HSBC 2005 Annual Report Download - page 269

267
Changes in the present value of defined benefit obligations
2005 2004
US$m US$m
At 1 January ................................................................................................................................... 982 886
Current service cost ....................................................................................................................... 18 17
Interest cost .................................................................................................................................... 63 58
Contributions by employees .......................................................................................................... 61
Actuarial losses/(gains) .................................................................................................................. 44 (5)
Benefits paid .................................................................................................................................. (50) (43)
Past service cost:
– vested immediately ................................................................................................................. (13) (2)
– unvested benefits .................................................................................................................... (29) –
Acquisitions ................................................................................................................................... –36
Exchange differences ..................................................................................................................... (17) 34
At 31 December ............................................................................................................................. 1,004 982
Changes in the fair value of plan assets
2005 2004
US$m US$m
At 1 January ................................................................................................................................... 79 62
Expected return on plan assets ....................................................................................................... 10 8
Contributions by HSBC ................................................................................................................. 19 14
Experience gains ............................................................................................................................ 1–
Benefits paid .................................................................................................................................. (7) (5)
Exchange differences ..................................................................................................................... 5–
At 31 December ............................................................................................................................. 107 79
The actual return on plan assets for the year ended 31 December 2005 was US$11 million (2004: US$8 million).
HSBC expects to make US$19 million of contributions to post-employment healthcare benefit plans during 2006.
Benefits expected to be paid from the plans to retirees over each of the next five years, and in aggregate for the five
years thereafter, are:
2006 2007 2008 2009 2010 2011-2016
US$m US$m US$m US$m US$m US$m
Significant plans ................................... 48 50 52 55 58 359
Total expense recognised in the income statement in ‘Employee compensation and benefits’
2005 2004
US$m US$m
Current service cost ....................................................................................................................... 18 17
Interest cost .................................................................................................................................... 63 58
Expected return on plan assets ....................................................................................................... (10) (8)
Past service cost ............................................................................................................................. (13) (2)
Total expense ................................................................................................................................. 58 65