HSBC 2009 Annual Report Download - page 399

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The special contributions of US$418 million include an additional contribution of US$240 million to the HSBC
North America (US) Retirement Income Plan. Special contributions also include US$160 million in respect of the
HSBC International Staff Retirement Benefits Scheme which was made to fund the deficit shown in the actuarial
valuation report as at 31 December 2008. US$91 million of the contribution to the HSBC International Staff
Retirement Benefits Scheme was made in the form of cash and US$69 million was contributed in the form of asset-
backed securities previously held within the Group.
The actual return on plan assets for the year ended 31 December 2009 was a positive return of US$2,276 million
(2008: negative US$2,405 million). HSBC expects to make US$520 million of contributions to defined benefit
pension plans during 2010. Benefits expected to be paid from the plans to retirees over each of the next five years,
and in aggregate for the five years thereafter, are:
2010 2011 2012 2013 2014 2015-2019
US$m US$m US$m US$m US$m US$m
HSBC Bank (UK) Pension
Scheme .................................... 683 725 756 801 847 5,359
Other significant plans ................ 453 512 534 560 592 3,561
Total (income)/expense recognised in the income statement in ‘Employee compensation and benefits’
HSBC Bank (UK) Pension Scheme Other plans
2009 2008 2007 2009 2008 2007
US$m US$m US$m US$m US$m US$m
Current service cost .................... 260 387 454 334 357 347
Interest cost ................................. 1,019 1,227 1,247 397 466 398
Expected return on plan assets ... (959) (1,359) (1,211) (381) (549) (486)
Past service cost .......................... – – – 21 9 7
Gains on curtailments ................. – – – (36) (20) (63)
(Gains)/losses on settlements ...... (499) – – 5 (41) 1
Total (income)/expense .............. (179) 255 490 340 222 204
The US$499 million settlement gain in 2009 relates to an accounting benefit following a restructuring of the basis of
delivery of death in service and ill health early retirement benefits to certain UK employees.
Summary
HSBC Bank (UK) Pension Scheme
2009 2008 2007 2006 2005
US$m US$m US$m US$m US$m
Defined benefit obligation ..................................... (21,523) (15,257) (23,512) (24,332) (20,587)
Fair value of plan assets ......................................... 17,701 14,865 22,704 20,587 17,396
Net deficit .............................................................. (3,822) (392) (808) (3,745) (3,191)
Experience gains/(losses) on plan liabilities ......... (234) (49) (64) 540 70
Experience gains/(losses) on plan assets ............... 871 (2,861) 29 – 1,623
Gains/(losses) from changes in actuarial
assumptions ....................................................... (4,329) 3,081 2,459 (570) (2,038)
Total net actuarial gains/(losses) ........................... (3,692) 171 2,424 (30) (345)
Other plans
2009 2008 2007 2006 2005
US$m US$m US$m US$m US$m
Defined benefit obligation ..................................... (9,109) (8,787) (8,873) (7,916) (7,102)
Fair value of plan assets ......................................... 6,822 6,024 7,768 7,116 6,356
Net deficit .............................................................. (2,287) (2,763) (1,105) (800) (746)
Experience gains/(losses) on plan liabilities ......... 20 (52) (354) (167) (113)
Experience gains/(losses) on plan assets ............... 65 (1,452) 157 203 78
Gains/(losses) from changes in actuarial
assumptions ....................................................... 94 (306) (121) (44) (393)
Total net actuarial gains/(losses) ........................... 179 (1,810) (318) (8) (428)