Ardagh Glass Finance plc - Irish Stock Exchange

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (Continued)
18. Retirement benefit obligations (Continued)
The impact of increasing the expected longevity for pension members by one year would result in
an increase in the Group Balance Sheet liability of A4.1 million at 31 December 2008 together with an
increase in the charge to the Group Income Statement of A0.2 million for the year.
Rockware
When Rockware was acquired in April 1999 the Group took over responsibility to fund the past
service cost of the then serving employees but not retirees. The vendor retained the responsibility to
fund the post retirement benefits of former employees of Rockware. In consideration for taking over
the past service liability for serving employees the Rockware pension scheme got a financial settlement
which equated to the liability it assumed. Because at that time the Scheme had no retirees and the
remaining working life of the majority of employees was more than a decade, the funds were invested
in equities with the objective of earning a high rate of return on the scheme assets and thereby under
pin the benefit entitlements of employees. The demographics of the scheme have not substantially
changed since inception, i.e. relatively few retirees and the remaining working life of the majority of the
employees exceeds a decade. Hence the majority of the scheme assets continue to be invested in
equities.
Heye
When Heye was acquired in March 2003 the Group took over responsibility to fund eighteen
months from the date of acquisition, past service cost of the then serving employees but not retirees.
Redfearn
When Ardagh acquired Redfearn it only took responsibility for pension liabilities and the funding
thereof relating to the future service of the then serving employees from the date of acquisition.
Responsibility for the past service of the then serving employees and former employees of Redfearn
and the funding thereof to that date was retained by the vendor. Therefore the Redfearn pension
scheme has a limited impact on the Group Financial Statements.
Rexam plc’s Glass Division
When Ardagh acquired Rexam plc’s Glass Division in June 2007 it took responsibility for all
pension liabilities including the responsibility to fund the post retirement benefits of former employees
and the past service cost of the then serving employees and retirees.
19. Called up share capital
2008 2007
E’000 E’000
Ardagh Glass Holdings Ltd
Authorised
1,000,000 ordinary shares of A1 each ...................................... 1,000 1,000
Issued
2 ordinary shares of A1 each ............................................ — —
F-52