BP 2006 Annual Report Download - page 215

BP Annual Report and Accounts 2006 213
6 Pensions continued
$ million
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2006 2005 2004
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Analysis of the amount charged to operating profit
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Current service cost 411 360 341
Past service cost (74) 45
Settlement, curtailment and special termination benefits –36 36
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Total operating charge 337 400 382
Analysis of the amount credited (charged) to other finance income
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Expected return on pension plan assets 1,593 1,357 1,257
Interest on pension plan liabilities (918) (914) (899)
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Other finance income 675 443 358
Analysis of the amount recognized in the statement of total recognized gains and losses
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Actual return less expected return on pension plan assets 1,252 2,946 750
Change in assumptions underlying the present value of the plan liabilities 79 (1,721) (710)
Experience gains and losses arising on the plan liabilities (211) (66) 157
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Actuarial gain (loss) recognized in statement of total recognized gains and losses 1,120 1,159 197
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Movements in benefit obligation during the year 2006 2005
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Benefit obligation at 1 January 18,316 18,613
Exchange adjustment 2,524 (2,008)
Current service cost 411 360
Past service cost (74) 4
Interest cost 918 914
Curtailment (20) –
Settlement (22) –
Special termination benefits 42 36
Contributions by plan participants 37 35
Benefit payments (funded plans) (900) (847)
Disposals 143 (578)
Actuarial (gain) loss on obligation 132 1,787
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Benefit obligation at 31 December 21,507 18,316
Movements in fair value of plan assets during the year
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Fair value of plan assets at 1 January 21,542 20,706
Exchange adjustment 3,082 (2,291)
Expected return on plan assets 1,593 1,357
Contributions by plan participants 37 35
Contributions by employers (funded plans) 420 214
Benefit payments (funded plans) (900) (847)
Disposals 143 (578)
Actuarial gain (loss) on plan assets 1,252 2,946
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Fair value of plan assets at 31 December 27,169 21,542
Surplus (deficit) at 31 December 5,662 3,226
Represented by
Asset recognized 5,771 3,226
Liability recognized (109) –
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5,662 3,226
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The surplus (deficit) may be analysed between funded and unfunded plans as follows
Funded 5,771 3,226
Unfunded (109) –
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5,662 3,226
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The defined benefit obligation may be analysed between funded and unfunded plans as follows
Funded 21,616 18,316
Unfunded (109) –
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21,507 18,316
The aggregate level of employer contributions in 2007 is expected to be approximately $500 million.