Notes to the Accounts
11. Employee information
The details of the emoluments of the directors of Pearson plc are shown in the Personnel Committee Report and form part of these audited financial statements.
| all figures in £ millions | 2000 | 1999 |
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| Staff costs | ||
| Wages and salaries | 792 | 702 |
| Social security costs | 82 | 75 |
| Post-retirement costs | 22 | 26 |
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| 896 | 803 | |
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| UK | US | other | total | |
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| Average number employed | ||||
| Pearson Education | 1,517 | 9,180 | 2,888 | 13,585 |
| FT Group | 2,166 | 1,413 | 1,892 | 5,471 |
| The Penguin Group | 1,630 | 2,310 | 768 | 4,708 |
| Television | 390 | 60 | 247 | 697 |
| Other | 168 | 59 | – | 227 |
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| Continuing operations | 5,871 | 13,022 | 5,795 | 24,688 |
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| Average number employed | ||||
| Pearson Education | 1,407 | 7,229 | 2,042 | 10,678 |
| FT Group | 2,158 | 1,034 | 1,790 | 4,982 |
| The Penguin Group | 749 | 1,866 | 614 | 3,229 |
| Television | 617 | 105 | 550 | 1,272 |
| Other | 171 | 51 | – | 222 |
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| Continuing operations | 5,102 | 10,285 | 4,996 | 20,383 |
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| all figures in £ millions | 2000 | 1999 |
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| Post-retirement costs | ||
| Defined benefit pension schemes | ||
| UK Group plan: regular pension cost | 8 | 8 |
| UK Group plan: amortisation of surplus | (8) | (3) |
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| Net pension | – | 5 |
| Other defined benefit pension schemes | 13 | 11 |
| Defined contribution pension schemes | 5 | 6 |
| Medical benefits | 4 | 4 |
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| 22 | 26 | |
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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 most recent full actuarial valuation was performed as at 1 January 1999, using the projected unit method of valuation. The market value of the assets of the scheme at this date was £1,038m. The actuarial assumptions used to determine the SSAP24 charge are shown on page 71. The net assets of the UK Group plan at 31 December 2000 are included in the pension plan accounts at £1,185m (unaudited).
| UK group plan | |
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| 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 | 1.25% |
| Level of funding* | 112% |
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* 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, on a mortgage basis over the expected remaining service lives of the current employees.
The total market value of the assets of other defined benefit schemes (mainly in the US), valued this year, was £93m (1999: £64m).
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 depending on the business division in which the retiree worked. Plan choices and retiree contributions are dependent on retirement date, business division, option chosen and length of service.
The principal assumptions affecting the provision for other post-retirement benefits were: medical inflation rates of between 5% and 7% and a discount rate of 8%.
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