**Exhibit 4.3**

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| WE          HEREBY CERTIFY THIS TO BE A TRUE COPY OF THE ORIGINAL.          |
|-----------------------------------------------------------------------------|
| SACKER          & PARTNERS LLPSACKER & PARTNERS LLP****Date 26.5.06 |

**FUNDING  AGREEMENT**

**REUTERS  PENSION FUND**

This Agreement is made on 23rd May 2006

**Between:**

| (1) | **REUTERS          LIMITED** (Company          number 145516) whose registered office is at the Reuters Building, South          Colonnade, Canary Wharf, London E14 5EP (“**the          Company**”) |
|-----|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (2) | **THE          MANAGING COMMITTEE OF REUTERS PENSION FUND**          (acting through two duly authorised representatives) (“**the          Managing Committee**”)          and |
|-----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (3) | **REUTERS          PENSION FUND LIMITED**          (Company number 433398), whose registered office is also at the Reuters          Building, as trustee of Reuters Pension Fund (“**the          Trustee**”). |
|-----|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

**Introduction**

The    Company has made a number of proposals to the Managing Committee and the Trustee    (together “**the Trustees**”, meaning either or both of the Managing    Committee and the Trustee as the context requires) relating to the funding    and investment strategy of RPF and the benefits provided under RPF. This Agreement    records the agreement reached between the Company and the Trustees following    discussion of the proposals.

**Operative    Provisions**

| 1. | **Definitions              and Interpretation** |
|----|-------------------------------------------------|

| 1.1 | In              this Agreement:- |
|-----|----------------------------------|

 

| **“Adjustment”**                           |   | has          the meaning given in clause 4.6 below.                                                                                                                                                                                                                                                                                                                                                                                                                                     |
|------------------------------------------------------|--------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|                                                 |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    |
| **“Factiva          Debt”**                |   | means          any debt due under section 75A of the Pensions Act 1995 if Dow Jones          Reuters Business Interactive Limited ceases to participate in the Scheme          provided that debt is paid at the same time as or before the payment          referred to in clause 4.3.                                                                                                                                                                                                 |
|                                                 |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    |
| **“Incentive          Payment Reduction”** |   | has          the meaning given in clause 4.4 below.                                                                                                                                                                                                                                                                                                                                                                                                                                     |
|                                                 |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    |
| **“Incentive          Payments”**          |   | means          the incentive payments referred to in clause 9.1 below, save that in          relation to an active member or deferred pensioner who has benefits          in both RPF and Reuters Supplementary Pension Scheme (“SPS”)          it means that proportion of the incentive payments which relates to          RPF, for which purpose the incentive payment made in relation to him          or her will be deemed to be apportioned between RPF and SPS in the |

1

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|                                          |   | proportions          which the member’s cash equivalents in RPF and SPS bear to each          other. |
|-----------------------------------------------|--------|-----------------------------------------------------------------------------------------------------------|
|                                          |   |                                                                                                      |
| **“Relevant          Pensions”**    |   | has          the meaning given in clause 7.4 below.                                                       |
|                                          |   |                                                                                                      |
| **“RPF”**                           |   | means          Reuters Pension Fund.                                                                      |
|                                          |   |                                                                                                      |
| **“Special          Contribution”** |   | means          the contribution payable under clause 4.2 below.                                           |
|                                          |   |                                                                                                      |
| **“Surplus”**                       |   | has          the meaning given in clause 7.3 below.                                                       |
|                                          |   |                                                                                                      |
| **“Transfer          Programme”**   |   | means          the programme referred to in clause 9.1 below.                                             |

| 1.2 | In            the interpretation of this Agreement, unless the context requires            otherwise: |
|-----|-------------------------------------------------------------------------------------------------------|

|   | (a) | the            singular includes the plural and vice versa; |
|--------|-----|-------------------------------------------------------------|

|   | (b) | references            to legislation enacted in the United Kingdom, but which does not extend            to Northern Ireland, include any corresponding legislation in force            in Northern Ireland; |
|--------|-----|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (c) | references            to any legislation or any provision of it include references to any            subordinate legislation made under it; and |
|--------|-----|-------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (d) | references            to any legislation or any provision of it include references to any            previous legislation or provision relating to the same subject-matter            or to any modification or re-enactment of it for the time being in            force. References to any subordinate legislation or any provision            are to be similarly construed. |
|--------|-----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 2. | **Investment            Strategy** |
|----|------------------------------------|

| 2.1 | Subject            to clause 2.3 below, the Company and the Trustees agree to implement            an investment strategy that seeks to reduce interest rate and inflation            risk within RPF (namely a swaps overlay) which addresses:- |
|-----|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (a) | the            percentage of RPF’s interest rate and inflation risk to be hedged            and the nature of the contracts to be used to do so; |
|--------|-----|-------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (b) | the            timing of the implementation of the overlay (subject to clause 2.3            below); |
|--------|-----|------------------------------------------------------------------------------------------------------|

|   | (c) | how            RPF assets will be invested to meet the RPF’s side of the obligations            to the swaps counterparties; |
|--------|-----|-----------------------------------------------------------------------------------------------------------------------------------|

|   | (d) | the            percentage (initially no greater than 55% of RPF’s assets) to            be invested in growth-seeking assets; and |
|--------|-----|----------------------------------------------------------------------------------------------------------------------------------------|

|   | (e) | the            way in which the growth seeking assets will be diversified. |
|--------|-----|----------------------------------------------------------------------------|

