Notes to the Accounts

10. Employee information

 

Staff costs
Wages and salaries	476	454
Social security costs	54	46
Post-retirement costs	13	10
	543	510

	uk	us	other	total
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
Average number employed 1997
FT Group	3,093	902	1,834	5,829
Pearson Education	818	2,498	1,279	4,595
The Penguin Group	895	1,728	582	3,205
Pearson Television	278	40	362	680
Other	124	93	–	217
Continuing operations	5,208	5,261	4,057	14,526
Discontinued operations	3,187	424	169	3,780
	8,395	5,685	4,226	18,306

Post-retirement costs
Defined benefit pension schemes
UK Group plan: Regular pension cost	8	9
UK Group plan: Amortisation of surplus	(9)	(13)
Net pension credit	(1)	(4)
Other defined benefit pension schemes	6	6
Defined contribution pension schemes	5	6
Medical benefits	3	2
	13	10

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, using the projected unit method of valuation, of the principal funded UK scheme, are shown in the table on page 67. The principal assumptions used are also shown in the table on page 67. The net assets of the UK Group plan at 31 December 1998 are included in the pension plan accounts at £1,035m (unaudited).

*Stated after a transfer of £2m to the scheme of a former subsidiary. **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, resulting in a credit to the profit and loss account of £1m (1997: £4m).

The total market value of the assets of the non UK defined benefit schemes (mainly in the US), valued this year, was £63m (1997: £48m).

Other post-retirement benefits The Group provides certain health care and life insurance 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 rate of 6.5% and a discount rate of 6.75%.