Financial Statements - International Planned Parenthood Federation
Financial Statements - International Planned Parenthood Federation
Financial Statements - International Planned Parenthood Federation
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60 IPPF <strong>Financial</strong> <strong>Statements</strong> 2009<br />
20 Pension schemes (continued)<br />
Scheme assets<br />
The fair value of the scheme’s assets, which are not intended to be realised in the short term and may be subject<br />
to significant change before they are realised, and the present value of the scheme’s liabilities, which are derived from<br />
cash flow projections over long periods and thus inherently uncertain, were:<br />
2009<br />
$’000<br />
2008<br />
$’000<br />
2007<br />
$’000<br />
Equities 17,455 12,378 19,668<br />
Bonds 16,823 12,386 13,755<br />
Cash 524 2,185 3,170<br />
Total market value of assets 34,802 26,949 36,593<br />
Present value of scheme liability (42,775) (31,074) (46,929)<br />
Deficit in scheme – Net pension liability (7,973) (4,125) (10,336)<br />
The expected rates of return on the assets in the scheme were:<br />
Long-term rate<br />
of return<br />
expected at<br />
31/12/2009<br />
Long-term rate<br />
of return<br />
expected at<br />
31/12/2008<br />
Long-term rate<br />
of return<br />
expected at<br />
31/12/2007<br />
Equities 7.5% 8.4% 8.0%<br />
Bonds 6.5% 4.9% 4.5%<br />
Cash 4.5% 4.9% 4.75%<br />
Gilts 4.5% – –<br />
Property 7.5% – –<br />
Movement in pension fund liability during the year:<br />
2009<br />
$’000<br />
2008<br />
$’000<br />
Deficit in scheme at 1 January 2008 (4,125) (10,336)<br />
Employer’s current service cost – –<br />
Employer’s contributions 1,516 4,846<br />
Other finance charge (260) (148)<br />
Actuarial gain/(loss) (4,738) (530)<br />
Exchange rate movement (366) 2,043<br />
Deficit in scheme at 31 December 2009 (7,973) (4,125)<br />
The scheme closed to future accrual on 1 September 2007, with all active members being given deferred pensions<br />
at that date. This means that benefits for those members now increase broadly in line with price inflation in future.<br />
Previously, these benefits increased in line with salary.<br />
The exchange rate movement represents the difference in the exchange rate used to value the balance sheet in 2008<br />
and 2009.<br />
The actuary has confirmed that the valuations made above under the requirements of FRS 17 do not indicate that<br />
there is an immediate funding requirement or that there is any need to change the current funding rates made by the<br />
employer to the pension scheme.<br />
The pension fund liability of $7.973 million does not exceed the unrestricted funds balance.
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