scheme registration number: 10170256 for the year … · 2016. 9. 12. · schlumberger uk pension...

SCHLUMBERGER UK PENSION SCHEME

ANNUAL REPORT AND FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 DECEMBER 2015

SCHEME REGISTRATION NUMBER: 10170256


CONTENTS

YEAR ENDED 31 DECEMBER 2015

Contents Page

Trustee and advisers 1

Trustee’s report 2

DC Governance statement 11

Actuarial certificate of schedule of contributions 14

Trustee’s summary of contributions 15

Independent auditors’ statement about contributions 16

Independent auditors’ report 17

Fund account 19

Statement of net assets (available for benefits) 20

Notes to the financial statements 21

Appendix

Trustee’s report and financial statements of the SchlumbergerUK Common Investment Fund


TRUSTEE AND ADVISERS


Principal Employer Schlumberger Plc

Corporate Trustee Schiumberger Trust Company Limited

Trustee Directors Company appointed:K BrimsG GordonR McGillG ParkA Pitt (appointed 11 May 2016, previously member

nominated)R RahimS SmokerG SmythP Taylor (resigned 25 May 2015)

Member nominated:S White (Chairman)H Davies (resigned 27 April 2015)A Forbes (appointed 26 July 2016)L NicoliC Williams (appointed 26 July 2016)

Secretary to the Trustee J HaylettP Droy-Moore (resigned 31 December 2015)

Administrators Towers Watson Limited

Actuary I Skinner, Towers Watson Limited

Independent auditors PricewaterhouseCoopers LLP

Legal advisers Simmons & Simmons LLPKeystone Law

Investment advisers KPMG LLP

Investment manager Schlumberger Common Investment Fund Limited

Investment custodian The Northern Trust Company

AVC providers Aviva Life Services UK LimitedThe Equitable Life Assurance Society

Bankers HSBC Bank Plc

There are written agreements in place between the Trustee and each of the Scheme advisers listedabove and also with the Principal Employer.

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TRUSTEE’S REPORT


Introduction

The Trustee of the Schiumberger UK Pension Scheme (the “Scheme”) presents its annual reporttogether with the actuarial certificate and financial statements for the year ended 31 December 2015.

Scheme constitution and management

The Scheme comprises two sections, a money purchase section (“Orange”) and a hybrid section(“Blue”), which comprises a final salary section and a money purchase section. Under the final salarysection, benefits are based on length of service and final pensionable salary. The money purchasesections provide the employee with a pension which can be bought with the capital sum which theemployee accumulates in an individual retirement savings account. The capital sum is built up fromcontributions to the Scheme bythe employee and employer plus any moneytransferred by the employeeinto the Scheme from previous arrangements plus the cumulative investment return. Amounts invested

from both sections are invested in the Schlumberger UK Common Investment Fund (‘SCIF”), which is

administered by the Trustee of the SCIF. Since 1 April 2012, the payment of contributions has been

operated on a salary sacrifice basis.

The Scheme is a “registered pension scheme” under the Finance Act 2004 and to the Trustee’sknowledge there is no reason why this registration should be prejudiced or withdrawn. The Blue section

of the Scheme was contracted out of the State Second Pension under a certificate issued by the NationalInsurance Contributions Office until 6 April 2016 when contracting out ceased. The Orange section of

the Scheme ceased to contract out with effect from 6 April 2012 following the Government’s decision to

withdraw the ability for defined contribution schemes to contract out of the State Second Pension.

Changes to the Scheme

There were no significant changes to the Scheme during the year.

Trustee

The Trustee of the Scheme is a corporate Trustee, Schiumberger Trust Company Limited. The power

of appointment and removal of the Trustee rests with the Principal Employer. The power to appointand remove the Directors of the Trustee Company is set out in the Company’s Articles of Associationand per the Member Nominated Trustee requirements as laid down by the Pensions Act 2004. The

Trustee is responsible for the administration and investment policy of the Scheme.

Financial developments and financial statements

The financial statements have been prepared and audited in compliance with the regulations made

under sections 41(1) and 41(6) of the Pensions Act 1995.

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TRUSTEE’S REPORT (continued)


Statement of Trustee’s responsibilities

Trustee’s responsibilities in respect of the financial statements

The financial statements, which are prepared in accordance with UK Generally Accepted AccountingPractice, including the Financial Reporting Standard applicable in the UK and Republic of Ireland (“FRS102”), are the responsibility of the Trustee. Pension scheme regulations require the Trustee to makeavailable to Scheme members, beneficiaries and certain other parties, audited financial statements foreach Scheme year which:

• show a true and fair view of the financial transactions of the Scheme during the Scheme year andof the amount and disposition at the end of the Scheme year of its assets and liabilities, other thanliabilities to pay pensions and benefits after the end of the Scheme year;

• state whether applicable United Kingdom Accounting Standards, including FRS 102, have beenfollowed, subject to any material departures disclosed and explained in the financial statements;and

• contain the information specified in Regulations 3 and 3A of the Occupational Pension Schemes(Requirement to obtain Audited Accounts and a Statement from the Auditor) Regulations 1996.

The Trustee is responsible for supervising the preparation of the financial statements and for agreeingsuitable accounting policies, to be applied consistently, making any estimates and judgements on aprudent and reasonable basis.

The Trustee is also responsible for making available certain other information about the Scheme in theform of an annual report.

The Trustee also has a general responsibility for ensuring that adequate accounting records are keptand for taking such steps as are reasonably open to it to safeguard the assets of the Scheme and toprevent and detect fraud and other irregularities, including the maintenance of an appropriate system ofinternal control.

Trustee’s responsibilities in respect of contributions

The Trustee is responsible under pensions legislation for preparing, and from time to time reviewing andif necessary revising, a schedule of contributions showing the rates of contributions payable towards theScheme by or on behalf of the employer and the active members of the Scheme and the dates on orbefore which such contributions are to be paid.

The Trustee is also responsible for keeping records in respect of contributions received in respect ofany active member of the Scheme and for adopting risk-based processes to monitor whethercontributions that fall due to be paid are paid into the Scheme in accordance with the schedule ofcontributions.

Where breaches of the schedule occur, the Trustee is required by the Pensions Acts 1995 and 2004 toconsider making reports to the Pensions Regulator and to members.




