Annual Report & Accounts 2012 - Euromoney Institutional Investor ...

Euromoney Institutional Investor PLC Annual Report and Accounts 2012
www.euromoneyplc.com
Notes to the Consolidated
Financial Statements continued
27 Retirement benefit schemes continued
Euromoney PensionSaver and Euromoney Pension Plan
Euromoney PensionSaver was launched on October 1 2008 to replace the Euromoney Pension Plan as the principal pension arrangement offered to
employees of the group. Under both plans, contributions are paid by the employer and employees. However, Euromoney PensionSaver is a group
personal pension arrangement rather than the trust-based arrangement used by the Euromoney Pension Plan. Under both schemes, employees are
able to contribute a minimum of 3% of salary with an equal company contribution in the first three years of employment and thereafter at twice the
employee contribution rate, up to a maximum employer contribution of 10% of salary. The Euromoney Pension Plan is a part of the DMGT Pension
Trust, an umbrella trust under which DMGT UK trust-based defined contribution plans are held. Insured death benefits previously held under this trust
have been transferred to a new trust-based arrangement specifically for life assurance purposes.
When the process of transferring out the remaining assets of the Euromoney Pension Plan has been completed the Plan will be wound up.
Assets of both plans are invested in funds selected by members and held independently from the company’s finances. The investment and administration
of both plans is undertaken by Fidelity Pension Management.
Metal Bulletin Group Personal Pension Plan
The Metal Bulletin Group Personal Pension Plan is a defined contribution arrangement under which contributions are paid by the employer and
employees. The scheme is closed to new members.
The plan’s assets are invested under trust in funds selected by members and held independently from the company’s finances. The investment and
administration of the plan is undertaken by Skandia Life Group.
Private schemes
Institutional Investor, Inc. contributes to a 401(k) savings and investment plan for its employees which is administered by an independent investment
provider. Employees are able to contribute up to 15% of salary with the company matching up to 50% of the employee contributions, up to 5% of
salary.
The company also provides access to a stakeholder pension plan for relevant employees who are not eligible for other pension schemes operated by
the group. These arrangements will be superseded when automatic enrolment begins in 2013.
Harmsworth Pension Scheme
The Harmsworth Pension Scheme is a defined benefit scheme operated by DMGT. The scheme is closed to new entrants. Existing members still in
employment can continue to accrue benefits in the scheme on a cash basis, with members using this cash account to purchase an annuity at retirement.
A full actuarial valuation of the scheme is carried out triennially by the Scheme Actuary. The latest valuation was completed as at March 31 2010. As
a result of this valuation, DMGT agreed to make annual contributions of 10% or 15% of members’ basic pay (depending on membership section).
In addition, DMGT has agreed a Recovery Plan involving a series of annual funding payments amounting to £231.4 million over a period to end on
October 5 2023. In accordance with this agreement, a payment of £24.8 million was made on October 5 2011 and a payment of £21.0 million was
made on September 28 2012. A further payment of £3.0 million was made post year end on October 5 2012. Both the ongoing contributions and
Recovery Plan will be reviewed at the next triennial funding valuation of the main schemes due to be completed with an effective date March 31 2013.
DMGT has enabled the trustee of the scheme to acquire a beneficial interest in a Limited Partnership investment vehicle (LP). The LP has been designed
to facilitate payment of part of the deficit funding payments described above to the scheme over the next 15 years. In addition, the LP is required to
make a final payment to the principal scheme of £150 million or such lesser amount as may equate to the funding deficit within the scheme on an
ongoing actuarial valuation basis at the end of the 15 year period. For funding purposes, the interest held by the trustee in the LP will be treated as an
asset of the scheme and reduce the actuarial deficit within the scheme. However, under IAS 19 the LP is not included as an asset of the scheme and
therefore is not included in the disclosures below. In exchange for its interest in the LP, the trustee has allowed the letters of credit previously provided
by DMGT to be cancelled.
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