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HSBC BANK PLC
Notes on the Financial Statements (continued)
126
Actuarial assumption sensitivities
The discount rate is sensitive to changes in market conditions arising during the reporting period. The mortality rates used
are sensitive to experience from the plan member profile. The following table shows the effect of changes in these and
the other key assumptions on the principal plan:
HSBC Bank (UK) Pension Scheme
2014
2013
£m
£m
Discount rate
Change in pension obligation at year end from a 25bps increase
(911)
(818)
Change in pension obligation at year end from a 25bps decrease
977
877
Change in following year pension cost from a 25bps increase
(48)
(49)
Change in following year pension cost from a 25bps decrease
47
49
Rate of inflation
Change in pension obligation at year end from a 25bps increase
658
601
Change in pension obligation at year end from a 25bps decrease
(760)
(688)
Change in following year pension cost from a 25bps increase
28
33
Change in following year pension cost from a 25bps decrease
(31)
(36)
Rate of increase for pensions in payment and deferred pensions
Change in pension obligation at year end from a 25bps increase
762
787
Change in pension obligation at year end from a 25bps decrease
(723)
(741)
Change in following year pension cost from a 25bps increase
32
41
Change in following year pension cost from a 25bps decrease
(29)
(38)
Rate of pay increase
Change in pension obligation at year end from a 25bps increase
152
128
Change in pension obligation at year end from a 25bps decrease
(149)
(124)
Change in following year pension cost from a 25bps increase
8
10
Change in following year pension cost from a 25bps decrease
(7)
(9)
Mortality
Change in pension obligation from each additional year of longevity assumed
493
431
Defined benefit pension plans
Net asset/(liability) under defined benefit pension plans
Fair value of plan assets
Present value of defined
benefit obligations
Net benefit asset/(liability)
HSBC Bank
(UK) Pension
Scheme
Other
plans
HSBC Bank
(UK)
Pension
Scheme
Other
plans
HSBC Bank
(UK) Pension
Scheme
Other
plans
£m
£m
£m
£m
£m
£m
Net defined benefit liability at 1 January 2014
19,156
354
(17,922)
(547)
1,234
(193)
Current service cost
–
–
(138)
(18)
(138)
(18)
Past service cost and (gains)/ losses from settlements
–
–
(16)
1
(16)
1
Service cost
–
–
(154)
(17)
(154)
(17)
Net interest (income)/cost on the net defined benefit
liability
842
11
(784)
(16)
58
(5)
Re–measurement effects recognised in other
comprehensive income
2,954
10
(1,276)
(62)
1,678
(52)
- return on plan assets (excluding interest income)
2,954
10
–
–
2,954
10
- actuarial losses
–
–
(1,408)
(55)
(1,408)
(55)
- other changes
–
–
132
(7)
132
(7)
Exchange differences
–
(24)
–
49
–
25
Contributions by the group
240
14
–
–
240
14
- normal
160
14
–
–
160
14
- special
80
–
–
–
80
–
Contributions by employees
23
–
(23)
(7)
–
(7)
Benefits paid
(580)
(1)
580
19
–
18
Administrative costs paid by the plan
(24)
–
24
–
–
At 31 December 2014
22,611
364
(19,555)
(581)
3,056
(217)
Present value of defined benefit obligation relating to :
actives
–
–
(6,276)
(374)
–
–
deferreds
–
–
(5,645)
(73)
–
–
pensioners
–
–
(7,634)
(134)
–
–