Membership

The changes in membership during the year are as follows:

Blue sectionActive Deferred

members members Pensioners TotalAt 1 January2015 938 6,334 3,819 11,091Adjustments to prior year (9) 14 15 20New members 9 9Retirements (31) (169) 200 —

Members leaving - deferred (153) 153 — —

Deaths (3) (5) (110) (118)New spouses and dependants pensions — — 44 44Transfers out — (75) (1) (76)Commutations (1) (37) (4) (42)

At31 December2015 750 6,215 3,963 10,928

Orange sectionActive Deferred

members members Pensioners TotalAt 1 January2015 3,154 7,463 242 10,859Adjustments to prior year (33) 13 — (20)New members 371 371Retirements (2) (14) (16)Members leaving - deferred (551) 551 — —

Deaths — (3) (2) (5)New spouses and dependants pensions 3 3Transfers out — (164) — (164)Commutations — (12) (1) (13)

At31 December2015 2,939 7,834 242 11,015

Total membership as at 31 December2015 3,689 14,049 4,205 21,943

Adjustments to prior year represents movements in membership relating to the previous year whichwere not notified at the time that last year’s report was produced. In the case of the Orange sectionactive members, the adjustment relates to a reconciliation between the records of the administrator andthe Principal Employer.

Some members have taken a phased retirement as a result of which they have been re-enrolled intothe Blue section.

Members are able to purchase external annuities on retirement from both sections of the Scheme andare therefore shown in the above tables as retirements in the active and deferred columns but do notthen feature as becoming new pensioners of the Scheme.

The pensioners at 31 December 2015 shown in the tables above include 593 spouses and dependantspensioners in the Blue section and 46 spouses and dependants pensioners in the Orange section.

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Pension increases

Pensions in payment in excess of the Guaranteed Minimum Pension were increased as follows duringthe year:

Former Camco members - 3.0% at 1 April 2015Other members

- 1 .6% at 1 April 2015 for service up to 5 April 2006All members

- 1 .6% at 1 April 2015 for service after 5 April 2006

In addition to the post 5 April 2006 increase shown above, Blue section pensioners received adiscretionary increase of 0.1%.

Post 5 April 1988 Guaranteed Minimum Pension increases of 1 .2% were given at 1 April 2015. Therewere no discretionary increases.

Cash equivalents

Cash equivalents paid during the Scheme year with respect to transfers have been calculated andverified in the manner prescribed by the Pension Schemes Act 1993 and include an implicit allowancefor discretionary benefits of RPI (Retail Prices Index) against LPI (Limited Price Indexation) on pensionsin payment. No other discretionary benefits are included in the calculation of transfer values.

C-,

Actuarial liabilities

Under section 222 of the Pensions Act 2004, every scheme is subject to the Statutory Funding Objective,which is to have sufficient and appropriate assets to cover its technical provisions, which represent thepresent value of benefits to which members are entitled based on pensionable service to the valuationdate. This is assessed using the assumptions agreed between the Trustee and the Employer and setout in the Statement of Funding Principles, which is available to Scheme members on request.

Part 3 of the Pensions Act 2004 and the Occupational Pension Schemes (Scheme Funding) Regulations2005 requires the Scheme to have:

• sufficient and appropriate assets to meet the Scheme’s technical provisions (present value of theliabilities) - this is known as the “Statutory Funding Objective”;

• a Statement of Funding Principles (“SFP”) covering the policy in relation to funding and the methodand assumptions by which the technical provisions are determined; and

• an actuarial valuation at least every 3 years with interim reports for intervening years.

The Scheme Actuary has carried out a formal valuation under the SEP with an effective date of 31December 2013. A summary of the last formal valuation from the Scheme Actuary is set out below:

The value of the Technical Provisions (excluding PMF benefits) was £999.8m.

The value of the assets (excluding PMF assets) was £961 .2m.

The assets of the Scheme were not sufficient to meet the Technical Provisions at the valuation date.The deficit was £38.6m corresponding to a funding level of 98% (or 96% if Personal Money Fund (‘PMF”)assets and benefits are excluded).

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Method and assumptions

The method and significant actuarial assumptions used to determine the technical provisions are as

follows (all assumptions adopted are set out in the Appendix to the Statement of Funding Principles).

Method

The actuarial method used in the calculation of the technical provisions is the attained age method.

Significant actuarial assumptions

Discount interest rate: Term-dependent rates set by reference to the nominal gilt curve at the valuation

date plus an addition of 0.8% per annum over 2014 reducing each year linearly to a long-term addition

of 0.4% pa over 2039 and beyond.

Future retail price inflation: Term-dependent rates derived from the nominal and index-linked gilt yield

curves at the valuation date.

Future consumer price inflation: Term-dependent rates derived from the assumption for future retail

price inflation less an adjustment equal to 1.0% per annum.

Pension increases:

• Pre-6 April 2006 non-GMP Derived from the term-dependent rates for future price retailinflation with a deduction of 0.1% pa

• Post-5 April 2006 non-GMP 2.5% pa• Post-5 April 1988 GMP Derived from the term-dependent rates for future consumer

price inflation with a deduction of 0.2% pa

Pay increases: General pay increases of 1.15% per annum above the term-dependent rates for the

future retail price inflation.

Mortality - base tables: For the period in retirement, standard tables S1PMA with a scaling factor of

105% for male members; and Si PEA with a scaling factor of 105% for female members, projected from

2002 to 2011 in line with the CMI 2011 core projection model and from 2011 to 2014 in line with the CMI

2013 core projection model, in either case with an assumed long-term mortality improvement trend of

1.5% per annum.

The Trustee and Employer have agreed that the Recovery Plan will make good the deficit over a period

of 5 years from the valuation date to 31 December 2018. The additional employer contributions required

amount to £5m per annum payable within 14 days of 31 December each year, from 31 December 2013

up to (and including) 31 December 2018. A revised schedule of contributions was agreed on 17

September 2014 which incorporates these amounts.

A copy of the latest certificate issued by the Scheme Actuary confirming the adequacy of contributions

for the purposes of the Statutory Funding Objective is reproduced on page 14.

The next full actuarial valuation as at 31 December 2015 is in progress.

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Investment management

Investment managers

The Trustee determines the broad investment policy and retains Schlumberger Common InvestmentFund Limited (SCIFL) to invest the Scheme’s assets in the Schlumberger UK Common Investment Fund(SOlE) in keeping with the Trustee’s investment objectives. Broadly the Scheme’s investment objectivescan be summarised as follows:

• to invest in assets of appropriate liquidity which will generate income and capital growth to meet,together with new contributions, the cost of benefits; and

• to limit the risk of failing to meet liabilities in the long term.

By using SCIF, which offers a number of specific investment pools (such as global equities, global fixedincome, index-linked gilts and alternative investment classes such as private equity, property, distresseddebt and direct lending) employing a wide range of managers who have been chosen for their expertisein particular investment assets (such as bonds, equities and cash) or regions (UK, USA etc.), the Trusteeexpects to reduce the risks associated with using a single manager or investment style.

The investment adviser and investment managers appointed by Schlumberger Common InvestmentFund Limited are all appropriately authorised under the Financial Services and Markets Act 2000.

Investment principles

The Trustee has produced a Statement of Investment Principles as required by section 35 of thePensions Act 1995 and this is available on request from the contact address set out on page 12.

