COMBINED FINANCIAL STATEMENTS > NOTES TO THE COMBINED FINANCIAL STATEMENTS 50 REED ELSEVIER ANNUAL REPORTS & FINANCIAL STATEMENTS 2003 At 31 December 2003, the aggregate net deficit in respect of the defined benefit schemes under FRS17 comprised £189m/ € 268m (2002: £66m/ € 101m) in respect of funded schemes and liabilities of £62m/ € 88m (2002: £71m/ € 109m) in respect of unfunded schemes, of which £52m/ € 74m (2002: £52m/ € 80m) is provided for within creditors under SSAP24. At 31 December 2001, for the aggregate of schemes, the fair value of equities, bonds and assets, and the related assumed rates of return for those asset classes were £1,267m/ € 2,078m, £721m/ € 1,182m and £81m/ € 133m and 7.7%, 5.5% and 4.0% respectively. The net pension charge was £59m/ € 86m (2002: £59m/ € 94m). Pension contributions made in the year amounted to £49m/ € 72m (2002: £47m/ € 75m). The net SSAP24 charge on the main UK scheme comprises a regular cost of £23m/ € 33m (2002: £27m/ € 43m), less amortisation of the net actuarial surplus of £13m/ € 19m (2002: £24m/ € 38m). Based on the advice of the scheme actuaries, and with the agreement of the scheme trustees, no employer contributions have been made to the main UK scheme in 2003 (2002: nil) and, with effect from 1 January 2004, employer contributions will be made at a rate of 5% of pensionable salaries until the next triennial valuation in 2006. A prepayment of £115m/ € 163m (2002: £125m/ € 191m) is included in debtors falling due after more than one year, representing the excess of the net pension credit to the profit and loss account since 1988 over the amounts funded to the main UK scheme. Pension costs are accounted for in accordance with the UK accounting standard, SSAP24. A new UK financial reporting standard, FRS17: Retirement Benefits requires additional information to be disclosed based on methodologies set out in the standard which are different from those used under SSAP24 and by the scheme actuaries in determining funding arrangements. The assumed rates of return on scheme assets, the fair value of those assets and the present value of the scheme liabilities based on the methodologies and presentation prescribed by FRS17 were as follows: Pension schemes  (continued) 4 Main UK Scheme Aggregate of Schemes Assumed rate of Assumed rate of return on assets £m € m return on assets £m € m 2003 Equities 7.8% 1,050 1,491 8.0% 1,341 1,904 Bonds 4.8% 442 628 5.0% 639 907 Other 4.3% 38 54 4.6% 50 72 Total fair value of assets 1,530 2,173 2,030 2,883 Present value of scheme liabilities (1,588) (2,255) (2,281) (3,239) Net deficit (58) (82) (251) (356) Related deferred tax 17 24 84 119 Net pension liability (41) (58) (167) (237) Main UK Scheme Aggregate of Schemes Assumed rate of Assumed rate of return on assets £m € m return on assets £m € m 2002 Equities 9.0% 825 1,262 9.0% 1,068 1,634 Bonds 4.5% 487 745 4.9% 670 1,025 Other 3.8% 45 69 3.8% 53 81 Total fair value of assets 1,357 2,076 1,791 2,740 Present value of scheme liabilities (1,305) (1,996) (1,928) (2,950) Net surplus/(deficit) 52 80 (137) (210) Related deferred tax (16) (25) 50 77 Net pension asset/(liability) 36 55 (87) (133)