Pension provisions and surplus

Pension provisions and surplus

Defined benefit plans

In 2007, the most significant change was the reduction in the pension deficit in both the Amey Group (recognised liability of 241 million euro in 2006 and 92 million euro in 2007) and the BAA Group, which has even generated a pension plan surplus of 165 million euro recognised in assets, as compared with a provision

In 2007, the most significant change was the reduction in the pension deficit in both the Amey Group (recognised liability of 241 million euro in 2006 and 92 million euro in 2007) and the BAA Group, which has even generated a pension plan surplus of 165 million euro recognised in assets, as compared with a provision of 332 million euro in 2006. This is due to the review of the actuarial assumptions during the year, giving rise to a reduction in obligations assumed from 3,478 million euro in 2006 to 2,918 million euro in 2007. This is mainly attributable to the increase in discount rates (5.20% in 2006 and 5.80% in 2007).

The value of plan assets rose in local currency (sterling) terms due to the growth in forecast return on assets (5%-8% in 2006 to 5.5%-8.2% in 2007), although this increase is virtually offset by the impact of euro-sterling exchange differences.

Additionally, the Cespa Group has a number of retirement and length-of-service awards arranged by means of a single, fixed annual premium, which amounted to 0.6 million euro in 2007.

Amounts taken to equity in respect of actuarial gains and losses in 2007 totalled 98 million euro in the Amey Group (49 million euro in 2006) and 508 million euro in the BAA Group (-123 million euro in 2006).

Set out below is an analysis of these pension plans for 2007 and 2006:

 Pension plans

In addition to the above-mentioned defined benefit plans, the Swissport Group has pension plans. The main features of which are set out below:

 Swissport Group pension plans

As regards mortality assumptions, the BAA Group's pension obligations are calculated using the actuarial mortality tables, entailing an estimated life expectancy of between 84.8 and 85.9 years. In the case of the Amey Group, life expectancy is estimated at between 82 and 87 years of age for pension plan purposes.

Set out below is a sensitivity analysis showing the impact on results and equity of a change of 50 basis points in the discount rate:

 Impact on results and equity

Defined contribution plans

The Group, through the BAA Group, has three defined contribution plans for a total of 754 employees, entailing an impact of 2 million euro on the income statement (2 million euro for the entire Group in 2006).