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Review of investment performance

The table below shows the performance of the sections of the Scheme over various periods relative tothe appropriate benchmarks:

Percentage returns 1 year 3 years 5 years%pa %pa %pa

Final salary section 2.7 8.7 7.7Benchmark return 3.3 8.8 8.1

The following returns relate to funds of the money purchase section:

1 year 3 years 5 years0/ 0/ 0/10 /0 /0

UK Equity Fund 1.3 7.8 6.9Benchmark return 1.0 7.3 6.0

Global Equity Fund 4.7 12.4 8.3Benchmark return 3.7 11.5 7.9

Index Linked Gilts Fund (1.1) 6.4 8.4Benchmark return (1.2) 6.5 8.4

Balanced Multi Asset Fund 2.3 8.7 7.8Benchmark return 1.8 8.2 7.4

Short Term Cash Fund 0.3 0.3 0.3Benchmark return 0.4 0.4 0.4

Core Bond Fund 1.3 4.3 7.1Benchmark return 0.5 3.8 6.0

Further information regarding the Scheme’s investments in SCIF are given in the SCIF’s Annual Reportfor the year ended 31 December 2015, which is included as an appendix to this Annual Report.

Socially responsible investments

SCIFL has delegated responsibility for the selection, retention and realisation of investments to theinvestment managers. The extent to which social, environmental or ethical considerations are taken intoaccount in these decisions is left to the discretion of the investment managers, acting within theguidelines and objectives set by SCIFL.

The Trustee expects that the extent to which social, environmental or ethical issues may have a financialimpact on the portfolio will be taken into account by the investment managers in the exercise of theirdelegated duties.

Exercising of rights

The Trustee has delegated responsibility for the exercising of rights (including voting rights) attachingto investments to the investment managers appointed by SCIFL.

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Custodial arrangements

Investments of the Scheme are held in SCIF. Northern Trust acts as custodian for all investments withinSOlE. Further details regarding the custodian are given in the SCIF’s report included as an appendix tothis Annual Report.

Employer related investments

There were no direct employer related investments at the year end (2014: Nil). Details of employerrelated investments within pooled investment vehicles are given on page 11 of the Schlumberger UKCommon Investment Fund financial statements, which are attached as an appendix to this AnnualReport.

The Pension Tracing Service, TPAS, the Pensions Ombudsman and The Pensions Regulator

In accordance with the Occupational and Personal Pension Schemes (Disclosure of Information)Regulations 2013, members are advised that:

• information regarding the Scheme has been given to the Pension Tracing Service;

• the Pensions Advisory Service (TPAS) of 11 Belgrave Road, London, SW1V 1 RB is able to assistmembers and beneficiaries with difficulties which they cannot resolve with the Trustee or theScheme administrator (e mail: [email protected]);

• the Pensions Ombudsman of 11 Belgrave Road, London, SW1V 1RB may investigate anddetermine any complaint or dispute of fact or law which they have failed to resolve with the Trusteeor the Scheme administrator, in relation to an occupational pension scheme (email:enquiriespensions-ombudsman.org.uk).

In addition to the above The Pensions Regulator regulates company pension schemes and enforces thelaw as it relates to them. It has wide ranging powers which include the power to:

• suspend, disqualify and remove a trustee, or director of a trustee company, for consistently notcarrying out their duties;

• wind up schemes where necessary;

• apply for injunctions to prevent the misuse and misappropriation of Scheme assets and apply forrestitution where necessary.

Internal disputes resolution procedures

A disputes resolution procedure has been agreed by the Trustee to resolve any queries raised bybeneficiaries or potential beneficiaries of the Scheme and details of this can be obtained by writing tothe contact below.

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Contact for further information

Any queries or complaints about the Scheme, including requests from individuals for information abouttheir benefits or for a copy of Scheme documentation, should be sent to:

Towers Watson LimitedP 0 Box 545Red hillSurreyRHI IYX

e mail: [email protected]

Signed for and on behalf of Schlumberger Trust Company Limited by:

Trustee Director./2 Trustee Director

Date2 )‘r1’i

Date

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DC GOVERNANCE STATEMENT


This statement has been prepared by the Trustee of the Schiumberger UK Pension Scheme (the“Scheme”) in order to demonstrate how the Scheme has complied with the governance standardsintroduced under The Occupational Pension Schemes (Charges and Governance) Regulations 2015This Statement applies to both the ‘Blue Section’ and the ‘Orange Section’ of the Scheme.

General investment principles

The Trustee’s general investment principles are as follows:

• To offer a suitable default strategy appropriate for the profile of the defaulting members that takesinto account their expected risk tolerances; and

• The range of self - select investment options (including alternative self-select lifestyle strategies)should be appropriate for the profile of most members.

Investment strategy - relating to the Schemes default investment option

Although members have the choice of where to invest, the Trustee must also make available a defaultinvestment strategy.

The last formal review of the Scheme’s default strategy was undertaken in Q4 2015. The Trustee, inconjunction with its investment advisers, carried out detailed membership analysis to assess the overallrisk profile and provide a reasonable indication of how, proportionately, members were expected to taketheir benefits in retirement. As a result of this review, changes were made to the default strategy. Thisincluded a greater level of asset diversification throughout the lifestyle term and a gearing towardsmatching the default investment strategy with drawdown at retirement. Additional alternate strategiesare available for members that target conversion to an annuity and for the payment of a lump sum. Thenew default strategy was introduced in March 2016.

The objective of the default strategy is to provide a reasonable level of capital growth through exposureto equities and diversified assets in the growth phase. This will continue, but with reducing growth andincreased protection, in the seven years leading up to retirement.

A copy of the Scheme’s Statement of Investment Principles, including those relating to the defaultstrategy, is available upon request.

Investment monitoring

The Trustee delegates detailed investment oversight to Schlumberger Common Investment FundLimited (SCIFL) but also maintains an investment sub-committee to carry out appropriate investmentmonitoring. SCIFL takes advice from professional investment advisers to ensure that it has theappropriate knowledge, competency and experience to manage the Scheme’s assets.

The Trustee reviews both the performance of the default strategy and the funds underlying the defaultarrangement on a regular basis, formally at least every quarter, and a general review every month.

SCI FL jointly with the investment sub-committee monitors the performance of the investment managers,in conjunction with their advisers, against the agreed performance objectives, the Trustee may decideto replace an investment manager if they feel it is appropriate, for example, following a period of poorperformance relative to its respective benchmark.

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DC GOVERNANCE STATEMENT (continued)


Financial transactions

The Trustee regularly monitors the core financial transactions of the Scheme. These include theinvestment of contributions, transfers into and out of the Scheme, fund switches and payments out ofthe Scheme to and in respect of members.

This is achieved through the review of quarterly reporting from the Scheme’s administrator and themonthly monitoring of contribution payments calculated and paid to the administrator by Schlumberger.In addition, the Scheme’s financial statements are also audited annually by the Scheme’s appointedauditors, PwC.

