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HSBC BANK PLC
Notes on the Financial Statements (continued)
125
Cumulative actuarial gains/(losses) recognised in other comprehensive income
2014
2013
£m
£m
At 1 January
(1,365)
(408)
HSBC Bank (UK) Pension Scheme
1,678
(973)
Other plans
(52)
2
Healthcare plans
12
14
Total actuarial gains/(losses) recognised in other comprehensive income for the year
1,638
(957)
At 31 December
273
(1,365)
Pension plans
Defined benefit pension arrangements for bank employees who are members of defined benefit pension plans, as well as
certain other employees of the group and HSBC, are provided principally by the HSBC Bank (UK) Pension Scheme (the
‘Scheme’), the assets of which are held in a separate trust fund. The Pension Scheme is administered by a corporate
trustee, HSBC Bank Pension Trust (UK) Limited (the ‘Trustee’), whose Board is comprised of 13 Directors, four of whom are
elected by employees and two by pensioners. The Trustee Directors of the Pension Scheme are required to act in the best
interest of the Scheme's beneficiaries.
Post-employment defined benefit plans’ principal actuarial assumptions
The principal actuarial financial assumptions used to calculate the group’s obligations under its UK defined benefit
pension and post-employment healthcare plans at 31 December were as follows. These assumptions will also form the
basis for measuring periodic costs under the plans in the following year:
Discount
rate
Inflation
rate
Rate of
increase for
pensions
Rate of pay
Increase
Healthcare
cost trend
rates
%
%
%
%
%
2014
3.70
3.20
3.00
3.70
6.90
2013
4.45
3.60
3.30
4.10
7.10
The group determines the discount rates to be applied to its obligations in consultation with the plans’ local actuaries, on
the basis of the current average yield of high quality (AA rated or equivalent) debt instruments, with maturities consistent
with those of the defined benefit obligations.
The mortality tables used and implied average life expectancy at 65 in the UK at 31 December were as follows:
Mortality
table
Life expectancy at
age 65 for a male
member currently:
Life expectancy at
age 65 for a female
member currently:
Aged 65
Aged 45
Aged 65
Aged 45
2014
SAPS S11
23.6
25.2
25.0
26.9
2013
SAPS S11
23.6
25.2
24.9
26.8
1 Adjusted SAPS S1 with CMI_2014 improvements (2013: CMI_2013 improvements) and a 1.25 per cent long-term annual improvement. Light
table with 1.01 rating for male pensioners and 1.07 rating for female pensioners.