Strategic Shareholder Climate and Risk Financial Financial Barclays PLC 495 report information sustainability report Governance review review statements Annual Report 2022 Notes to the financial statements (continued) Employee benefits tables include funded and unfunded post-retirement benefits. The income statement charge with respect to Defined contribution schemes is disclosed as part of footnotes to Note 31 Staff costs. Income statement (credit)/charge 2022 2021 2020 £m £m £m Current service cost 227 247 243 Net finance (income)/cost (122) (26) (40) Past service cost 20 — (4) Other movements 3 3 1 Total 128 224 200 Balance sheet reconciliation 2022 2021 Of which relates to Of which relates to Total UKRF Total UKRF £m £m £m £m Benefit obligation at beginning of the year (31,899) (30,859) (33,190) (32,108) Current service cost (227) (197) (247) (225) Interest costs on scheme liabilities (724) (707) (422) (405) Past service cost (20) (20) — — Remeasurement (loss)/gain – financial 10,995 10,734 848 820 Remeasurement (loss)/gain – demographic 268 270 53 50 Remeasurement (loss)/gain – experience (521) (510) (249) (259) Employee contributions (4) — (4) — Benefits paid 1,339 1,299 1,309 1,268 Exchange and other movements (88) — 3 — Benefit obligation at end of the year (20,881) (19,990) (31,899) (30,859) Fair value of scheme assets at beginning of the year 35,467 34,678 34,713 33,915 Interest income on scheme assets 846 829 448 434 Employer contribution 1,808 1,785 971 955 Remeasurement – return on scheme assets (less)/greater than discount rate (11,510) (11,313) 653 642 Employee contributions 4 — 4 — Benefits paid (1,339) (1,299) (1,309) (1,268) Exchange and other movements 84 — (13) — Fair value of scheme assets at end of the year 25,360 24,680 35,467 34,678 Net surplus 4,479 4,690 3,568 3,819 Retirement benefit assets 4,743 4,690 3,879 3,819 Retirement benefit liabilities (264) — (311) — Net retirement benefit assets 4,479 4,690 3,568 3,819 Included within the benefit obligation is £690m (2021: £821m) relating to overseas pensions and £201m (2021: £219m) relating to other post-employment benefits. As at 31 December 2022, the UKRF’s scheme assets were in surplus versus IAS 19 obligations by £4,690m (2021: £3,819m). The increase in the UKRF surplus during the year was driven by £294m of deficit reduction contributions and the unwind of the Senior Notes (see later in note), partially offset by higher than expected inflation experienced during the year. The UKRF assets and benefit obligation have reduced by c£10bn and c£11bn respectively over the year, primarily due to higher gilt and bond yields. This is as expected from the investment strategy which aims to invest in assets that move in value in line with changes in liability values. The weighted average duration of the benefit payments reflected in the defined benefit obligation for the UKRF is 13 years (2021: 16 years) . The decrease in duration is primarily due to the increase in discount rate, driven by higher corporate bond yields. The UKRF expected benefits are projected to be paid out for in excess of 50 years, although 30% of the total benefits are expected to be paid in the next 10 years; 30% in years 11 to 20 and 25% in years 21 to 30. The remainder of the benefits are expected to be paid beyond 30 years. Of the £1,299m (2021: £1,268m) UKRF benefits paid out, £390m (2021: £419m) related to transfers out of the fund. Where a scheme’s assets exceed its obligation, an asset is recognised to the extent that it does not exceed the present value of future contribution holidays or refunds of contributions (the asset ceiling). In the case of the UKRF the asset ceiling is not applied as, in certain specified circumstances such as wind-up, the Group expects to be able to recover any surplus. Similarly, a liability in respect of future minimum funding requirements is not recognised. The Trustee does not have a substantive right to augment benefits, nor do they have the right to wind up the plan except in the dissolution of the Group or termination of contributions by the Group. The application of the