: 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%.
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