Once agreed, the new investment strategy will be set out in an agreed Statement of Investment Principles.

2

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| 2.2 | The        Company agrees to meet the cost of implementing the swaps overlay within        90 days after that cost is incurred and notified in writing to the Company.        For this purpose, the cost of implementing the swaps overlay includes:- |
|-----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (a) | the          mid-offer spread paid when executing the swap, subject to the Company          having been informed and having agreed the mid-offer spread or an acceptable          range in advance; |
|--------|-----|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (b) | the          fees charged by the Trustees’ investment consultants and legal          advisers in relation to advice about the swaps overlay and the counterparty          and other agreements relating to that overlay, subject to the Company          having approved in advance fee budgets produced by the Trustees’          investment consultants and legal advisers and the final fees being in          line with these fee budgets; and |
|--------|-----|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (c) | the          set-up charges made by the Trustees’ execution agent in relation          to the implementation of the swaps, subject to the Company having approved          in advance a budget for these charges and the final charges being in          line with the budget. |
|--------|-----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 2.3 | The          Company and the Trustees acknowledge that:- |
|-----|----------------------------------------------------------|

|   | (a) | the          detailed design of the swaps overlay and underlying investment strategy          still needs to be approved by the Trustees; and |
|--------|-----|-----------------------------------------------------------------------------------------------------------------------------------------------|

|   | (b) | the          strategy referred to in clause 2.1 above will be implemented as soon          as is practicable, but in a manner that attempts to smooth the rates          at which the swaps are entered into. |
|--------|-----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 2.4 | The          Trustees agree that following payment of the Special Contribution:- |
|-----|----------------------------------------------------------------------------------|

|   | (a) | they          will not make changes to RPF’s investment strategy as agreed under          clause 2.1 above without consulting with the Company a reasonable period          in advance of the proposed change; |
|--------|-----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (b) | they          will provide the Company with such information as it reasonably requires          to monitor the progress of RPF’s investments; |
|--------|-----|----------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (c) | a          representative of the Company will be invited to attend the relevant          part of any meetings of the Trustees and their sub-committees at which          investment strategy is to be discussed; |
|--------|-----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (d) | the          Company representative will receive notice of meetings and agenda papers,          so far as relevant to investment strategy, and will be entitled to speak          at the meetings, but will not be a trustee director or a member of any          investment sub-committee of the Trustees and therefore will not have          a vote or count for quorum purposes; |
|--------|-----|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (e) | the          Company may make proposals to develop investment strategy for discussion          with the Trustees. |
|--------|-----|-------------------------------------------------------------------------------------------------------------------|

| 3. | **Statement          of Funding Principles** |
|----|----------------------------------------------|

The  Company and the Trustees have agreed that the RPF’s “technical provisions”  will be valued as set out in the Statement of Funding Principles appended as  Schedule 1 (and taking account of any adjustments made in line with clause 7.4.4).

3

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| 4. | **Recovery          Plan** |
|----|----------------------------|

| 4.1 | The          recovery plan will be based on the deficit of £189 million estimated          by the Scheme Actuary as at 31 December 2005 plus £4.2 million          being a payment which the Company instructs the Managing Committee under          RPF Rule 11c to apply in providing the discretionary pension increases          referred to in clause 7.1 below. |
|-----|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 4.2 | The          Company agrees to pay £153.2 million as a contribution to RPF          within 30 days after the date of this agreement (“the **Special          Contribution**”). |
|-----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 4.3 | If          the Transfer Programme proceeds, the Company will pay as a contribution          to RPF at the earliest tax efficient opportunity following completion          of the Transfer Programme an amount (if any) calculated as set out below: |
|-----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | 4.3.1 | £40          million minus:- |
|--------|-------|------------------------------------|

|   | (a) | the          Incentive Payment Reduction and |
|--------|-----|----------------------------------------------|

|   | (b) | the          Factiva Debt (if any) |
|--------|-----|------------------------------------|

plus

|   | 4.3.2 | the          Adjustment. |
|--------|-------|--------------------------|

