BP 2007 Annual Report Download - page 158

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38 Pensions and other post-retirement benefits continued
$ million
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2005
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US
UK US other post-
pension pension retirement
Analysis of the amount charged to profit before interest and taxation plans plans benefit plans Other plans Total
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Current service costa379 216 50 140 785
Past service cost 5 (10) (5) 51 41
Settlement, curtailment and special termination benefits 37 – – 10 47
Payments to defined contribution plans – 158 – 14 172
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Total operating charge 421 364 45 215 1,045
Innovene operations (38) (24) (3) (21) (86)
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Continuing operationsb383 340 42 194 959
Analysis of the amount credited (charged) to other finance expense
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Expected return on plan assets 1,456 557 2 123 2,138
Interest on plan liabilities (1,003) (444) (207) (368) (2,022)
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Other finance income (expense) 453 113 (205) (245) 116
Innovene operations (10) (5) 2 10 (3)
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Continuing operations 443 108 (203) (235) 113
Analysis of the amount recognized in the statement of recognized income
and expense
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Actual return less expected return on pension plan assets 3,111 96 – 157 3,364
Change in assumptions underlying the present value of the plan liabilities (1,884) (59) 236 (470) (2,177)
Experience gains and losses arising on the plan liabilities (14) (197) (17) 16 (212)
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Actuarial gain (loss) recognized in statement of recognized income and expense 1,213 (160) 219 (297) 975
aThe costs of managing the fund’s investments are treated as being part of the investment return, the costs of administering our pensions fund benefits are generally
included in current service cost, and the costs of administering our other post-retirement benefits are included in the benefit obligation.
bIncluded within production and manufacturing expenses and distribution and administration expenses.
$ million
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History of surplus (deficit) and of experience gains and losses 2007 2006 2005 2004 2003
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Benefit obligation at 31 December 43,100 42,433 38,855 39,945 35,995
Fair value of plan assets at 31 December 42,799 39,910 32,907 31,712 27,853
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Surplus (deficit) (301) (2,523) (5,948) (8,233) (8,142)
Experience gains and losses on plan liabilities (200) (124) (212) (468) 873
Actual return less expected return on pension plan assets 302 1,967 3,364 1,349 2,392
Actual return on plan assets 3,157 4,377 5,502 3,332 3,892
Actuarial gain recognized in statement of recognized income and expense 1,717 2,615 975 107 76
Cumulative amount recognized in statement of recognized income and expense 5,490 3,773 1,158 183 76
Estimated future benefit payments
The expected benefit payments, which reflect expected future service, as appropriate, but exclude fund expenses, up until 2017 are as follows:
$ million
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US
UK US other post-
pension pension retirement
plans plans benefit plans Other plans Total
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2008 1,112 629 224 534 2,499
2009 1,183 656 227 533 2,599
2010 1,252 670 235 529 2,686
2011 1,334 681 240 521 2,776
2012 1,378 716 242 516 2,852
2013-2017 7,650 3,301 1,243 2,551 14,745