Willis Towers Watson has undertaken an independent review of the Scheme’s governance processesand internal controls and has confirmed that they are compliant with the Pensions Regulator’s DC Codeof Practice No. 13 on governance and administration (paragraphs 206 to 225). The Scheme is alsocompliant with the Code of Practice No. 5 on reporting late payments of contributions and with therelevant legislation. In the past the Trustee also carried out a review of the outsourced administration ofthe Scheme. No significant areas of concern were reported. A further audit on this area is planned for2016.

Based on the above, the Trustee is satisfied that the Scheme’s core financial transactions have beenprocessed promptly and accurately during the scheme year.

Charges and transaction costs

Schiumberger absorbs all investment and administration charges on behalf of members of the Scheme.

The Trustee regularly monitors the fund charges which are paid by the Company to ensure they remainreasonable and consistent.

Transaction costs are those incurred by fund managers as result of buying, selling, lending or borrowinginvestments. These costs are incorporated and ultimately reflected through the unit price for each of thefunds.

The industry is still determining how best to provide member borne transaction costs. Pensionproviders and fund managers are awaiting further details from the joint DWP/FCA consultation ontransactions costs before taking further action. The Trustee is working with its investment managers toobtain further details and clarity of the transaction costs, so these can be included within future Chair’sstatements.

Value for Money (VFM)

The Trustee is committed to ensuring that members receive VFM from the Scheme. The Trustee hasactively considered this area and believes the Scheme offers good VFM. Schlumberger pays all of theadministration and investment managers’ costs of the Scheme. This is a defining feature of the Schemewhich the Trustee believes is a key factor in providing good VFM for members.

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DC GOVERNANCE STATEMENT (continued)


Truste&s knowledge and understanding (TKU)

The Trustee has a TKU process in place which enables them to exercise its functions as Trustee of theScheme. The Trustee’s approach to meeting the TKU requirements includes:

• Regular training incorporated into planned meetings.• Training from its advisers on topical items is provided as and when required.• All training and attendance at appropriate seminars is recorded under the minutes of the formal

Trustee quarterly meetings.• All Scheme documents are reviewed by the Trustee and available on the dedicated Trustee site.• The majority of Trustee directors have completed the Pensions Regulator’s trustee toolkit.• Trustee receives general updates from its advisers about matters relevant to the Scheme.

Each Trustee director undertook a TKU self-assessment in 2015 to identify knowledge gaps and trainingneeds. Following this self-assessment, the Trustee arranges appropriate training to address the areasthat require further training and knowledge.

Willis Towers Watson has undertaken an independent assessment of the TKU process and hasconfirmed that it meets the regulatory standards and is therefore compliant with the PensionsRegulator’s DC Code of Practice no 13 (paragraphs 27-58) and the Code of Practice no 7 on TKU.

Approved by the Trustee on and signed on their behalf by:

S WhiteChairman

Date: f .-o (

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ACTUARIAL CERTIFICATE OF SCHEDULE OF CONTRIBUTIONS

Actuarial Certification of the Schedule of Contributions

Name of Scheme: Schlumberger UK Pension Scheme

Adequacy of rates of contributions

1 I certify that, in my opinion, the rates of contributions shown in this schedule of contributions aresuch that the statutory funding objective could have been expected on 31 December 2013 to bemet by end of the period specified in the recovery plan dated 5 September 2014.

Adherence to statement of funding principles

2 I hereby certify that, in my opinion, this schedule of contributions is consistent with the Statementof Funding Principles dated 5 September 2014.

The certification of the adequacy of the rates of contributions for the purpose of securing that thestatutory funding objective can be expected to be met is not a certification of their adequacy for thepurpose of securing the scheme’s liabilities by the purchase of annuities, if the scheme were to be woundup.

I R Skinner Watson HouseFellow of the Institute and Faculty of Actuaries London RoadTowers Watson Limited Reigate

Surrey17 September 2014 RH2 9PQ

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TRUSTEE’S SUMMARY OF CONTRIBUTIONS


Trustee’s summary of contributions

This summary of contributions has been prepared by, or on behalf of, and is the responsibility of theTrustee. It sets out the employer and member contributions payable to the Scheme under the scheduleof contributions certified by the actuary on 17 September 2014 in respect of the Scheme year ended31 December 2015. The Scheme auditors report on contributions payable under the schedule in theirauditors’ statement about contributions on page 16.

Contributions payable under the schedule in respect of the Scheme yearMoney

Final salary purchasesection section Total

£000 £‘OOO £‘OOO

EmployerNormal contribution 15,985 25,038 41,023Additional contribution 213 - 213Deficit funding contribution 5,000 - 5,000

EmployeeNormal contribution 50 182 232

Contributions payable under the schedule 21,248 25,220 46,468

Reconciliation of contributions

Reconciliation of contributions payable under the schedule to the total contributions payable to theScheme in respect of the Scheme year:

MoneyFinal salary purchase

section section Total£000 £000 £‘OOO

Contributions payable under the schedule 21,248 25,220 46,468

Employer additional contribution - 8,254 8,254Employee additional voluntary contributions - 2,010 2,010Transfer of contributions 6,065 (6,065) -

27,313 29,419 56,732

Transfer of contributions relate to the administration and insurance element of the money purchasecontributions which are transferred to the final salary section, where the corresponding costs are borne.

Approved by the Trustee and signed on its behalf by:

Trustee Director Trustee Director

Date: Date:

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INDEPENDENT AUDITORS’ STATEMENT ABOUT CONTRIBUTIONS TO THE TRUSTEE


Statement about contributions

Our opinion

In our opinion, the contributions payable under by the schedule of contributions for the Scheme yearended 31 December 2015 as reported in the Schiumberger UK Pension Scheme’s summary ofcontributions have in all material respects been paid in accordance with the schedule of contributionscertified by the Scheme actuary on 17 September 2014.

What we have examined

Schlumberger UK Pension Scheme’s summary of contributions for the Scheme year ended31 December 2015 is set out on page 15.

Responsibilities for the statement about contributions

Our responsibilities and those of the Trustee

As explained more fully in the statement of Trustee’s responsibilities, the Scheme’s Trustee isresponsible for preparing, and from time to time reviewing and if necessary revising, a schedule ofcontributions and for monitoring whether contributions are made to the Scheme by the employer inaccordance with relevant requirements.

It is our responsibility to provide a statement about contributions and to report our opinion to you.

This report, including the opinion, has been prepared for and only for the Trustee as a body inaccordance with section 41 of the Pensions Act 1995 and for no other purpose. We do not, in giving thisopinion, accept or assume responsibility for any other purpose or to any other person to whom thisreport is shown or into whose hands it may come save where expressly agreed by our prior consent inwriting.