| 4.4 | The          “**Incentive          Payment Reduction**” will          be equal to the amount of the Incentive Payments made but subject to          a cap equal to the difference between the sum of the past service reserves          (calculated using the assumptions in the Statement of Funding Principles          for the deferred pensioners and active members who elect to transfer)          and the sum of their standard cash equivalents. The Incentive Payment          Reduction will be calculated at the same date(s)as the cash equivalents. |
|-----|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 4.5 | If          the Transfer Programme does not proceed, provided that the Trustees          have complied with clause 9.2 below to the extent that they have been          requested to do so by the Company, the Company will pay £40 million          plus the Adjustment as a contribution to RPF. |
|-----|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 4.6 | The          “Adjustment” means a notional return as calculated by the          Scheme Actuary equal to: |
|-----|--------------------------------------------------------------------------------------------------------------------|

|   | 4.6.1 | the          notional return on a sum of £40m invested in line with the notional          bond portfolio outlined below in the period from the date of payment          of the Special Contribution to the date on which the payment referred          to in clause 4.3 or 4.5 above is made; minus |
|--------|-------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | 4.6.2 | the          notional return on a sum equal to the Incentive Payment Reduction invested          in line with the notional bond portfolio outlined below in the period          from the date of calculation of the cash equivalents to the date on          which the payment referred to in clause 4.3 or 4.5 above is made. |
|--------|-------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

Half  of the notional bond portfolio is assumed to be invested in line with the UK  gilts over 15 years total return index and the other half is assumed to be invested  in line with the index linked UK gilts over 5 years total return index.

4

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| 4.7 | The          Company will use its reasonable endeavours either to proceed with the          Transfer Programme (or to decide not to do so) within 7 months after          the date of this Agreement. |
|-----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 5. | **Future          Service Benefits and Contributions** |
|----|--------------------------------------------------------|

| 5.1 | The          Trustees note that the Company proposes to make a change to the employment          contracts of current active members of RPF to give them the choice of          maintaining the current accrual rate and increasing their contributions          to 9% of salary or switching to an 80ths accrual rate and maintaining          their current contribution rate of 6% of salary. |
|-----|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 5.2 | It          is agreed that the overall contributions in respect of accruing benefits          shall be assessed using the attained age method and will be 25.8% of          salaries for members opting for 60ths and 19.0% of salaries for members          opting for 80ths (including an allowance for ill-health benefits) plus          the premium for any life cover as calculated by the Scheme Actuary,          these rates to be reviewed after each triennial actuarial valuation.          In the event that the Company decides to provide ill-health benefits          outside the RPF in future, these rates will be reduced by an appropriate          amount calculated by the Scheme Actuary from the time that this takes          effect. |
|-----|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 5.3 | The          Company agrees that it will in addition continue to pay the appropriate          Pension Adjustment percentage under RPF Rule 12b and contributions representing          the National Insurance saving arising from the Pension Adjustment. |
|-----|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 5.4 | The          Trustees agree to amend the RPF Rules in due course to reflect the changes          to benefits and contributions set out in clause 5.1 above, to the extent          that those changes have been made contractually. |
|-----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 6. | **PPF          Levies and Administration Expenses** |
|----|-----------------------------------------------------|

The  Company agrees that it will, in addition to the contributions set out above,  reimburse the Trustees for any levy which they are required to pay to the Pension  Protection Fund and for all expenses of administering RPF, for the period covered  by the schedule of contributions reflecting this Agreement.

| 7. | **Discretionary          Pension Increases** |
|----|----------------------------------------------|

| 7.1 | The          Company and the Trustees agree that (subject to payment of the Special          Contribution) a discretionary increase of 2.7% will be provided under          RPF Rule 11c as set out in clause 7.2 below, subject to the Scheme Actuary          recommending that a discretionary increase can be paid, on: |
|-----|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (a) | that          part of any pension in payment (or postponed under Rule 25) which is          not subject to automatic increases under the Scheme Rules or statute          in excess of any GMP in payment; and |
|--------|-----|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (b) | if          a deferred pension exceeds the value for money guarantee provided under          the Rules, any part of that deferred pension in excess of any GMP which          is not subject to automatic increases under the Scheme Rules or statute. |
|--------|-----|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

In  addition, pensions in payment relating to service after 5 April 2005 will receive  a discretionary increase of 0.2% (i.e. the difference between 2.7% and 2.5%).

| 7.2 | The          increase will be paid in July 2006 but will be backdated to May 2006. |
|-----|------------------------------------------------------------------------------------|

