Aviva 2013 Annual Report Download - page 205

Strategic report Governance IFRS Financial statements Other information
Aviva plc
Annual report and accounts 2013
203
Notes to the consolidated financial statements continued
48 – Provisions
This note details the non-insurance provisions that the Group holds, and shows the movements in these during the year.
(a) Carrying amounts
2013
£m
2012
£m
Total IAS 19 obligations to main staff pension schemes (Note 49(a)) 367 651
Deficits in other staff pension schemes 43 88
Total IAS 19 obligations to staff pension schemes 410 739
Restructuring provisions 140 144
Other provisions 437 423
Total provisions 987 1,306
Less: Amounts classified as held for sale (3) (187)
984 1,119
Other provisions comprise many small provisions throughout the Group for obligations such as costs of compensation, litigation
and staff entitlements.
Of the total, £532 million (2012: £901 million) is expected to be settled more than one year after the statement of financial
position date.
(b) Movements on restructuring and other provisions
2013 2012
Restructuring
provisions
£m
Other
provisions
£m
Total
£m
Restructuring
provisions
£m
Other
provisions
£m
Total
£m
At 1 January 144 423 567 106 398 504
Additional provisions 222 219 441 236 120 356
Unused amounts reversed — (22) (22) — (30) (30)
Change in the discounted amount arising from passage of time — 1 1 — 5 5
Charge to income statement 222 198 420 236 95 331
Utilised during the year (210) (72) (282) (197) (53) (250)
Disposal of subsidiaries (17) (116) (133) — (3) (3)
Foreign exchange rate movements 1 4 5 (1) (14) (15)
At 31 December 140 437 577 144 423 567
Disposal of subsidiaries in 2013 includes £132 million relating to US Life.
49 – Pension obligations
(a) Introduction
The Group operates a large number of defined benefit and defined contribution pension schemes. The material defined benefit
schemes are in the UK, Ireland, and Canada with the main UK scheme being the largest. The assets and liabilities of these defined
benefit schemes as at 31 December 2013 are shown below.
2013 2012
UK
£m
Ireland
£m
Canada
£m
Total
£m
UK
£m
Ireland
£m
Canada
£m
Total
£m
Total fair value of scheme assets (see b(ii) below) 11,734 431 233 12,398 11,647 406 228 12,281
Present value of defined benefit obligation (11,185) (640) (334) (12,159) (10,501) (777) (397) (11,675)
Net surplus/(deficits) in the schemes 549 (209) (101) 239 1,146 (371) (169) 606
Surplus included in other assets (note 29) 606 — — 606 1,257 — — 1,257
Deficit included in provisions (note 48) (57) (209) (101) (367) (111) (371) (169) (651)
549 (209) (101) 239 1,146 (371) (169) 606
This note gives full IAS 19, Employee Benefits, disclosures for the above schemes. The smaller ones, while still measured under IAS
19, are included as one total within Provisions (see note 48). Similarly, while the charges to the income statement for the main
schemes are shown in section (b)(i) below, the total charges for all pension schemes are disclosed in section (d) below.
The assets of the UK, Irish and Canadian schemes are held in separate trustee-administered funds to meet long-term pension
liabilities to past and present employees. In all schemes, the appointment of trustees of the funds is determined by their trust
documentation, and they are required to act in the best interests of the schemes’ beneficiaries. The long-term investment
objectives of the trustees and the employers are to limit the risk of the assets failing to meet the liabilities of the schemes over
the long term, and to maximise returns consistent with an acceptable level of risk so as to control the long-term costs of
these schemes.
A full actuarial valuation of each of the defined benefit schemes is carried out at least every three years for the benefit of
scheme trustees and members. Actuarial reports have been submitted for each scheme within this period, using appropriate
methods for the respective countries on local funding bases.