HSBC 2008 Annual Report Download - page 371

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The mortality tables and average life expectancy at 65 used at 31 December 2007 were as follows:
Mortality table
Life expectancy at
age 65 for a male
member currently:
Life expectancy at
age 65 for a female
member currently:
Aged 65 Aged 45 Aged 65 Aged 45
UK .......................................................................... PA921 20.4 21.7 23.4 24.6
Hong Kong ............................................................. n/a n/a n/a n/a n/a
US .......................................................................... RP 2000 fully
generational 19.1 20.6 21.1 22.0
Jersey ...................................................................... PA922 21.9 23.0 24.8 25.8
Mexico ................................................................... EMSSA-97 16.5 16.5 19.9 19.9
Brazil ...................................................................... RP 2000 fully
generational 19.1 20.6 21.1 22.0
France ..................................................................... TG 05 22.9 25.7 26.4 29.3
Canada pension plans ............................................ Between UP94 C2015
and UP94 C2027
19.0
and 20.0
19.0
and 20.0
21.6
and 22.1
21.6
and 22.1
Canada healthcare plan .......................................... UP94 C2025 19.8 19.8 22.0 22.0
Switzerland ............................................................ BVG 2005 (3% load) 17.9 17.9 21.0 21.0
Germany ................................................................. Heubeck 2005 G 18.1 20.8 22.2 24.9
1 PA92 with standard improvements to 2005 and medium cohort improvements thereafter.
2 PA92 year of birth with medium cohort improvements.
Actuarial assumption sensitivities
The discount rate is sensitive to changes in market conditions arising during the reporting period. The mortality rates
used are sensitive to experience from the plan member profile. The following table shows the effect of changes in
these and the other key assumptions on the principal plan:
HSBC Bank (UK) Pension Scheme
2008 2007
US$m US$m
Discount rate
Change in pension obligation at year end from a 25bps increase ..................................................... (559) (989)
Change in pension obligation at year end from a 25bps decrease .................................................... 595 1,063
Change in 2009 pension cost from a 25bps increase ........................................................................ (9) (20)
Change in 2009 pension cost from a 25bps decrease ........................................................................ 10 20
Rate of inflation
Change in pension obligation at year end from a 25bps increase ..................................................... 525 1,063
Change in pension obligation at year end from a 25bps decrease .................................................... (493) (989)
Change in 2009 pension cost from a 25bps increase ........................................................................ 45 82
Change in 2009 pension cost from a 25bps decrease ........................................................................ (41) (76)
Rate of increase for pensions in payment and deferred pensions
Change in pension obligation at year end from a 25bps increase ..................................................... 349 823
Change in pension obligation at year end from a 25bps decrease .................................................... (328) (758)
Change in 2009 pension cost from a 25bps increase ........................................................................ 29 60
Change in 2009 pension cost from a 25bps decrease ........................................................................ (23) (56)
Rate of pay increase
Change in pension obligation at year end from a 25bps increase ..................................................... 172 240
Change in pension obligation at year end from a 25bps decrease .................................................... (168) (231)
Change in 2009 pension cost from a 25bps increase ........................................................................ 16 22
Change in 2009 pension cost from a 25bps decrease ........................................................................ (15) (20)
Investment return
Change in 2009 pension cost from a 25bps increase ........................................................................ 36 56
Change in 2009 pension cost from a 25bps decrease ........................................................................ (36) (56)
Mortality
Change in pension obligation from each additional year of longevity assumed .............................. 365 683