5

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| 7.3 | The          Company and the Trustees agree that a funding check will be made by          the Scheme Actuary during the first three months of each calendar year          to assess as at the preceding 31 December the amount (the “Surplus”)          (if any) by which the assets in the RPF exceed the technical provisions.          The first such funding check will undertaken in 2007 and the last in          2010. The Scheme Actuary’s report in this regard will be addressed          jointly to the Trustees and the Company. In calculating this, the Scheme          Actuary will use:- |
|-----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (a) | the          actuarial basis (“the Basis”) used for determining contributions          to the Scheme which is current at the date of the relevant funding check.          As at the date of this agreement that basis is set out in the Statement          of Funding Principles appended as Schedule 1. For the avoidance of doubt,          the technical provisions determined for this purpose include the reserve          which will build up as a consequence of using the Attained Age Method; or |
|--------|-----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (b) | such          alternative actuarial basis (after allowing for changes in market yields          that are incorporated in the basis) as the Scheme Actuary considers          appropriate for the ongoing funding of the RPF. Any alternative basis          will not, without the consent of the Company, be weaker (less conservative)          than the Basis which is current at that time. |
|--------|-----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

If  the payment referred to in clause 4.3 above has not been paid at the effective  date of the 2007 funding check, the funding check will be calculated on the  basis that the amount referred to in clause 4.3 calculated as at the effective  date of the funding check in accordance with clause 4.6 is due and part of the  assets.

| 7.4 | If          the funding check reveals a Surplus, the Company agrees that the Trustees          may (subject to the consent of the Scheme Actuary) use up to 40% of          any Surplus to provide under RPF Rule 11c a discretionary increase on          “Relevant Pensions” namely: |
|-----|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (a) | that          part of any pension in payment (or postponed under Rule 25) which is          not subject to automatic increases under the Scheme Rules or statute          in excess of any GMP in payment; and |
|--------|-----|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (b) | that          part of any pension in payment relating to service after 5 April 2005; and |
|--------|-----|------------------------------------------------------------------------------------------|

|   | (c) | if          a deferred pension exceeds the value for money guarantee provided under          the Rules, any part of that deferred pension in excess of any GMP which          is not subject to automatic increases under the Scheme rules or statute |
|--------|-----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

on  the basis set out below, with effect from 1 January in the relevant year, subject  to the following conditions:

|   | 7.4.1 | Relevant          Pensions which are not subject to automatic increases may be increased          by a maximum of the change in RPI in the year to the preceding September,          subject to a maximum increase of 5% (“5% LPI”); |
|--------|-------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | 7.4.2 | Relevant          Pensions relating to pensionable service after 5th April 2005 which          are subject to statutory increases in line with the change in RPI in          the year to the preceding September, subject to a maximum increase of          2.5% (“2.5% LPI”) may be further increased to bring them up          to 5% LPI, subject to the Company’s consent; |
|--------|-------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

6

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|   | 7.4.3 | catch-up increases (that is, increases which could have been payable under either of the above conditions in previous years from 2007 onwards, but which were not paid owing to there not being sufficient Surplus) may be granted subject to the Company’s consent; and |
|--------|-------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | 7.4.4 | if a discretionary increase is granted in accordance with the previous conditions, then the Trustees undertake to adjust, for the purpose of the next annual funding check, the valuation assumptions as to the proportion of assets invested in growth assets so that the value placed on the technical provisions is increased by 150% of the amount of Surplus used to provide the discretionary increase. The calculation of the technical provisions under the Statement of Funding Principles will be adjusted in the same way; |
|--------|-------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | 7.4.5 | the cost of the increase awarded in any year in respect of deferred pensions may not exceed £100,000. |
|--------|-------|-------------------------------------------------------------------------------------------------------------|

| 7.5 | The Trustees agree with the Company that they will not, before 31 December 2010, provide without both the Company’s consent and the Scheme Actuary’s recommendation any discretionary pension increases in excess of those detailed above. |
|-----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 8. | **Actuarial          Valuation** |
|----|----------------------------------|

| 8.1 | The Trustees confirm that the next formal valuation of RPF is due as at 31 December 2007 and that they know of no reason why an emergency valuation should be undertaken at an earlier date, but reserve the right to call an earlier valuation if they become aware of events that have a significant impact on RPF’s funding position. |
|-----|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 8.2 | The Trustees will consult the Company before instigating a formal valuation as at a date earlier than 31 December 2007. |
|-----|-------------------------------------------------------------------------------------------------------------------------|

| 9. | **Cash          Equivalent transfer value exercise** |
|----|------------------------------------------------------|

| 9.1 | The Company proposes to invite deferred pensioners and active members to transfer their benefits from RPF and to make incentive payments to those who agree. |
|-----|--------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 9.2 | The Trustees agree to provide such information as the Company may reasonably request for the purpose of this exercise, to instruct the RPF administrators (to the extent required) to provide administrative support to the Company for this exercise, to instruct the Scheme Actuary to carry out the necessary calculations and to generally co-operate with the efficient undertaking of this exercise. The Company recognises that the Trustees will have no other role to play in this exercise apart from making cash equivalent payments as directed by deferred members and active members. |
|-----|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 10. | **Counterparts** |
|-----|------------------|

This Agreement may be executed in several counterparts and individual directors of a company and individual members of the Managing Committee may sign separate counterparts, each of which when so executed shall be deemed an original but all of which together shall constitute one and the same Agreement.