What an examination of the summary of contributions involves

Our examination involves obtaining evidence sufficient to give reasonable assurance that contributionsreported in the summary of contributions have, in all material respects, been paid in accordance withthe relevant requirements. This includes an examination, on a test basis, of evidence relevant to theamounts of contributions payable to the Scheme under the schedule of contributions and the timing ofthose payments.

We test and examine information, using sampling and other techniques, to the extent we considernecessary to provide a reasonable basis for us to draw conclusions. We obtain evidence through testingthe effectiveness of controls, substantive procedures or a combination of both.

PricewaterhouseCoopers LLPChartered Accountants & Statutory AuditorLondon

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INDEPENDENT AUDITORS’ REPORT TO THE TRUSTEE


Report on the financial statements

Our opinion

In our opinion, Schiumberger UK Pension Scheme’s financial statements:

• show a true and fair view of the financial transactions of the Scheme during the year ended31 December 2015, and of the amount and disposition at that date of its assets and liabilities, otherthan liabilities to pay pensions and benefits after the end of the year;

• have been properly prepared in accordance with United Kingdom Generally Accepted AccountingPractice; and

• contain the information specified in Regulations 3 and 3A of the Occupational Pension Schemes(Requirement to obtain Audited Accounts and a Statement from the Auditor) Regulations 1996,made under the Pensions Act 1995.

What we have audited

Schlumberger UK Pension Scheme’s financial statements comprise:

• the statement of net assets available for benefits as at 31 December 2015;

• the fund account for the year then ended; andCD

• the notes to the financial statements, which include a summary of significant accounting policiesand other explanatory information.

The financial reporting framework that has been applied in the preparation of the financial statements isapplicable law and United Kingdom Accounting Standards (United Kingdom Generally AcceptedAccounting Practice), including FRS 102 “The Financial Reporting Standard applicable in the UK andRepublic of Ireland”.

In applying the financial reporting framework, the Trustee has made a number of subjective judgements,for example in respect of significant accounting estimates. In making such estimates, it has madeassumptions and considered future events.

Responsibilities for the financial statements and the audit

Our responsibilities and those of the Trustee

As explained more fully in the statement of Trustee’s responsibilities, the Trustee is responsible for thepreparation of the financial statements and being satisfied that they show a true and fair view.

Our responsibility is to audit and express an opinion on the financial statements in accordance withapplicable law and International Standards on Auditing (UK and Ireland) (“ISAs (UK & Ireland)”). Thosestandards require us to comply with the Auditing Practices Board’s Ethical Standards for Auditors.

This report, including the opinion, has been prepared for and only for the Trustee as a body inaccordance with section 41 of the Pensions Act 1995 and for no other purpose. We do not, in giving thisopinion, accept or assume responsibility for any other purpose or to any other person to whom thisreport is shown or into whose hands it may come save where expressly agreed by our prior consent inwriting.

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INDEPENDENT AUDITORS’ REPORT TO THE TRUSTEE (continued)


What an audit of financial statements involves

We conducted our audit in accordance with ISAs (UK and Ireland). An audit involves obtaining evidenceabout the amounts and disclosures in the financial statements sufficient to give reasonable assurancethat the financial statements are free from material misstatement, whether caused by fraud or error. Thisincludes an assessment of:

• whether the accounting policies are appropriate to the Scheme’s circumstances and have beenconsistently applied and adequately disclosed;

• the reasonableness of significant accounting estimates made by the Trustee; and

• the overall presentation of the financial statements.

We primarily focus our work in these areas by assessing the Trustee’s judgements against availableevidence, forming our own judgements, and evaluating the disclosures in the financial statements.

We test and examine information, using sampling and other auditing techniques, to the extent weconsider necessary to provide a reasonable basis for us to draw conclusions. We obtain audit evidencethrough testing the effectiveness of controls, substantive procedures or a combination of both.

In addition, we read all the financial and non-financial information in the annual report to identify materialinconsistencies with the audited financial statements and to identify any information that is apparentlymaterially incorrect based on, or materially inconsistent with, the knowledge acquired by us in the courseof performing the audit. If we become aware of any apparent material misstatements or inconsistencieswe consider the implications for our report.

L(J

PricewaterhouseCoopers LLPChartered Accountants & Statutory AuditorLondon

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FUND ACCOUNT

FOR THE YEAR ENDED 31 DECEMBER 2015


section section Total Total2015 2015 2015 2014

Note £000 £000 £‘OOO £‘OOOContributions and benefitsEmployer contributions 27,263 27,227 54,490 59,735Employee contributions 50 2,192 2,242 2,570

Total contributions 3 27,313 29,419 56,732 62,305

Transfers in 4 — 281 281 1,628Other income 5 184 10 194 11

27,497 29,710 57,207 63,944

Benefits paid or payable 6 (20,876) (10,834) (31,710) (29,252)Transfers out to other schemes 7 (11,495) (17,763) (29,258) (12,906)Administrative expenses 8 (2,340) (2) (2,342) (2,655)

(34,711) (28,599) (63,310) (44,813)

Net (withdrawals)Iadditions fromdealings with members (7,214) 1,111 (6,103) 19,131

Returns on investmentsInvestment income 9 40 5 45 42Change in market value of investments 10 29,979 14,222 44,201 158,669Investment management expenses 11 (4,396) — (4,396) (4,967)

Net return on investments 25,623 14,227 39,850 153,744

Net increase in the fund during the year 18,409 15,338 33,747 172,875

Net assets of the SchemeAt 1 January2015 1,068,116 654,634 1,722,750 1,549,875Transfers between sections 13 2,368 (2,368) — —

At 31 December2015 1,088,893 667,604 1,756,497 1,722,750

The notes on pages 21 to 35 form part of these financial statements.

- 19-


STATEMENT OF NET ASSETS (AVAILABLE FOR BENEFITS)

AS AT 31 DECEMBER 2015

2015 2014Note £‘OOO £‘OOO

Final salary sectionInvestment assetsPooled investment vehicles 14 1,088,063 1,068,801

Total investments 1,088,063 1,068,801

Current assets 20 3,498 2,859

Current liabilities 21 (2,668) (3,544)

Net assets at 31 December 2015 1,088,893 1,068,116

Money purchase sectionInvestment assetsPooled investment vehicles 14 657,847 646,970Other investments 48 79AVC investments 15 4,013 4,281

661,908 651,330 3

Total investments 661,908 651,330

Current assets 20 6,280 4,532

Current liabilities 21 (584) (1,228)

Net assets at 31 December 2015 667,604 654,634

Total net assets of the Scheme (available for benefits) at31 December2015 1,756,497 1,722,750

The financial statements summarise the transactions of the Scheme and deal with the net assets at thedisposal of the Trustee. They do not take account of obligations to pay pensions and benefits whichfall due after the end of the Scheme year. The actuarial position of the Scheme, which takes into accountsuch obligations for the defined benefit section, is dealt with in the actuarial report on Scheme liabilitieson pages 8 and 9 of the Annual Report and these financial statements should be read in conjunctionwith this report.

