BP 2014 Annual Report Download - page 207

6. Pensions – continued
2014 2013
Movements in benefit obligation during the year
Benefit obligation at 1 January 30,496 29,259
Exchange adjustment (1,989) 705
Current service costa494 497
Interest cost 1,375 1,221
Curtailments –(24)
Disposals –(9)
Past Service Cost –2
Contributions by plan participantsd39 37
Benefit payments (funded plans)b(1,231) (1,087)
Benefit payments (unfunded plans)b(8) (4)
Actuarial loss (gain) on obligation 3,181 (101)
Benefit obligation at 31 December 32,357 30,496
Movements in fair value of plan assets during the year
Fair value of plan assets at 1 January 31,516 27,346
Exchange adjustment (1,958) 822
Expected return on plan assetsac 2,147 1,803
Contributions by plan participantsd39 37
Contributions by employers (funded plans) 713 597
Disposals –(9)
Benefit payments (funded plans)b(1,231) (1,087)
Actuarial gain on plan assetsc547 2,007
Fair value of plan assets at 31 Decembere31,773 31,516
(Deficit) surplus at 31 December (584) 1,020
aThe costs of managing the fund’s investments are offset against the investment return, the costs of administering our pensions plan benefits are included in current service cost.
bThe benefit payments amount shown above comprises $1,218 million benefits plus $21 million of plan expenses incurred in the administration of the benefit.
cThe actual return on plan assets is made up of the sum of the expected return on plan assets and the actuarial gain on plan assets as disclosed above.
dThe contributions by plan participants for the UK are mostly comprised of contributions made under salary sacrifice arrangements.
eReflects $31,600 million of assets held in the BP Pension Fund (2013 $31,362 million) and $134 million held in the BP Global Pension Trust (2013 $114 million), with $39 million representing the
company’s share of Merchant Navy Officers Pension Fund (2013 $40 million).
2014 2013
Reconciliation of plan (deficit) surplus to balance sheet
(Deficit) surplus at 31 December (584) 1,020
Deferred tax –(41)
(584) 979
Represented by
Plans in surplus 15 1,238
Plans in deficit (599) (259)
(584) 979
The aggregate level of employer contributions into the BP Pension Fund in 2015 is expected to be $519 million.
2014 2013 2012 2011 2010
History of (deficit) surplus and of experience gains and losses
Benefit obligation at 31 December 32,357 30,496 29,259 25,675 20,742
Fair value of plan assets at 31 December 31,773 31,516 27,346 23,587 22,612
(Deficit) surplus (584) 1,020 (1,913) (2,088) 1,870
Experience gains and losses on plan liabilities
Amount ($ million) (42) 41 (116) (84) 12
Percentage of benefit obligation 0% 0% 0% 0% 0%
Actual return less expected return on pension plan assets
Amount ($ million) 547 2,007 989 (1,976) 1,479
Percentage of plan assets 2% 6% 4% (8)% 7%
Actuarial (loss) gain recognized in statement of total recognized gains and losses
Amount ($ million) (2,634) 2,108 (573) (4,770) 457
Percentage of benefit obligation (8)% 7% (2)% (19)% 2%
Cumulative amount recognized in statement of total recognized gains and losses (7,104) (4,470) (6,578) (6,005) (1,235)
The parent company financial statements of BP p.l.c. on pages 197-206 do not form part of BP’s Annual Report on Form 20-F as filed with the SEC.
Financial statements
BP Annual Report and Form 20-F 2014 203