Table:
|  | 2019 | 2018 | 2017 |
| --- | --- | --- | --- |
| Year ended 31 March | £m | £m | £m |
| Recognised in the income statement before specific items |  |  |  |
| Service cost (including administration expenses & PPF levy: |  |  |  |
| defined benefit plans | 135 | 376 | 281 |
| defined contribution plans | 476 | 265 | 240 |
| Past service credit a | – | (17) | – |
| Subtotal | 611 | 624 | 521 |
| Recognised in the income statement as specific items (note 10) |  |  |  |
| Costs to close BT Pension Scheme and provide transition paymentsb for affected employees | 23 | – | – |
| Cost to equalise benefits between men and women due to guaranteed minimum pension (GMP) c | 26 | – | – |
| Net interest expense on pensions deficit included in specific items | 139 | 218 | 209 |
| Subtotal | 188 | 218 | 209 |
| Total recognised in the income statement | 799 | 842 | 730 |
Paragraphs:
Amounts in the financial statements Group income statement
The expense or income arising from all group retirement benefit arrangements recognised in the group income statement is shown below.
a Relates to the removal of future indexation obligations following changes to the benefits provided under certain pension plans operating outside the UK in 2017/18. b All employees impacted by the closure of the BTPS receive transition payments into their BTRSS pot for a period linked to the employee’s age. There was no past service cost or credit on closure due to the assumed past service benefit link as an active member being the same as that assumed for a deferred member.
c In October, a High Court judgment involving the Lloyds Banking Group’s defined benefit pension schemes was handed down, resulting in the group needing to recognise additional liability to equalise benefits between men and women due to GMPs, in common with most UK defined benefit schemes.
Question:
Why was there no past service cost or credit on closure of the BTPS?
Answer: There was no past service cost or credit on closure due to the assumed past service benefit link as an active member being the same as that assumed for a deferred member.