HSBC 2008 Annual Report Download - page 374

HSBC HOLDINGS PLC
Notes on the Financial Statements (continued)
Note 8
372
Summary
HSBC Bank (UK) Pension Scheme
2008 2007 2006 2005 2004
US$m US$m US$m US$m US$m
Defined benefit obligation ..................................... (15,257) (23,512) (24,332) (20,587) (19,998)
Fair value of plan assets ........................................ 14,865 22,704 20,587 17,396 15,105
Net deficit .............................................................. (392) (808) (3,745) (3,191) (4,883)
Experience gains/(losses) on plan liabilities ......... (49) (64) 540 70 401
Experience gains/(losses) on plan assets ............... (2,861) 29 – 1,623 506
Gains/(losses) from changes in actuarial assumptions
............................................................................ 3,081 2,459 (570) (2,038) (1,357)
Total net actuarial gains/(losses) ........................... 171 2,424 (30) (345) (450)
Other plans
2008 2007 2006 2005 2004
US$m US$m US$m US$m US$m
Defined benefit obligation ..................................... (8,787) (8,873) (7,916) (7,102) (6,501)
Fair value of plan assets ........................................ 6,024 7,768 7,116 6,356 5,823
Net deficit .............................................................. (2,763) (1,105) (800) (746) (678)
Experience losses on plan liabilities ...................... (52) (354) (167) (113) (42)
Experience gains on plan assets ............................ (1,452) 157 203 78 3
Losses from changes in actuarial assumptions ...... (306) (121) (44) (393) (243)
Total net actuarial gains/(losses) ........................... (1,810) (318) (8) (428) (282)
Actuarial gains and losses represent experience adjustments on plan assets and liabilities as well as adjustments
arising from changes in actuarial assumptions. Total cumulative actuarial losses recognised in equity at 31 December
2008 were US$1,076 million (2007: gains of US$563 million).
The total effect of the limit on plan surpluses recognised within actuarial losses in equity during 2008 was a
US$41 million gain excluding exchange differences of US$5 million (2007: US$42 million loss excluding exchange
differences of US$4 million).
Defined benefit healthcare plans
2008 2007
Expected
rates of
return1 Value
Expected
rates of
return1 Value
% US$m
% US$m
Fair value of plan assets ............................................... 128 146
Equities ..................................................................... 11.6 39 13.0 44
Bonds ........................................................................ 8.0 89 7.9 102
Defined benefit obligation ............................................ (839) (1,038)
Present value of funded obligations ......................... (172) (191)
Present value of unfunded obligations ..................... (667) (847)
Unrecognised past service cost ..................................... (23) (33)
Net liability ................................................................... (734) (925)
1 The expected rates of return are weighted on the basis of the fair value of the plan assets.