BP 2013 Annual Report Download - page 235

6. Pensions – continued
$ million
2013 2012
Analysis of the amount charged to operating profit
Current service costa497 477
Settlement, curtailment and special termination benefits (22) (1)
Payments to defined contribution plans 24 14
Total operating chargec499 490
Analysis of the amount credited (charged) to other finance income
Expected return on pension plan assets 1,803 1,680
Interest on pension plan liabilities (1,221) (1,249)
Other finance income 582 431
Analysis of the amount recognized in the statement of total recognized gains and losses
Actual return less expected return on pension plan assets 2,007 989
Change in assumptions underlying the present value of the plan liabilities 60 (1,446)
Experience gains and losses arising on the plan liabilities 41 (116)
Actuarial gain (loss) recognized in statement of total recognized gains and losses 2,108 (573)
$ million
2013 2012
Movements in benefit obligation during the year
Benefit obligation at 1 January 29,259 25,675
Exchange adjustment 705 1,313
Current service costa497 477
Interest cost 1,221 1,249
Curtailments (24) (8)
Disposals (9) (10)
Special termination benefitsb27
Contributions by plan participantse37 39
Benefit payments (funded plans)c(1,087) (1,038)
Benefit payments (unfunded plans)c(4) (7)
Actuarial (gain) loss on obligation (101) 1,562
Benefit obligation at 31 December 30,496 29,259
Movements in fair value of plan assets during the year
Fair value of plan assets at 1 January 27,346 23,587
Exchange adjustment 822 1,215
Expected return on plan assetsad 1,803 1,680
Contributions by plan participantse37 39
Contributions by employers (funded plans) 597 884
Disposals (9) (10)
Benefit payments (funded plans)c(1,087) (1,038)
Actuarial gain on plan assetsd2,007 989
Fair value of plan assets at 31 Decemberf31,516 27,346
Surplus (deficit) at 31 December 1,020 (1,913)
aThe costs of managing the fund’s investments are treated as being part of the investment return, the costs of administering our pensions plan benefits are included in current service cost.
bThe charge for special termination benefits represents the increased liability arising as a result of early retirements occurring as part of restructuring programmes.
cThe benefit payments amount shown above comprises $1,073 million benefits plus $18 million of plan expenses incurred in the administration of the benefit.
dThe actual return on plan assets is made up of the sum of the expected return on plan assets and the actuarial gain on plan assets as disclosed above.
eThe contributions by plan participants are mostly comprised of contributions made under salary sacrifice arrangements.
fReflects $31,362 million of assets held in the BP Pension Fund (2012 $27,219 million) and $114 million held in the BP Global Pension Trust (2012 $94 million), with $40 million representing the
company’s share of Merchant Navy Officers Pension Fund (2012 $32 million).
The parent company financial statements of BP p.l.c. on pages 224-234 do not form part of BP’s Annual Report on Form 20-F as filed with the SEC.
Financial statements
BP Annual Report and Form 20-F 2013 231