7
 

**Executed by the Parties**

 

 

 

 

 

 

On          behalf of the Company

 

On          behalf of the Managing Committee and the Trustee

 

 

 

 

 

 

On          behalf of the Company

 

On          behalf of the Managing Committee and the Trustee

8
 

**Schedule 1 – Statement of Funding Principles**

9
 

**Reuters Pension Fund**

**Statement of Funding Principles**

 

 

 

 

 

 

**Status**

 

 

This statement was prepared by the Managing Committee and Trustees of RPF (“the Trustees”) on 24 May 2006 after obtaining the advice of Michael Pomery, the Scheme Actuary to RPF, and is to be taken into account in determining the funding of RPF following the formal actuarial valuation as at the effective date of 31 December 2004, and the informal update of the funding position as at 31 December 2005.

 

 

 

 

 

 

**The          statutory funding objective**

 

 

This          statement sets out the Trustees’ policy for securing that the statutory          funding objective under section 222 of the Pensions Act 2004 is met.          The Trustees note that this statement is not required until a formal          actuarial valuation of RPF has been carried out with an effective date          after 22 September 2005. However, they have agreed with Reuters Ltd          that a statement should be drawn up at this stage.

 

 

 

 

 

 

**The technical provisions – method**

 

 

The actuarial method to be used in the calculation of the technical provisions is the Attained Age Method, under which the salary increases assumed for each member are projected until that member is assumed to leave active service by death, retirement or withdrawal from service.

The          cost of benefits being earned by members increases with age. This actuarial          method uses a level average future service contribution rate over the          whole of members’ expected future working lifetimes from 31 December          2005. The effect of this is to build up a reserve in the initial years          which can be carried forward to be used to subsidise the future service          rate in later years. This reserve is then included in the calculation          of the technical provisions.

 

 

 

 

 

 

**Assumptions for calculating technical provisions**

 

 

The assumptions used to calculate the technical provisions are summarised in Appendices A and B.

 

 

 

 

 

 

**Discretionary pension increase in 2006**

 

 

The          employer and the Trustees agree that (subject to payment of the contribution          of £153.2m by the employer of which £149m is in relation          to the past service deficit and £4.2m in relation to the discretionary          pension increase) a discretionary increase will be provided on certain          pensions in 2006, subject to the Scheme Actuary recommending that a          discretionary increase can be paid. Full details are set out in Appendix          C.

 

 

 

 

 

 

**Policy on discretionary increases until**

 

 

The employer and the Trustees have agreed a mechanism for assessing whether discretionary pension increases can be provided in years up to

 

 

 

1

 

 

 

**31          December 2010**

 

 

31          December 2010. Appendix C gives details of this.

 

 

 

 

 

 

**Dealing          with shortfalls**

 

 

If          the assets of the RPF are less than the technical provisions at the          effective date of any actuarial valuation, a Recovery Plan will be put          in place, which requires additional contributions from the employer.

The          employer has agreed with the Trustees that contributions to meet £149m          of the total past service shortfall of £189m revealed by the informal          funding update as at 31 December 2005 will be made in 2006, with the          balance of £40m (adjusted in respect of members who transfer out          of the RPF as a result of the incentive offer) to be paid following          completion of the transfer exercise, expected to be in 2007.

Should          a future actuarial valuation reveal a shortfall of assets relative to          the technical provisions, the Trustees and the employer will agree an          appropriate recovery period at that time, and the shortfall will be          met by the payment of additional contributions increasing over the recovery          period on an annual basis by no more than the annual increase in the          retail prices index. In considering the actual recovery period at any          particular valuation the Trustees’ principles are to take into          account the following factors:

 

 

 

**•**

The          size of the funding shortfall;
   
**•**

The          business plans of the employers including how quickly they can reasonably          afford to eliminate the shortfall;
   
**•**

The          size of the funding shortfall;
   
**•**

The          business plans of the employers including how quickly they can reasonably          afford to eliminate the shortfall;   
**•**

The          Trustees’ assessment of the financial covenant of the employers;
   
**•**

Any          contingent security offered by the employers; and
   
**•**

Relevant          legislation and prevailing market practice.
   
The          Trustees and the employer would normally expect any shortfall to be          eliminated within a period of no more than ten years.

The          assumptions to be used in these calculations will be those set out above          for calculating the technical provisions.

