HSBC 2015 Annual Report Download - page 367

HSBC HOLDINGS PLC
365
Strategic Report Financial Review Corporate Governance Financial Statements Shareholder Information
Actuarial gains and losses comprise experience adjustments (the effects of differences between the previous actuarial assumptions and what
has actually occurred), as well as the effects of changes in actuarial assumptions.
The net defined benefit asset or liability represents the present value of defined benefit obligations reduced by the fair value of plan assets.
Any net defined benefit surplus is limited to the present value of available refunds and reductions in future contributions to the plan.
The cost of obligations arising from other post-employment defined benefit plans, such as defined benefit health-care plans, are accounted
for on the same basis as defined benefit pension plans.
The Group operates a number of pension plans throughout the world. Some are defined benefit plans, of which the largest is
the HSBC Bank (UK) Pension Scheme (‘the principal plan’). The Pension Risk section on page 189 and the Appendix to Risk on
page 225 contain details about the characteristics, risks and amount, timing and uncertainty of future cash flows and policies
and practices associated with the principal plan.
Income statement charge
2015 2014 2013
$m $m $m
Defined benefit pension plans 256 469 54
Defined contribution pension plans 793 687 597
Pension plans 1,049 1,156 651
Defined benefit and contribution healthcare plans 667 72
Year ended 31 December 1,055 1,223 723
Net assets/(liabilities) recognised on the balance sheet in respect of defined benefit plans
Fair value of
plan assets
Present value of
defined benefit
obligations
Effect of
limit on plan
surpluses Total
$m $m $m $m
Defined benefit pension plans 41,424 (38,326) (14) 3,084
Defined benefit healthcare plans 141 (762)
–
(621)
At 31 December 2015 41,565 (39,088) (14) 2,463
Total employee benefit liabilities
(within ‘Accruals, deferred income and other liabilities’) (2,809)
Total employee benefit assets
(within ‘Prepayments, accrued income and other assets’) 5,272
Defined benefit pension plans 44,824 (42,062) (17) 2,745
Defined benefit healthcare plans 179 (1,104)
–
(925)
At 31 December 2014 45,003 (43,166) (17) 1,820
Total employee benefit liabilities
(within ‘Accruals, deferred income and other liabilities’) (3,208)
Total employee benefit assets
(within ‘Prepayments, accrued income and other assets’) 5,028
Cumulative actuarial gains/(losses) recognised in other comprehensive income
2015 2014 2013
$m $m $m
At 1 January (2,026) (4,445) (3,844)
HSBC Bank (UK) Pension Scheme 121 2,764 (1,524)
Other plans (55) (274) 796
Healthcare plans 94 (88) 143
Change in the effect of limit on plan surpluses (30) 17 (16)
Total actuarial gains/(losses) recognised in other comprehensive income 130 2,419 (601)
At 31 December (1,896) (2,026) (4,445)
HSBC pension plans
2015 2014 2013
%% %
Percentage of HSBC employees:
–
enrolled in defined contribution plans 66 66 64
–
enrolled in defined benefit plans 22 22 23
–
covered by HSBC pension plans 88 88 87