BP 2013 Annual Report Download - page 186

30. Pensions and other post-retirement benefits – continued
$ million
2013
UK
pension
plans
US
pension
plans
US other
post-
retirement
benefit
plans
Other
plans Total
Analysis of the amount charged to profit before interest and taxation
Current service costa497 358 49 177 1,081
Past service costb(22) (49) – 27 (44)
Settlement – – – (1) (1)
Operating charge relating to defined benefit plans 475 309 49 203 1,036
Payments to defined contribution plans 24 223 – 53 300
Total operating charge 499 532 49 256 1,336
Interest income on plan assets (1,139) (240) – (130) (1,509)
Interest on plan liabilities 1,221 305 101 362 1,989
Other finance expense 82 65 101 232 480
Analysis of the amount recognized in other comprehensive income
Actual asset return less interest income on plan assetsa2,671 730 – 114 3,515
Change in financial assumptions underlying the present value of the plan liabilities 60 1,054 106 283 1,503
Change in demographic assumptions underlying the present value of the plan liabilities – 14 – (65) (51)
Experience gains and losses arising on the plan liabilities 41 (205) (44) 5 (203)
Remeasurements recognized in other comprehensive income 2,772 1,593 62 337 4,764
Movements in benefit obligation during the year
Benefit obligation at 1 January 29,259 10,029 2,845 10,148 52,281
Exchange adjustments 705 – – 132 837
Operating charge relating to defined benefit plans 475 309 49 203 1,036
Interest cost 1,221 305 101 362 1,989
Contributions by plan participantsc37 – – 13 50
Benefit payments (funded plans)d(1,087) (1,364) (1) (192) (2,644)
Benefit payments (unfunded plans)d(4) (52) (233) (395) (684)
Disposals (9) – (61) (13) (83)
Remeasurements (101) (863) (62) (223) (1,249)
Benefit obligation at 31 Decemberae 30,496 8,364 2,638 10,035 51,533
Movements in fair value of plan assets during the year
Fair value of plan assets at 1 January 27,346 7,786 1 3,533 38,666
Exchange adjustments 822 – – (37) 785
Interest income on plan assetsa1,139 240 – 130 1,509
Contributions by plan participantsc37 – – 13 50
Contributions by employers (funded plans) 597 386 – 289 1,272
Benefit payments (funded plans)d(1,087) (1,364) (1) (192) (2,644)
Disposals (9) – – (13) (22)
Remeasurementsf2,671 730 – 114 3,515
Fair value of plan assets at 31 December 31,516 7,778 – 3,837 43,131
Surplus (deficit) at 31 December 1,020 (586) (2,638) (6,198) (8,402)
Represented by
Asset recognized 1,291 6 – 79 1,376
Liability recognized (271) (592) (2,638) (6,277) (9,778)
1,020 (586) (2,638) (6,198) (8,402)
The surplus (deficit) may be analysed between funded and unfunded plans as follows
Funded 1,285 (5) – (320) 960
Unfunded (265) (581) (2,638) (5,878) (9,362)
1,020 (586) (2,638) (6,198) (8,402)
The defined benefit obligation may be analysed between funded and unfunded
plans as follows
Funded (30,231) (7,783) – (4,157) (42,171)
Unfunded (265) (581) (2,638) (5,878) (9,362)
(30,496) (8,364) (2,638) (10,035) (51,533)
aThe costs of managing the plan’s investments are treated as being part of the return on plan assets, the costs of administering our pension plan benefits are generally included in current service cost
and the costs of administering our other post-retirement benefit plans are included in the benefit obligation.
bPast service costs include a credit of $73 million as the result of a curtailment in the pension arrangements of a number of employees in the UK and US following divestment transactions. A charge of
$29 million for special termination benefits represents the increased liability arising as a result of early retirements occurring as part of restructuring programmes.
cMost of the contributions made by plan participants into UK pension plans were made under salary sacrifice.
dThe benefit payments amount shown above comprises $3,269 million benefits plus $59 million of plan expenses incurred in the administration of the benefit.
eThe benefit obligation for other plans includes $4,874 million for the German plan, which is largely unfunded.
fThe actual return on plan assets is made up of the sum of the interest income on plan assets and the remeasurment of plan assets as disclosed above.
182 BP Annual Report and Form 20-F 2013