 

 

 

 

 

 

**Arrangements          for a party other than Reuters Ltd, other participating employers or          an RPF member to contribute to RPF**

 

 

No          arrangements have been put in place for any Reuters company other than          Reuters Ltd or the other participating employers to contribute to RPF          in the event that the participating employers are not able to honour          their contribution obligations to RPF.

 

 

 

 

 

 

**Policy          on reduction of cash equivalent transfer values (CETVs)**

 

 

The          Trustees will ask the Actuary to advise them at each valuation of the          extent to which assets are sufficient to provide CETVs for all non-pensioners          without adversely affecting the security of the benefits of other members          and beneficiaries. The Trustees may reduce CETVs as permitted under          this legislation to the extent appropriate based on this actuarial advice.

 

 

 

 

 

 

 

 

 

2

 

 

 

**Payments          to the Employer**

 

 

No          payments will be made to Reuters Ltd or any other participating employer          in circumstances where the assets exceed the actuary’s estimate          of the cost of buying out the benefits of all beneficiaries from an          insurance company (including the expenses of doing so) and RPF is not          being wound up.

 

 

 

 

 

 

**Frequency          of valuations and circumstances for extra valuations**

 

 

The          RPF’s first actuarial valuation under Part 3 of the Pensions Act          2004 will be carried out as at the effective date of 31 December 2007,          and subsequent valuations will in normal circumstances be carried out          every three years thereafter.

An          actuarial report on developments affecting the RPF’s funding level          will be obtained as at each intermediate anniversary of that date, the          first such actuarial report being obtained as at 31 December 2008. The          Trustees may call for a full actuarial valuation instead of an actuarial          report when, after considering the actuary’s advice, they are of          the opinion that events have made it unsafe to continue to rely on the          results of the previous valuation as the basis for future contributions.          However, the Trustees will consult the employer before doing so.

 

 

 

 

 

 

**Signatures**

 

 

This          statement has been agreed by the employers:

Signed          on behalf of Reuters Limited (and the other participating employers)

Name: /s/ Helen Jones

                  /s/ David Grigson

 

Position:

Date:

This          statement was agreed by the Trustees on 24 May 2006:

Signed          on behalf of the Trustees of RPF

Name: /s/ Greg Meekings

Position:          Trustee

Date:

This          statement has been agreed by the Trustees after obtaining actuarial          advice from me:

Signed

Name: /s/ Michael Pomery

Position:          Scheme Actuary to RPF 

Date:

 

 

 

 

 

 

 

 

 

3

 

 

**Appendix A:**

**Financial  assumptions for determining the technical   provisions**

 

**Discount          rate on liabilities after retirement**
 
 

The          gross annualised redemption yield on the FT-Actuaries Fixed Interest          20 year (all coupon) Index on the effective date plus 0.25% p.a.

**Discount          rate on liabilities before retirement**
 
 

The          gross annualised redemption yield on the FT-Actuaries Fixed Interest          20 year (all coupon) Index on the effective date plus 1.50% p.a.

 
 
 

If          a discretionary pension increase is granted in future years in accordance          with the provisions of Appendix C, then this will be adjusted as outlined          in Appendix C.

**Price          inflation**
 
 

Calculated          by reference to the difference between the gross annualised redemption          yield on the FT-Actuaries Fixed Interest 20 year (all coupon) Index          and the average of the annualised real gross redemption yield on the          FTSE Actuaries Government Index-linked Securities Over five years (0%          inflation) and (5% inflation) Indices on the effective date.

**Salary          increases**
 
 

Price          inflation plus 1.5% p.a., plus an allowance for promotional increases          of 2.0% p.a. below age 35; 1.0% p.a. between ages 35 and 50, and nil          above age 50.

**Automatic          increases to pensions in payment**
 
 

Derived          from the price inflation assumption allowing for the maximum and minimum          annual increases.

To          allow for the maximum and minimum, inflation is assumed to have a lognormal          distribution with volatility 1.4%.

**Revaluation          of deferred pensions in excess of GMP which receive automatic increases**
 
 

The          price inflation assumption (subject to review if there is a significant          change in the level of this assumption).

**Expenses**
 
 

Insurance          premiums to cover the cost of death in service benefits, PPF premiums          and the administrative expenses of the Scheme will be paid by the employer.

 

 

4

 

 

 

**Pension          Adjustment**
 
 

For          those members who are participating in the Pension Adjustment (as defined          in the explanatory booklet received by members in August 2004), the          employer will pay to RPF additional contributions in lieu of the member          contributions that would otherwise have been payable and the National          Insurance saving arising from the Pension Adjustment (for the duration          of their participation in the Pension Adjustment).

**Financial          assumptions – summary**
 
 

A          summary of all the financial assumptions for calculating the technical          provisions for the informal update of the funding position at 31 December          2005, determined using the approach outlined above, is as follows:

 

 

 

**%          p.a.**

**Discount          rate on liabilities after retirement**

 

4.33%          p.a.

