Company: BCS
Filing Date: 2025-02-13
Form Type: 20-F
Source: 0000312069-25-000114
Chunk: 460

Company: BARCLAYS PLC
Filing Date: 2025-02-13
Form: 20-F
Chunk 460
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 yield): • An increase in long-term expected inflation corresponds to an increase in liabilities; • A decrease in the discount rate corresponds to an increase in liabilities. Pension risk is generated through the Group’s defined benefit schemes and this risk is set to reduce over time as the main defined benefit scheme is closed to new entrants. The chart below outlines the shape of the UKRF’s liability cash flow profile as at 31 December 2024 that takes account of the future inflation indexing of payments to beneficiaries. The majority of the cash flows (approximately 97% ) fall between 0 and 40 years, peaking between 11 and 20 years and reducing thereafter. The shape may vary depending on changes to inflation and longevity expectations and any members who elect to transfer out. Transfers out will bring forward the liability cash flows. For more detail on the UKRF’s financial and demographic assumptions, see Note 32 to the financial statements.

| Proportion of liability cash flows(%) |

| n | 0-10 years  | 32.7 |
| n | 11-20 years | 33.3 |
| n | 21-30 years | 21.1 |
| n | 31-40 years |   10 |
| n | 41-50 years |  2.7 |
| n | 51+ years   |  0.2 |

| Net IAS 19 position(£bn) |

| 6 |
| 5 |
| 4 |
| 3 |
| 2 |
| 1 |
| 0 |

The graph above shows the evolution of the UKRF’s net IAS 19 position over the last four years. During 2024 t he decrease in the UKRF surplus was driven by changes in market conditions, primarily due to the high rates environment. Refer to Note 32 to the financial statements for the sensitivity of the UKRF to changes in key assumptions. Risk measurement In line with Barclays’ risk management framework, the assets and liabilities of the UKRF are modelled within a VaR framework to show the volatility of the pension position at a total portfolio level. This enables the risks, diversification and liability matching characteristics of the UKRF obligations and investments to be adequately captured. VaR is measured and monitored on a quarterly basis. Risks are reviewed and reported regularly at the Pensions Executive Board. The VaR model takes into account the valuation of the liabilities on an IAS 19 basis (see Note 32 to the