The financial statements on pages 19 to 35 were approved by the Trustee and sigced on their behalfby:

The notes on pages 21 to 35 form part of these financial statements.

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NOTES TO THE FINANCIAL STATEMENTS


Basis of preparation

The individual financial statements have been prepared in accordance with the OccupationalPension Schemes (Requirement to obtain Audited Accounts and a Statement from the Auditor)Regulations 1996, Financial Reporting Standard 102 (FRS 102) - The Financial ReportingStandard applicable in the UK and Republic of Ireland issued by the Financial Reporting Counciland the guidance set out in the Statement of Recommended Practice (SORP)(Revised November2014). This is the first year that the Scheme has presented financial statements under FRS 102and the SORP. The last financial statements under existing UK GAAP and the previous SORP(revised May 2007) were for the year ended 31 December 2014. The transition date was 1 January2014. There was no effect on these financial statements other than additional disclosures.

In adopting FRS 102, the Trustee has adopted the provisions of ‘Amendments to FRS1O2, TheFinancial Reporting Standard applicable in the UK and Republic of Ireland - Fair value hierarchydisclosures (March 2016)’ early.

2. Summary of significant accounting policies

The principal accounting policies applied in the preparation of these financial statements are setout below. These policies have been consistently applied to all the years presented, unlessotherwise stated.

Contributions

Employee normal and additional contributions are accounted for when deducted from pay.Employer normal and additional contributions are accounted for in the period to which thecorresponding pay relates. Employer deficit funding contributions are accounted for on the duedates they are payable in accordance with the schedule of contributions and recovery plan underwhich they are being paid, or earlier when paid if agreed by the Trustee and the employer.

Employer contributions in respect of section 75 debts are accounted for when determined by theactuary.

All contributions payable under salary sacrifice arrangements are classified as employercontributions.

Transfers to and from other schemes

Individual transfers in or out are accounted for when received or paid which is normally whenmember liability is accepted or discharged. Group transfers are accounted for in accordance withthe terms of the transfer agreement.

Benefits and payments to and on account of leavers

Pensions payable in respect of the Scheme year are accounted for by reference to the year towhich they relate. Refunds, lump sums, annuity purchases and other benefits are accounted foreither on the later of the date of retirement or the date the member notifies the Trustee of hisdecision on the type or amount of benefit taken or, where members have no choice in relation tothese benefits, by reference to the date of retirement or leaving the Scheme.

Administrative and other expenses

Administrative and investment expenses are paid by the Principal Employer on behalf of theScheme and recovered from the Scheme. Fees and expenses in respect of the year not rechargedto the Scheme by the year end have been accounted for on an accruals basis.

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2. Summary of significant accounting policies (continued)

Investment income and expenditure

Interest income and receipts from annuity policies are accounted for on an accruals basis.

Valuation and classification of investments

Investments are stated at market value at the year end. The Schemes investments comprise itsshare in the SCIF, an insurance policy with Equitable Life and AVC investments with Aviva andEquitable Life. Full details of the accounting policies of the SCIF are included in its Annual Report,which is included as an appendix to this Annual Report.

Investments with Equitable Life and Aviva are valued at the prices provided by the managers atthe valuation date closest to the year end. Where managers provide valuations at a differentanniversary date to the Scheme’s year end, the policy is valued at the nearest date prior to theyear end and adjusted for subsequent amounts invested and withdrawn from the policy.

3. Contributions

2015Money

Final salary purchasesection section Total£000 £000 £000

Employer contributionsNormal 15,985 25,038 41,023Additional 213 8,254 8,467Deficit funding 5,000 — 5,000Transfer of contributions 6,065 (6,065) —

27,263 27,227 54,490

Employee contributionsNormal 50 182 232Additional voluntary contributions — 2,010 2,010

50 2,192 2,242

27,313 29,419 56,732

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3. Contributions (continued)

2014Money

Final salary purchasesection section Total£000 £000 £‘OOO

Employer contributionsNormal 18,724 27,781 46,505Additional 498 7,732 8,230Deficit funding 5,000 — 5,000Transfer of contributions 7,027 (7,027) —

31,249 28,486 59,735

Employee contributionsNormal 20 174 194Additional voluntary contributions — 2,376 2,376

20 2,550 2,570

31,269 31,036 62,305

Employer additional contributions represent the contribution to reimburse the PPF levy (FinalSalary) and the annual profit sharing contribution (Money Purchase). Deficit funding contributionsof £5m per annum are being paid by the employer into the Scheme for a period of five years from31 December 2013 to 31 December 2018 in accordance with a recovery plan in order to improvethe Scheme’s funding position.

Transfer of contributions relate to the administration and insurance element of the money purchasecontributions which are recharged to the final salary section, where the corresponding costs areborne.

Employer normal contributions include contributions in respect of members participating in thesalary sacrifice arrangement.

4. Transfers in

2015Money


Individual transfers in from other schemes 281 281

2014Money


Individual transfers in from other schemes 1,628 1,628

- 23 -




5. Other income

2015Money


Claims on term insurance policies 179 179Age related rebatesOther income 5 10 15

184 10 194

2014Money


Claims on term insurance policiesAge related rebates 6 1 7Other income 4 4

6 5 11

Age related rebates ceased with effect from 6 April 2012. Amounts in the year ended 31 December2014 represent adjustments to amounts previously received.

6. Benefits paid or payable

2015Money


Pensions 16,335 — 16,335Commutations and retirement lump sums 3,436 6,813 10,249Purchase of annuities (517) 2,961 2,444Lump sum death benefits 1,133 1,060 2,193Taxation where lifetime or annual allowanceexceeded 489 — 489

20,876 10,834 31,710

Annuity purchases in the prior year were accrued in the final salary section but were payable fromthe money purchase section. This has resulted in the final salary section purchase of annuitiesbeing negative in the current year.