 

 

 

**Discount          rate on liabilities before retirement**

 

5.58%          p.a.

 

 

 

**Price          inflation**

 

2.86%          p.a.

 

 

 

**Salary          increases (excluding promotional increases)**

 

4.36%          p.a.

 

 

 

**Increases          to pensions in payment which receive price inflation up to a maximum          of 5% p.a.**

 

2.83%          p.a.

 

 

 

**Increases          to pensions in payment which receive price inflation up to a maximum          of 2.5% p.a.**

 

2.10%          p.a.

 

 

 

**Increases          to post-88 GMPs in payment**

 

2.37%          p.a.

 

 

 

**Revaluation          of deferred pensions in excess of GMP which receive automatic increases**

 

2.86%          p.a.

 

 

 

 

 

5

 

 

**Appendix B:**

**Demographic  assumptions for determining the technical   provisions**

 

**Pre-retirement****mortality**
 
 

An          appropriate recent table published by the Continuous Mortality Investigation          Bureau in respect of members of occupational pension schemes. For the          purposes of the first Statement of Funding Principles, the table used          will be the A92 table.

**Post-retirement          mortality**
 
 

An          appropriate recent table published by the Continuous Mortality Investigation          Bureau in respect of members of occupational pension schemes with allowance          for expected future improvements in longevity. For the purposes of the          first Statement of Funding Principles, the table used will be the PA92          tables projected by reference to the calendar year of the effective          date plus 20 years (for both future and current pensioners) further          adjusted by reference to the medium cohort.

**Leaving          service**
 
 

An          allowance is made according to an age-related scale. Sample rates are          shown below.

**Voluntary          early retirement**
 
 

An          allowance is made for voluntary early retirements before Normal Pension          Age. Sample rates are shown below.

**Ill-health          early retirement**
 
 

An          allowance is made for early retirements before Normal Pension Age on          grounds of ill-health. Sample rates are shown below.

**Age          difference of****spouse**
 
 

Husbands          are assumed to be one year older than their wives.

**Percentage          married at death**
 
 

85%          of members are assumed to be married at retirement, and 93.5% of members          are assumed to be married on death before retirement.

**Commutation**
 
 

Each          member is assumed to commute 20% of their pension on retirement.

**Sample          rates**
 
 

The          tables below illustrate the allowances made for withdrawals, deaths          before retirement and retirements from service at various ages.

 

 

6

 

 

**Men**

 

 

**Percentage leaving the scheme in the next year as a result of**

**Current age**

**Withdrawal****from service****%**

**Death before****retirement****%**

**Ill health****retirement****%**

**Early retirement****%**

**20**

15.0

0.1

0.0

None

**25**

12.5

0.1

0.0

None

**30**

10.0

0.1

0.0

None

**35**

7.5

0.1

0.0

None

**40**

5.0

0.1

0.0

None

**45**

2.5

0.1

0.1

None

**50**

None

0.3

0.1

None

**55**

None

0.4

0.2

3.0

**56**

None

0.5

0.2

3.5

**57**

None

0.6

0.2

4.0

**58**

None

0.6

0.2

4.5

**59**

None

0.7

0.3

5.0

**60**

None

0.7

0.3

19.9

**Women**

 

 

**Percentage leaving the scheme in the next year as a result of**

**Current age**

**Withdrawal****from service****%**

**Death          before****retirement****%**

**Ill          health****retirement****%**

**Early          retirement****%**

**20**

22.5

0.0

0.0

None

**25**

18.7

0.0

0.0

None

**30**

15.0

0.0

0.0

None

**35**

11.2

0.0

0.1

None

**40**

7.5

0.1

0.1

None

**45**

3.7

0.1

0.1

None

**50**

None

0.2

0.2

None

**55**

None

0.3

0.3

6.0

**56**

None

0.3

0.4

7.0

**57**

None

0.4

0.4

8.0

**58**

None

0.4

0.5

9.0

**59**

None

0.4

0.5

10.0

**60**

None

0.5

0.5

10.9

 

**Life          expectancy of retired members**

 

 

The rates shown below are life expectancies for retired members from 2006 measured in years:

 

 

**Current          age**

**Life          expectancy of****male pensioners**

**Life          expectancy of****female pensioners**

 

**60**

27.0

29.8

 

**65**

22.3

25.1

 

**70**

17.9

20.6

 

**75**

13.9

16.4

 

**80**

10.2

12.5

 

**85**

7.2

9.2

 

**90**

4.9

6.5

 

**95**

3.5

4.7

 

**100**

2.6

3.5

 

 

 

 

7

 
**Appendix C:**

**Details of discretionary pension increase mechanism**

 

 

 

 

 

 

 

 

 

**Introduction**

 

 

This          Appendix represents a summary of the terms in the Funding Agreement          between the Trustees and employer on providing discretionary pension          increases.

