36 Provisions.

(i) Analysis of provisions

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	Notes	2009 £m	2008 £m
1. Retirement benefit obligations are presented gross of £465m of annuity obligations insured by [Society] (2008: £411m).
Retirement benefit obligations1	(ii)	746	551
Other provisions		11	4
		757	555

(ii) Retirement benefit obligations

Defined contribution plans

The Group operates the following defined contribution pension schemes in the UK and overseas:

• Legal & General Group Personal Pension Plan (UK).
• Legal & General Staff Stakeholder Pension Scheme (UK).
• Legal & General America Inc. Savings Plan (US).
• Régime de Retraite Professionnel (France).
• Legal & General Nederland Stichting Pensioenfonds (Netherlands); replacing the early retirement scheme previously part of the defined benefit plan.
• Legal & General International (Ireland) Limited Retirement Solution Plan (Ireland).

Contributions of £34m (2008: £25m) were charged as expenses during the year in respect of defined contribution plans.

Defined benefit plans

The Group operates the following defined benefit pension schemes in the UK and overseas:

• Legal & General Group UK Pension and Assurance Fund (the Fund). The Fund was closed to new members from January 1995; last full actuarial valuation as at 31 December 2006.
• Legal & General Group UK Senior Pension Scheme (the Scheme). The Scheme was, with a few exceptions (principally transfers from the Fund), closed to new members from August 2000 and finally closed to new members from April 2007; last full actuarial valuation as at 31 December 2006.
• Legal & General America Inc. Cash Balance Plan; last full actuarial valuation as at 31 December 2008.
• Legal & General Nederland Stichting Pensioenfonds; last full actuarial valuation as at 31 December 2007.
• Régime de Retraite à Prestations Définies de Legal & General (France); last full actuarial valuation as at 31 December 2009.

The benefits paid from the defined benefit schemes are based on percentages of the employees’ final pensionable salary for each year of credited service. The Group has no liability for retirement benefits other than for pensions, except for a small scheme in France (Indemnités de Fin de Carrière), which provides lump sum benefits on retirement. The Fund and Scheme account for virtually all of the UK and over 98% of worldwide assets of the Group’s defined benefit schemes.

The principal actuarial assumptions for the UK defined benefit schemes were:

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	Fund and Scheme 2009 %	Fund and Scheme 2008 %
1. On 1 December 2008, the conditions of the Fund and Scheme were amended to cap future pensionable salary increases at a maximum of 2.5% each year with effect from 1 January 2009.
Rate used to discount liabilities	5.70	6.50
Expected return on plan assets	6.37	6.71
Rate of increase in salaries1	2.30	2.30
Rate of increase in pensions in payment	3.60	3.20
Rate of increase in deferred pensions	4.30	3.75
Rate of general inflation (RPI)	3.60	2.70
Rate of wage inflation	2.30	2.30
Post retirement mortality
– 2009: 100% (Fund) / 85% (Scheme) of PCMA/PCFA 00 with improvement at 100% [MC] males, 75% MC females, minimum improvement 1.5% pa males and 1.0% pa females, with tapering of minimum improvement rate linearly down to nil between ages 90 and 120
– 2008: 100% (Fund) / 85% (Scheme) of PCMA/PCFA 00 with improvement at 100% MC males, 75% [MC] females, minimum improvement 1.5% pa males and 1.0% pa females

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	Fund and Scheme 2009 £m	Overseas 2009 £m	Fund and Scheme 2008 £m	Overseas 2008 £m
Movement in present value of defined benefit obligations
As at 1 January	(1,160)	(27)	(1,365)	(19)
Current service cost	(10)	(1)	(17)	(1)
Past service cost	–	–	5	–
Interest expense	(74)	(2)	(77)	(1)
Plan participants’ contributions	–	–	(3)	–
Actuarial (loss)/gain (recognised in statement of comprehensive income)	(258)	(1)	249	–
Benefits paid	56	1	48	1
Exchange differences	–	2	–	(7)
As at 31 December	(1,446)	(28)	(1,160)	(27)
Movement in fair value of plan assets
As at 1 January	609	27	771	18
Expected return on plan assets	41	2	51	1
Actuarial gain/(loss) (recognised in statement of comprehensive income)	46	–	(222)	(1)
Employer contributions	59	3	54	4
Plan participants’ contributions	–	–	3	–
Benefits paid	(56)	(1)	(48)	(1)
Exchange differences	–	(2)	–	6
As at 31 December	699	29	609	27
Gross pension obligations included in provisions	(747)	1	(551)	–
Annuity obligations insured by Society	465	–	411	–
Gross defined benefit pension deficit	(282)	1	(140)	–
Deferred tax on defined benefit pension deficit	79	–	39	–
Net defined benefit pension deficit	(203)	1	(101)	–

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	2009 £m	2008 £m	2007 £m	2006 £m	2005 £m
Present value of defined benefit obligations	(1,474)	(1,187)	(1,384)	(1,346)	(1,304)
Fair value of plan assets	728	636	789	778	722
Gross pension obligations	(746)	(551)	(595)	(568)	(582)
Experience adjustments on plan liabilities	18	3	(19)	(13)	(9)
Experience adjustments on plan assets	46	(222)	(32)	10	76

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As at 31 December 2009	UK £m	Expected return %	Overseas £m	Expected return %
Equities	351	7.0	8	8.2
Bonds	311	5.7	17	4.1
Properties	37	6.0	–	–
Other investments	–	–	4	2.8
	699		29
As at 31 December 2008	UK £m	Expected return %	Overseas £m	Expected return %
Equities	293	7.0	5	8.3
Bonds	280	6.5	18	4.1
Properties	36	6.0	–	–
Other investments	–	–	4	2.3
	609		27

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	2009 £m	2008 £m
Current service costs	11	18
Interest expense	76	78
Expected return on plan assets	(43)	(52)
Total included in other expenses	44	44