Setting new standards - Friends Life
Setting new standards - Friends Life
Setting new standards - Friends Life
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PARENT COMPANY ACCOUNTS<br />
ABBREVIATIONS AND DEFINITIONS<br />
Notes to the consolidated accounts continued<br />
10. Staff pension schemes continued<br />
(iii) Changes in the present value of obligations of defined benefit schemes<br />
2006 2005<br />
£m £m<br />
Present value of obligations at 1 January 164 114<br />
Interest cost 8 6<br />
Current service cost 4 3<br />
Contributions by plan participants - -<br />
Actuarial (gains)/losses (4) 42<br />
Benefits paid (3) (2)<br />
Past service cost - 1<br />
Transfer in respect of The Netherlands scheme 11 -<br />
Present value of obligations at 31 December 180 164<br />
(iv) Analysis of defined benefit obligations<br />
2006 2005<br />
£m £m<br />
Wholly unfunded plans 2 2<br />
Wholly or partly funded plans 178 162<br />
180 164<br />
The profile of the obligations is analysed as follows:<br />
2006 2005<br />
£m £m<br />
Active members 57 51<br />
Deferred members 83 76<br />
Pensioners 40 37<br />
180 164<br />
(v) Changes in present value of defined benefit plan assets<br />
2006 2005<br />
£m £m<br />
Fair value of plan assets at 1 January 116 96<br />
Expected return on plan assets 8 6<br />
Actuarial gains 2 11<br />
Employer contributions 4 5<br />
Benefits paid (3) (2)<br />
Transfer in respect of The Netherlands scheme 7 -<br />
Fair value of plan assets at 31 December 134 116<br />
<strong>Friends</strong> Provident Annual Report & Accounts 2006 105