- 24 -




6. Benefits paid or payable (continued)

2014Money


Pensions 14,704 — 14,704Commutations and retirement lump sums 1,087 5,817 6,904Purchase of annuities 1,352 3,584 4,936Lump sum death benefits 1,054 1,073 2,127Taxation where lifetime or annual allowanceexceeded 525 56 581

18,722 10,530 29,252

7. Transfers out

2015Money


Individual transfers out to other schemes 11,495 17,763 29,256

2014Money


Individual transfers out to other schemes 5,686 7,220 12,906

- 25 -




8. Administrative expenses

2015Money


Administration fees 1,390 1,390Legal fees 37Pension Protection Fund levies 213 213Actuarial fees 512 512Audit fee 44 — 44Other fees 144 2 146

2,340 2 2,342

2014Money


Administration fees 1,463 — 1,463Legal fees 68 — 68Pension Protection Fund levies 498 498Actuarial fees 531 531Audit fee 46 — 46Other fees 48 1 49

2,654 1 2,655

9. Investment income

2015Money


Annuity income 37 — 37Interest on cash deposits 3 5 8

40 5 45

2014Money


Annuity income 39 — 39Interest on cash deposits 1 2 3

40 2 42

- 26 -




10. Reconciliation of investments

Final salary sectionChange in

Value at Purchases Sales market Value at01101115 at cost proceeds value 31112115£000 £000 £000 £000 £‘OOO

Pooled investmentvehicles 1,068,801 6,562 (17,279) 29,979 1,088,063

Money purchase sectionChange in

Value at Purchases Sales market Value at01I01I15 at cost proceeds value 3111 2115

£000 £000 £000 £000 £‘OOOPooled investmentvehicles 646,970 69,542 (72,744) 14,079 657,847Other investments 79 (37) 6 48AVC investments 4,281 30 (435) 137 4,013

651,330 69,572 (73,216) 14,222 661,908

Transaction costs are included in the cost of purchases and deducted from sale proceeds. Directtransaction costs include costs charged to the SCIF such as fees, commissions and stamp duty.

In addition to the transaction costs disclosed above, indirect costs are incurred through the bid-offer spread on investments within pooled investment vehicles and charges made within thosevehicles.

Money purchase investments

Money purchase assets are allocated to provide benefits to the individuals on whose behalf thecontributions were paid and assets identified as designated to members do not form a commonpool of assets available for members generally. Members of the money purchase section receivean annual statement confirming the contributions paid on their behalf and the value of their moneypurchase rights.

Included within the money purchase section common investment fund investments areinvestments not allocated to members which amounted to £5,789,933 (2014: £5,701,256).

11. Investment management expenses

2015Money

Final salary purchasesection section Total£000 £‘OOO £‘OOO

Administration, management and custody 4,396 4,396

2014Money


Administration, management and custody 4,967 4,967

- 27 -




12. Taxation

The Scheme is a registered Pension Scheme under Chapter 2 of Part 4 of the Finance Act 2004and is therefore exempt from income tax and capital gains tax.

13. Transfers between sections

2015Money


Transfers between sections 2,368 (2,368)

2014Money


Transfers between sections 2,536 (2,536)

Income and investment assets attributable to the final salary section are separately invested andsegregated from investments attributable to members’ money purchase benefits.

During the year the Trustee, with actuarial approval, authorised the transfer of amounts from themoney purchase section into the final salary section. These amounts are for retiring moneypurchase members whose funds are transferred to the final salary section in order to purchase anannuity from the final salary section.

14. Pooled investment vehicles

The SCIF is considered a pooled investment vehicle for the purposes of classification in theScheme’s financial statements. The underlying investments in the SCIF are structured into anumber of unitised pools, containing both segregated and pooled investments, in which the finalsalary and money purchase sections can purchase units. The remainder of the SOlE is made upof investments in which only the final salary section can invest and is not unitised.

- 28 -




14. Pooled investment vehicles (continued)

2015Money


Final salary and money purchase £000 £000 £‘OOOUK equity — active 195,595 107,984 303,579UK equity - passive — 72,107 72,107Global equity 253,860 280,452 534,312Core bond — 80,003 80,003UK index linked gilt — 77,596 77,596Cash — 39,705 39,705

449,455 657,847 1,107,302Final salary onlyDistressed debt 45,671 — 45,671Hedgefundoffunds 721 — 721DB Index linked guts 244,342 — 244,342DB Corporate bonds 166,179 — 166,179Property 24,196 — 24,196Private equity 82,461 — 82,461Commercial real estate debt 47,409 — 47,409Directlending 21,767 — 21,767Cash 5,862 — 5,862

638,608 — 638,608

1,088,063 657,847 1,745,910

2014Money


Final salary and money purchase £000 £000 £‘OOOUK equity — active 193,752 103,400 297,152UK equity - passive — 83,291 83,291Global equity 296,571 275,741 572,312Core bond — 70,166 70,166UK index linked gilt — 79,488 79,488Cash — 34,884 34,884

490,323 646,970 1,137,293Final salary onlyDistressed debt 28,860 — 28,860Hedgefundoffunds 4,434 — 4,434DB Index linked gilts 248,696 — 248,696DB Corporate bonds 167,678 — 167,678Property 24,057 — 24,057Private equity 73,902 — 73,902Commercial real estate debt 15,544 — 15,544Direct lending 7,679 — 7,679Cash 7,628 — 7,628

578,478 — 578,478

1,068,801 646,970 1,715,771

- 29 -




15. AVC investments

2015Money


Aviva Life Services UK Limited — 2,636 2,636The Equitable Life Assurance Society With-profitsfund* 480 480The Equitable Life Assurance Society :- Unit-linkedfunds*

— 897 897

— 4,013 4,013

2014Money


Aviva Life Services UK Limited — 2,741 2,741The Equitable Life Assurance Society :- With-profitsfund* 499 499The Equitable Life Assurance Society :- Unit-linkedfunds*

— 1,041 1,041

— 4,281 4,281

The Trustee holds assets invested separately from the main fund in the form of insurance policies,which secure additional benefits on a money purchase basis for those members electing to payadditional voluntary contributions. Members participating in this arrangement, which is closed tonew members, each receive an annual statement confirming the amounts held on their behalf andthe movements in the year. The aggregate amounts of AVC investments are shown above.

* Equitable Life have been unable to provide year end balances. The asset values stated abovehave therefore been valued at the asset values supplied to the anniversary dates of the threepolicies held with Equitable Life (5 April 2014, 29 April 2014 and 30 June 2014) and adjusted forsubsequent purchases and sales to the Scheme year end.

- 30 -




16. Fair value determination

The fair value of financial instruments has been categorised using the following fair value hierarchy:

• Level 1: The unadjusted quoted price in an active market for identical assets or liabilities thatthe entity can access at the measurement date.

• Level 2: Inputs other than quoted prices included within Level 1 that are observable (i.e.developed using market data) for the asset or liability, either directly or indirectly.

• Level 3: Inputs are unobservable (i.e. for which market data is unavailable) for the asset orliability.

The Scheme’s investment assets and liabilities have been fair valued using the above hierarchycategories as follows:

At31 December2015Level 2 Level 3 Total£000 £000 £000

Final salary sectionPooled investment vehicles 865,898 222,165 1,088,063

Money purchase sectionPooled investment vehicles 657847 — 657,847Other investments — 48 48AVC investments 3533 480 4,013

661,380 528 661,908

1,527,278 222,153 1,749,971

At31 December2014Level 2 Level 3 Total£000 £‘OOO £‘OOO

Final salary sectionPooled investment vehicles 918,044 150,757 1,068,801

Money purchase sectionPooled investment vehicles 646970 — 646,970Other investments — 79 79AVC investments 3,782 499 4,281

650,752 578 651,330

1,568,796 151,335 1,720,131

There were no Level 1 investments at either 31 December 2015 or 2014.

