Tullett Prebon plc Annual Report 2010 The mortality assumptions are based on standard mortality tables which allow for future mortality improvements and are the same as those adopted for the 2010 funding valuations. For the Tullett Liberty Pension Scheme the assumptions are that a member who retires in future at age 60 will live on average for a further 28 years (2009: 29 years) after retirement if they are male and for a further 31 years (2009: 31 years) after retirement if they are female. For the Prebon Yamane (Ex K-W) Pension Scheme the equivalent assumptions are 30 years (2009: 30 years) for males and 31 years (2009: 31 years) for females. Current pensioners are assumed to have a consistent but generally shorter life expectancy based on their current age. Expected return in 2011 on 31 December 2010 scheme assets % Expected return in 2010 on 31 December 2009 scheme assets % Expected return in 2009 on 31 December 2008 scheme assets % 2010 Assets £m 2009 Assets £m 2008 Assets £m Equities Corporate bonds Cash and other Weighted average return* Total fair value of schemes’ assets 7.01 5.30 0.80 6.64 151.8 10.5 7.2 169.5 7.40 5.70 0.70 7.05 123.5 9.7 4.5 137.7 6.70 6.10 2.70 6.41 92.3 8.2 6.4 106.9 GOVERNANCE SHAREHOLDER INFORMATION FINANCIAL STATEMENTS * The overall expected rate of return on the schemes’ assets is a weighted average of the individual expected rates of return on each asset class. The actual gain on schemes’ assets in 2010 was £27.7m (2009: gain on schemes’ assets £26.2m). The amount included in the balance sheet arising from the Group’s obligations in respect of the UK defined benefit schemes was as follows: 2010 £m 2009 £m Present value of funded defined benefit obligations Fair value of schemes’ assets Surplus/(deficit) in schemes The amounts recognised in profit and loss in respect of the UK defined benefit schemes were as follows: (145.9) 169.5 23.6 (139.0) 137.7 (1.3) 2010 £m 2009 £m Interest cost on schemes’ liabilities Expected return on schemes’ assets Recognised in profit and loss Movements in the present value of the defined benefit obligations in the current period were as follows: (7.8) 9.4 1.6 (7.0) 6.5 (0.5) 2010 £m 2009 £m At 1 January Interest cost on schemes’ liabilities Actuarial losses Benefits paid/transfers out At 31 December (139.0) (7.8) (3.8) 4.7 (145.9) (115.4) (7.0) (20.2) 3.6 (139.0) 81 CHAIRMAN’S STATEMENT & BUSINESS REVIEW
