ANNUAL REPORT AND FINANCIAL STATEMENTS 2011 | 83


24. Provisions continued The following table analyses the payments and the associated movements in provisions:


Amounts Amounts recognised Note


Opening provision at 1 January 2011 Increase in provision during the year


Transfer of put option cost to equity and payment to founder members Interest paid to founder members Legal costs paid to founder members F&C legal costs incurred


F&C Partners litigation expense recognised in Income Statement Consideration for NCI recognised in Statement of Changes in Equity Closing provision at 31 December 2011


6(a)(v)


recognised in Statement in Income Statement £m


7.6 (7.8)


of Changes in Equity £m


Provision £m


–– 2.4 1.5 7.8


9.1


–– (1.7) –


1.4


(7.8) –


2.1 –– 1.9


10.7 2.0


The amounts recognised in the Statement of Changes in Equity represents the fair value of the consideration paid for the acquisition of the 40% non-controlling interest in F&C Partners LLP, which was acquired pursuant to the valid exercise of the Put Option, as outlined above. At 31 December 2011, £1.5m of this consideration (31 December 2010: £nil) is included within provisions and £0.4m (31 December 2010: £nil) has been recognised in other creditors.


25. Pension benefits The Group operates defined benefit schemes in the United Kingdom, The Netherlands, the Republic of Ireland and participates in one in Portugal. The UK scheme is closed to new entrants. All new UK employees are eligible to benefit from defined contribution arrangements, which provide greater certainty over the future cost to the Group.


A former Chairman of the Group, Mr R W Jenkins, has a pension entitlement of £119,000 per annum, which commenced in January 2011. This pension will be indexed in line with the Retail Price Index on 1 January in each subsequent year. The Group has not earmarked any assets to date with respect to this liability.


The net pension deficit is recognised under non-current liabilities in the Statement of Financial Position and is stated gross of the related deferred tax asset.


The results of the latest full actuarial valuations were updated at 31 December 2011 by qualified independent actuaries. The pension deficits of the Group are summarised in aggregate and by scheme as follows:


31 December 31 December 2011


Aggregate


Fair value of plan assets Benefit obligations


Total pension deficit By scheme


F&C Asset Management Pension Plan (FCAM Plan) F&C Netherlands pension plan F&C Ireland pension plan F&C Portugal pension plan R W Jenkins pension


Total pension deficit Note


25(d) 25(d)


25(d) £m 215.9


(236.4) (20.5)


2010 £m


190.4


(218.0) (27.6)


31 December 31 December 2011 £m


(10.3) (6.6) (0.4) –


(3.2) (20.5)


2010 £m


(17.5) (6.5) (0.4) (0.2) (3.0)


(27.6)


Disclosure relating to the Group’s defined benefit obligations The information given in (a) to (d) below reflects the aggregate disclosures in respect of all Group defined benefit pension arrangements, except where otherwise indicated.


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