- 31 -




17. Investment risk disclosures

Investment risksFRS 102 requires the disclosure of information in relation to certain investment risks. These risksare set out by FRS 102 as follows:

Credit risk: this is the risk that one party to a financial instrument will cause a financial loss for theother party by failing to discharge an obligation.

Market risk: this comprises currency risk, interest rate risk and other price risk.

• Currency risk: this is the risk that the fair value or future cash flows of a financial asset willfluctuate because of changes in foreign exchange rates.

• Interest rate risk: this is the risk that the fair value or future cash flows of a financial assetwill fluctuate because of changes in market interest rates.

• Other price risk: this is the risk that the fair value or future cash flows of a financial asset willfluctuate because of changes in market prices (other than those arising from interest rate

risk or currency risk), whether those changes are caused by factors specific to the individualfinancial instrument or its issuer, or factors affecting all similar financial instruments traded inthe market.

The Scheme has exposure to these risks because of the investments it makes to implement its• . . ,

investment strategy described in the Trustee s Report and below. The Trustee managesinvestment risks, including credit risk and market risk, within agreed risk limits which are set takinginto account the Scheme’s strategic investment objectives. These investment objectives and risklimits are implemented through the investment management agreements in place with the SCIF’sinvestment managers and monitored by the SCIF’s Trustee by regular reviews of the investmentportfolios.

Investment in SCIF

The Trustee has agreed to participate in the SOlE, a fund set up to manage the investments ofpension schemes within the Schlumberger UK Group. The Trustee reserves the right to stopparticipating in the SOlE at any time. It is the Trustee’s policy to monitor the SCIF to ensure that itcontinues to be invested in suitable assets and is in line with the Statement of InvestmentPrinciples.

The SOlE’s Trustee is responsible for the selection of investment managers and their investmentobjectives and restrictions.

The Scheme is comprised of two sections — a money purchase section and a hybrid section whichcomprises a final salary section and a money purchase section. Each section has its owninvestment strategy and objectives as detailed in the Statement of Investment Principles and inSCIF’s annual report which is included as an appendix to this annual report.

The underlying assets of the SCIF are structured into a number of pooled investment fundscovering several different asset classes and segregated accounts. The two sections of the Schemehold units in these pools as detailed in note 14.

- 32 -




17. Investment risk disclosures (continued)

Credit risk

The Scheme is subject to direct credit risk in that it invests in the SCIF which is considered a pooledinvestment vehicle for the purposes of the Scheme’s financial statements. To mitigate this risk theTrustee regularly reviews both the performance and the internal controls of the SCIF.

The Scheme’s investments in SOlE are via pooled arrangements (which are credit unrated) as setout in note 14 and so is indirectly exposed to credit risks arising on some of the financialinstruments held by those pools that invests in bonds, distressed debt, commercial real estate debtand direct lending. Total of these pools are £525.4m (2014: £468.5m) for the final salary sectionand £157.6m (2014: £149.7m) for the money purchase section.

Currency risk

The Scheme’s investment in the SCIF is in sterling therefore there is no direct currency exposure.Further details of indirect currency risks in the pools can be found in SCIF’s financial statementsappended to this annual report.

Interest rate risk

There is no significant direct interest rate risk for the Scheme. The Scheme is subject to indirectinterest rate risk because some of the Scheme’s investments are held in pools that invest in guts,bonds, distressed debt, commercial real estate debt and direct lending, interest rate swaps andcash. See note 14 for details of these pools and amounts involved.

Other price risk

There is no significant price risk for the Scheme. Indirect other price risk arises principally in relationto the Scheme’s return seeking portfolio which includes pools that invest in equities, hedge funds,private equity and investment properties — see note 14 for amounts subject to this risk.

Indirect risks

Further information on the Trustee’s approach to risk management in respect of exposure toindirect risks is set out in the SCIF’s financial statements which form an appendix to this annualreport. This does not include the legacy insurance policies nor AVC investments as these are notconsidered significant in relation to the overall investments of the Scheme.

18. Concentration of investments

The following investments amounted to more than 5% of the total net assets of the Scheme: Theinvestment in SCIF represents 99.3% of the Scheme’s net assets. For the concentration of assetswithin SCIF, please refer to the SCIF annual report and financial statements which are appendedto these financial statements.

19. Employer related investments

There were no direct employer related investments at the year end (2014: Nil). Details of employerrelated investments within pooled investment vehicles are given on page 24 of the SCIF financialstatements, which are attached as an appendix to these financial statements.

- 33 -




20. Current assets2015


section section Total£000 £000 £‘OOO

Other debtors and prepayments 1,270 56 1,326Amounts due between sections — 213 213Cash balances 2,228 6,011 8,239

3,498 6,280 9,778

2014Money


Other debtors and prepayments 1,128 20 1,148Amounts due between sections 905 — 905Cash balances 826 4,512 5,338

2,859 4,532 7,391

All Money purchase section current assets were allocated to members in the current and prioryear.

- 34 -




21. Current liabilities

2015Money Money

purchase purchasesection section not

Final salary allocated to allocated tosection members members Total£000 £000 £000 £000

Unpaid benefits 340 537 877Accrued expenses 1,689 — 1,689Cash balances — — 36 36Other creditors 426 11 — 437Amounts due between sections 213 — 213

2,668 548 36 3,252

2014Money Money

purchase purchasesection section not

Final salary allocated to allocated tosection members members Total£‘OOO £000 £000 £‘OOO

Unpaid benefits 1,683 264 — 1,947Accrued expenses 1,363 — 1,363Cash balances — 6 6Other creditors 498 — 53 551Amounts due between sections — 905 — 905

3,544 1,169 59 4,772

22. Related party transactions

The Scheme has received contributions in respect of G Gordon, R McGill, D McGlue, R Rahim, SSmoker, G Smyth, P Taylor, H Davies, A Pitt and S White who are Trustee Directors andcontributing members of the Scheme. The Scheme has also paid benefits to K Brims and L Nicoliwho are Trustee Directors and pensioners of the Scheme.

Administration and investment fees and expenses are paid by the Principal Employer andrecovered from the Scheme.

Included within the administration fees are amounts of £38,694 (2014: £27,484) relating to Trusteefees and expenses.

Other than those items disclosed elsewhere in the financial statements there were no other relatedparty transactions.

23. Contingent liabilities and contractual commitments

In the opinion of the Trustee the Scheme had no contingent liabilities and no contractualcommitments as at the year end (2014: Nil).

- 35 -

scheme registration number: 10170256 for the year … · 2016. 9. 12. · schlumberger uk pension...

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