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: notes to the accounts :

   
 

10. Employee information

The details of the emoluments of the directors of Pearson plc are shown in the personnel committe report and form part of these audited financial statements.

all figures in £ millions
1999
1998
 
 
 
Staff costs
 
 
Wages and salaries
702
476
Social security costs
75
54
Post-retirement costs
26
13



 
803
543



 

 
uk
us
other
total
Average number employed 1999
 
 
 
 
FT Group
2,158
1,034
1,790
4,982
Pearson Education
1,761
9,970
2,394
14,125
The Penguin Group
749
1,866
614
3,229
Pearson Television
617
105
550
1,272
Other
171
93
––
264


Continuing operations
5,456
13,068
5,348
23,872


Average number employed 1998
 
 
 
 
FT Group
2,780
832
1,858
5,470
Pearson Education
764
3,171
1,489
5,424
The Penguin Group
989
1,728
601
3,318
Pearson Television
585
113
450
1,148
Other
171
48
––
219


Continuing operations
5,289
5,892
4,398
15,579
Discontinued operations
2,614
131
76
2,821


 
7,903
6,023
4,474
18,400


 

all figures in £ millions
1999
1998
     
Post-retirement costs
 
 
Defined benefit pension schemes
 
 
UK Group plan: regular pension cost
8
8
UK Group plan: amortisation of surplus
(3)
(9)



Net pension charge/(credit)
5
(1)
Other defined benefit pension schemes
11
6
Defined contribution pension schemes
6
5
Medical benefits
4
3



 
26
13



Pension schemes The Group operates a number of pension schemes throughout the world. The major schemes are self-administered and the schemes’ assets are held independently of the Group. Pension costs are assessed in accordance with the advice of independent qualified actuaries. The principal schemes are primarily of the defined benefit type. There is also a closed defined benefit scheme in the UK, which now receives neither employers’ nor members’ contributions, and a number of other defined benefit and defined contribution schemes, principally overseas.

The results of the most recent actuarial valuation performed as at 1 January 1999, using the projected unit method of valuation, of the principal funded UK scheme, and the principal assumptions are shown in the table in note 10. The net assets of the UK Group plan at 31 December 1999 are included in the pension plan accounts at £1,192m (unaudited).

 

  uk group plan
Assets at market value at latest full actuarial valuation on 1 January 1999 £1,038m
Real return on investments per annum 3.9%
Real increase in earnings per annum 1.9%
Real increase in pensions in payment per annum 0.0%
Real increase in dividends per annum 1.0%
Level of funding• 105%

Actuarial value of assets expressed as a percentage of the actuarial value of the liabilities.

In view of these results, all employers’ contributions remain suspended for the time being and the valuation surplus is being apportioned, in accordance with SSAP24, over the expected remaining service lives of the current employees.

The total market value of the assets of the non-UK defined benefit schemes (mainly in the US), valued this year, was £64m (1998: £63m).

Other post-retirement benefits The Group provides certain health care and life assurance benefits principally for retired US employees and their dependants. These plans are unfunded. Retirees are eligible for participation if they meet certain age and service requirements. Plans that are available vary based upon the business division in which the retiree worked. Plan choices and retiree contributions are dependent on retirement date, business unit, option chosen and length of service.

The principal assumptions affecting the provision for other post-retirement benefits were: medical inflation rates of between 5.0% and 7.0% and a discount rate of 6.75%.

1999 Annual Report
* Introduction
* Chairman's letter
* Chief executive's review
* The Pearson Goals
* Internet Goals
* The Results
* Financial Review
* Financial Policy
* Directors' Report
* Personnel Committee Report
* Pearson Education
* Penguin Group
* Financial Times Group
* Pearson Televison
* Recolétos
* Lazard
* Consolidated profit and loss account
* Consolidated balance sheet
* Consolidated statement of cash flows
* Statement of total recognised gains and losses
* Note of historical cost profits and losses
* Reconciliation of movements in equity shareholders' funds
* Report to the Auditors to the Members of Pearson plc
* Principal subsidiaries and associates
* Five year summary
* Shareholder information
* Notes to the accounts
 

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