BP 2013 Annual Report Download - page 187

30. Pensions and other post-retirement benefits – continued
$ million
2012
UK
pension
plans
US pension
plans
US other
post-
retirement
benefit
plans
Other
plans Total
Analysis of the amount charged to profit before interest and taxation
Current service costa477 328 51 151 1,007
Past service costb(1) 20 – 82 101
Settlement –––11
Operating charge relating to defined benefit plans 476 348 51 234 1,109
Payments to defined contribution plans 14 223 – 44 281
Total operating charge 490 571 51 278 1,390
Interest income on plan assets (1,146) (304) – (154) (1,604)
Interest on plan liabilities 1,249 382 134 405 2,170
Other finance expense 103 78 134 251 566
Analysis of the amount recognized in other comprehensive income
Actual asset return less interest income on plan assetsa1,523 718 – 173 2,414
Change in financial assumptions underlying the present value of the plan liabilities (1,446) (1,427) 187 (1,093) (3,779)
Change in demographic assumptions underlying the present value of the plan liabilities – – 52 (37) 15
Experience gains and losses arising on the plan liabilities (116) 68 (48) (126) (222)
Remeasurements recognized in other comprehensive income (39) (641) 191 (1,083) (1,572)
Movements in benefit obligation during the year
Benefit obligation at 1 January 25,675 8,617 3,061 8,801 46,154
Exchange adjustments 1,313 – – 254 1,567
Operating charge relating to defined benefit plans 476 348 51 234 1,109
Interest cost 1,249 382 134 405 2,170
Contributions by plan participantsc39 – – 14 53
Benefit payments (funded plans)d(1,038) (593) (3) (230) (1,864)
Benefit payments (unfunded plans)d(7) (84) (207) (394) (692)
Disposals (10) – – (192) (202)
Remeasurements 1,562 1,359 (191) 1,256 3,986
Benefit obligation at 31 Decemberae 29,259 10,029 2,845 10,148 52,281
Movements in fair value of plan assets during the year
Fair value of plan assets at 1 January 23,587 7,204 4 3,286 34,081
Exchange adjustments 1,215 – – 88 1,303
Interest income on plan assetsa1,146 304 – 154 1,604
Contributions by plan participantsc39 – – 14 53
Contributions by employers (funded plans) 884 153 – 238 1,275
Benefit payments (funded plans)d(1,038) (593) (3) (230) (1,864)
Disposals (10) – – (190) (200)
Remeasurementsf1,523 718 – 173 2,414
Fair value of plan assets at 31 December 27,346 7,786 1 3,533 38,666
Deficit at 31 December (1,913) (2,243) (2,844) (6,615) (13,615)
Represented by
Asset recognized – – – 12 12
Liability recognized (1,913) (2,243) (2,844) (6,627) (13,627)
(1,913) (2,243) (2,844) (6,615) (13,615)
The surplus (deficit) may be analysed between funded and unfunded plans as follows
Funded (1,688) (1,599) (43) (539) (3,869)
Unfunded (225) (644) (2,801) (6,076) (9,746)
(1,913) (2,243) (2,844) (6,615) (13,615)
The defined benefit obligation may be analysed between funded and unfunded
plans as follows
Funded (29,034) (9,385) (44) (4,072) (42,535)
Unfunded (225) (644) (2,801) (6,076) (9,746)
(29,259) (10,029) (2,845) (10,148) (52,281)
aThe costs of managing the plan’s investments are treated as being part of the return on plan assets, the costs of administering our pension plan benefits are generally included in current service cost
and the costs of administering our other post-retirement benefit plans are included in the benefit obligation.
bPast service costs are charges for special termination benefits representing the increased liability arising as a result of early retirements occurring as part of restructuring programmes.
cMost of the contributions made by plan participants into UK pension plans were made under salary sacrifice.
dThe benefit payments amount shown above comprises $2,501 million benefits plus $55 million of plan expenses incurred in the administration of the benefit.
eThe benefit obligation for other plans includes $4,783 million for the German plan, which is largely unfunded.
fThe actual return on plan assets is made up of the sum of the interest income on plan assets and the remeasurement of plan assets as disclosed above.
Financial statements
BP Annual Report and Form 20-F 2013 183