 

 

 

 

 

 

**Discretionary          pension increase in 2006**

 

 

The          employer and the Trustees agree that (subject to payment of the contribution          of £153.2m by the employer) a discretionary increase of 2.7%          will be provided under RPF Rule l lc as set out below, subject to the          Scheme Actuary recommending that a discretionary increase can be paid,          on:

**•**         that          part of any pension in payment (or postponed under Rule 25) which is          not subject to automatic increases under the Scheme Rules or statute          in excess of any GMP in payment and

**•**         if          a deferred pension exceeds the value for money guarantee provided under          the Rules, any part of that deferred pension in excess of any GMP which          is not subject to automatic increases under the Scheme Rules or statute.

In          addition, pensions in payment relating to service after 5 April 2005          will receive a discretionary increase of 0.2% (i.e. the difference between          2.7% and 2.5%).

The          increase will be paid in July 2006 but will be backdated to May 2006.

 

 

 

 

 

 

**Policy          on discretionary increases and funding strategy until 31 December 2010**

 

 

The          Company and the Trustees agree that a funding check will be made by          the Scheme Actuary during the first three months of each calendar year          to assess as at the preceding 31 December the amount (the “Surplus”)          (if any) by which the assets in the RPF exceed the technical provisions.

The          first such funding check will undertaken in 2007 and the last in 2010.          The Scheme Actuary’s report in this regard will be addressed jointly          to the Trustees and the employer. In calculating this, the Scheme Actuary          will use:-

**•**         The          actuarial basis (“the Basis”) used for determining contributions          to the Scheme which is current at the date of the relevant funding check.          As at the date of this statement that basis is the same as set out in          this statement for calculating the Scheme’s technical provisions.          For the avoidance of doubt, the technical provisions determined for          this purpose includes the reserve which will build up as a consequence          of using the Attained Age Method; or

**•**         Such          alternative actuarial basis (after allowing for changes in market yields          that are incorporated in the basis) as the Scheme Actuary

 

 

 

 

 

 

8

 
 

 

 

 

considers          appropriate for the ongoing funding of the RPF. Any alternative basis          will not, without the consent of the employer, be weaker (less conservative)          than the Basis which is current at that time.

If          the employer has not yet paid the second special contribution due under          the funding agreement with the Trustees at the effective date of the          2007 funding check, the funding check will be calculated on the basis          that a notional special contribution (calculated as at the effective          date of the funding check in accordance with the agreement) is due and          part of the assets.

If          the funding check reveals a Surplus, the employer agrees that the Trustees          may (subject to the consent of the Scheme Actuary) use up to 40% of          any Surplus to provide under RPF Rule 11c a discretionary increase on          “Relevant Pensions” namely:

**•**        that          part of any pension in payment (or postponed under rule 25) in excess          of any GMP which is not subject to automatic increases under the Scheme          rules or statute in excess of any GMP in payment, and

**•**        that          part of any pension in payment relating to service after 5 April 2005;          and

**•**        if          a deferred pension exceeds the value for money guarantee provided under          the Rules, any part of that deferred pension in excess of any GMP which          is not subject to automatic increases under the Scheme rules or statute

on          the basis set out below, with effect from 1 January in the relevant          year, subject to the following conditions:

**•**        Relevant          Pensions which are not subject to automatic increases may be increased          by a maximum of the change in RPI in the year to the preceding September,          subject to a maximum increase of 5% (“5% LPI”);

**•**        Relevant          Pensions relating to pensionable service after 5 April 2005 which are          subject to statutory increases in line with the change in RPI in the          year to the preceding September, subject to a maximum increase of 2.5%          (“2.5% LPI”) may be further increased to bring them up to          5% LPI, subject to the employer’s consent;

**•**        Catch-up          increases (that is, increases which could have been payable under either          of the above conditions in previous years from 2007 onwards, but which          were not paid owing to there not being sufficient Surplus) may be granted          subject to the employer’s consent;

**•**        If          a discretionary increase is granted in accordance with the previous          conditions, then the Trustees undertake to adjust, for the purpose of          the next annual funding check, the valuation assumptions as to the proportion          of assets invested in growth assets so that the value placed on the          technical provisions is increased by 150% of the amount of Surplus used          to provide the discretionary increase. The calculation of the technical          provisions under this Statement will be

 

 

 

 

 

 
  
9

 

 

 

 

 

 

adjusted          in the same way; and

**•**        The          cost of the increase awarded in any year in respect of deferred pensions          may not exceed £100,000.

The          Trustees agree with the employer that they will not, before 31 December          2010, provide without both the employer’s consent and the Scheme          Actuary’s recommendation any discretionary pension increases in          excess of those detailed above.

 

 

 

 

 

 

 

 

10