Worldwide Annual Report

7 PENSION PLANS

Plan International operates two defined contribution pension plans for its expatriate employees, one for US citizens and one for non-US citizens.
In addition, there are a variety of plans for other employees in the 43 program countries, in the 14 national organisations and in FPPI Ltd. These
pension schemes are a mixture of defined contribution and defined benefit plans and are govemrned by local statutory regulations. In all cases,
pension fund assets are held independently of PLAN's assets.
Funding of each defined benefit plan is determined by local pension trustees in accordance with local statutory requirements and local actuarial
advice. On that basis, the trustees of the defined benefit plans consider that their plans are adequately funded. However, the application of the
actuarial valuation methods required by the International Accounting Standards body results in a potential unfunded liability of $1.5 million. No
adjustment has been made in these accounts as the potential adjustment is considered immaterial.
Contributions payable in respect of all pension plans are charged to the period in which they relate. The total expenditure on pensions was
$1.3 million ($1.5 million in 1998).
8 INCOME AND EXPENDITURES OF THE CENTRAL ORGANISATION
The combined statement of income and expenditures at page 4 shows the results of the worldwide organisation and is a combination of the
results of the national organisations with those of the central organisation - Plan Intemrnational and its subsidiary, FPPI Ltd.
The analysis below shows the relationship between the net income from the national organisations and the expenditures of the central
organisation. The corresponding net income figures appear in the financial statements of each national organisation, though in local currency and
subject to local accounting policy differences.
National organisations contribute differing percentages of their gross income to the central organisation. The average contribution in 1999 was 81%
(1998-81%).
Year ended 30 June
1999 1998
$'000 $'000
Net income from each national organisation:
Australia 5,540 5,012
Belgium 9,274 9,248
Canada 19,844 20,998
Germany 26,889 21,093
Japan 26,096 27,742
Netherlands 94,159 99,142
Norway 9,382 4,029
UK 18,586 14,562
USA 23,446 21,742
Developing national organisations 3,846 1,588
Total net income from national organisations 237,062 225,156
Less: Expenditures of the central organisation (note I)
Field program expenditures 222,486 183,548
Intemrnational headquarters program support 6,995 7,776
Total program expenditures 229,481 I 191,324
Fund-raising 2,897 5,804
Operating 4,172 3,905
Total expenditures 236,550 201,033
Other 1,736 207
Combined income over expenditures (page 4) 2,248 24,330
The net income from each national organisation shown above has been converted into US dollars at the average rates of exchange in force during
the respective years.
$1.8 million (1998 $1.1 million) of grants were raised in program countries by Plan International; these grants generally arise as a result of fundraising activities of national organisations, so the income in respect of these grants has been allocated to national organisations. Similarly,

$3.5 million (1998 $2.7 million) of interest was received by Plan International; this interest generally arises from transmission of funds by national
organisations in advance of Plan International's immediate expenditure needs, so this interest is allocated to national organisations.