP) and Royal
Mail Senior Executives Pension Plan (RMSEPP), FRS 17 Surplus/deficit
position March 2002 to March 2005
| | |
£ million |
|
| 2002-03
| 2003-04 | 2004-05
|
|
| Surplus/(Deficit) at beginning of period |
272 | (4,684)
| (4,380) |
| Company contributions | 279
| 659 | 670
|
| Current service cost (based upon % payroll)
| (386) | (397)
| (483) |
| Settlement gain | 18
| — | (6)
|
| Curtailment loss (early leavers) | (119)
| (93) | (208)
|
| Accounting change in respect of joint venture
| — | —
| (10) |
| Other finance income | 281
| 41 | 59
|
| Actuarial gain/(loss) | (5,029)
| 94 | 410
|
| Surplus/(Deficit) at end of period FRS 17 |
(4,684) | (4,380)
| (3,948) |
| Change to IAS 19 | —
| — | (10)
|
| Surplus/(Deficit) at end of period IAS 19 |
— | —
| (3,958) |
|
Assumptions used by Royal Mail
|
| Assumptions % | 31 March 2002
| 30 March 2003 |
28 March 2004 | 27 March 2005
|
|
| Rate of increase of salaries | 3.80
| 3.55 | 4.10
| 4.20 |
| Rate of increase of pensions | 2.50
| 2.25 | 2.60
| 2.70 |
| Discount rate | 6.00
| 5.50 | 5.50
| 5.50 |
| Inflation assumption | 2.50
| 2.25 | 2.60
| 2.70 |
| Expected average rate of return on assets |
7.70 | 7.90
| 7.50 | 7.40
|
|
Breakdown of Actuarial gain/loss from 2002 to 2005
|
| 2002
| Mvt in
2002-03
| 2003 | Mvt in
2003-04
| 2004 | Mvt in
2004-05
| 2005 |
|
| £m
| £m | £m
| £m | £m
| £m | £m
|
| Equities | 12,670
| (2,964) | 9,706
| 2,466 | 12,172
| 1,211 | 13,383
|
| Bonds | 1,713
| (145) | 1,568
| 198 | 1,766
| 240 | 2,006
|
| Other | 1,307
| (394) | 913
| 363 | 1,276
| 702 | 1,978
|
| Total assets | 15,690
| (3,503) | 12,187
| 3,027 | 15,214
| 2,153 | 17,367
|
| Liabilities | (15,418)
| (1,453) | (16,871)
| (2,723) | (19,594)
| (1,721) | (21,315)
|
| Pension asset/(deficit) | 272
| (4,956) | (4,684)
| 304 | (4,380)
| 432 | (3,948)
|
| Other (net of cash and P&L) |
| (73) | |
(210) | | (22)
| |
| Actuarial gain/(loss) | |
(5,029) | | 94
| | 410 |
|
|
* * *
|
|
