HSBC 2013 Annual Report Download - page 82

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80
4 Employee compensation and benefits (continued)
c Post-employment benefit plans (continued)
Mortality assumption
Assumptions regarding future mortality have been based on published mortality tables. The life expectancies underlying
the defined benefit obligation at the reporting dates are as follows:
Average years from age 65
2013 2012
For a male currently aged 65 ......................................................................................... 22 19
For a male currently aged 45 ......................................................................................... 23 21
For a female currently aged 65 ...................................................................................... 24 22
For a female currently aged 45 ...................................................................................... 25 23
Actuarial assumption sensitivities
The following table shows the effect of a ¼ percentage point change (‘25bps’) in key assumptions on the present value
of defined benefit obligation at 31 December:
Pension plans
2013
$m
2012
$m
Discount rate
Change in defined benefit obligation at year end from a 25 bps increase .............. (22) (23)
Change in defined benefit obligation at year end from a 25 bps decrease............... 23 23
Rate of pay increase
Change in defined benefit obligation at year end from a 25 bps increase ............... 910
Change in defined benefit obligation at year end from a 25 bps decrease............... (9) (9)
Non-pension plans
Change in defined benefit obligation at year end from a 25 bps increase
in the discount rate ................................................................................................... (6) (6)
Increase in defined benefit obligation from each additional year of longevity assumed .... 66
Plan Assets
2013
$m
2012
$m
Fair value of plan assets
Equities .................................................................................................................... 233 260
Bonds ....................................................................................................................... 245 147
Other – principally bank balances and short term investments ............................... 83
486 410
Substantially all the equities and bonds are Level 1 (note 25). Bank balances and short term investments are considered
Level 2.
Notes on the Consolidated Financial Statements (continued)
HSBC BANK CANADA