Untitled

Notes to the Financial Statements (continued)
30. Pension arrangements
is the EMI Group Pension Fund ('the Fund'). Staff engaged outside the UK are covered by local anangments whch, in the case of the
Group xhemes, are largely of the defined contribution type. Ihe asseb of EMI GroupS pension schemes are held mainly in separate
trustee-administercd f unds.
'The Fund is based in the UK and is of the defined benefit type. lhe Fund is open to all permanent employees over the age of 18
employed by the Company and certain subsidiaries in the UK. BenefiB provided by the Fund are-based on final pensionable pay.
pensiohs payable from theFund are guaranteed to rncrease by 57o per annum, or by the cost of living ff less. Membe6 contribute
to the Fund at th€ rate of 4olo of pensonable pay.
the latest available actuarial valuation of the Fund was made by a qualffied actuary as at I April 1997 using the projected unttmethod.
At that date, the market value of the assets of the Fund was taken to be f809.8m. The actuanal value of the asse$ was sufficient to
couer 121% of the value of the benefils ttrat had accrued to the members, after allowing for asumed increases in earnings. Part of the
surplus disclosed by the 1997 valuation was allocated towards a reduction of employer contributions Hc,vv the long-term rate. the
balance being carried fon,uard as a reserve in the Fund.
Emplqpr expense in respect of the Fund has been calculated in accordance with Statement of Standard Accountinq Practice 24 -
aciot inting tor ftnsion Coss (SSnp Za). On the basis of actuarial advice, it is calculated that the emplqpr expense would represent.
a oedit toihe profit and loss account on full application of SSAP 24 principles. Hou,ever, for reasons of conservatism, such expense has
been taken as nil for the two years ended 3'l March 2000. The long-term fnancial assumptions used to calculate employer expense
under SSAP 24 are shown belcuu:
G.o\^/th €hi€ to nvestrEnt ,elum
Rate of imrestment return
Rate of pay increas€s
Rate of pension increases
Rate o{ dMdend go\^/th
Theselates included allo,,uance for the effects of the tax credit changes introduced b/ the Finance (Nlo. 2) Act 1997
8.0olo P.a.
6.0% p.a.
3.5o/o P.a.
4.5o/o p.a.
EmplqEr contributions of fl2.9m (1999: f l 1 .6m) were charged to the profit and loss account. These contributions pnmarily related
io 6ueiiias schemes aM were determined in rcordance whh local practice. Other post retirement bene{it e\penses of f1 .1m
(1999: fnil)uere also charged to the profit and los account.