HSBC 2009 Annual Report Download - page 401

399
HSBC expects to make US$56 million (2008: US$4 million) of contributions to post-employment healthcare benefit
plans during 2010. Benefits expected to be paid from the plans to retirees over each of the next five years, and in
aggregate for the five years thereafter, are:
2010 2011 2012 2013 2014 2015-2019
US$m US$m US$m US$m US$m US$m
Significant plans ......................... 52 53 54 56 58 323
Total expense recognised in the income statement in ‘Employee compensation and benefits’
2009 2008 2007
US$m US$m US$m
Current service cost ................................................................................................. 11 19 25
Interest cost .............................................................................................................. 55 65 67
Expected return on plan assets ................................................................................ (11) (12) (13)
Past service cost ....................................................................................................... (2) (2) (4)
Gains on curtailments .............................................................................................. (22) (31) (42)
Gains on settlements ................................................................................................ – (26) –
Total expense ........................................................................................................... 31 13 33
Summary
2009 2008 2007 2006 2005
US$m US$m US$m US$m US$m
Defined benefit obligation ....................................... (937) (839) (1,038) (1,106) (1,004)
Fair value of plan assets ........................................... 142 128 146 133 107
Net deficit ................................................................ (795) (711) (892) (973) (897)
Experience gains/(losses) on plan liabilities ........... 13 (34) 15 (12) 19
Experience gains/(losses) on plan assets ................. 8 (14) (6) (1) 1
Gains/(losses) from changes in actuarial
assumptions ......................................................... (57) 32 94 (25) (63)
Total net actuarial gains/(losses) ............................. (36) (16) 103 (38) (43)
Actuarial gains and losses represent experience adjustments on plan assets and liabilities as well as adjustments
arising from changes in actuarial assumptions. Total cumulative net actuarial losses recognised in other
comprehensive income at 31 December 2009 were US$25 million (2008: gains of US$11 million).
The actuarial assumptions of the healthcare cost trend rates have a significant effect on the amounts recognised. A
one percentage point change in assumed healthcare cost trend rates would have the following effects on amounts
recognised in 2009:
2009 2008
1% increase 1% decrease 1% increase 1% decrease
US$m US$m US$m US$m
Increase/(decrease) of the aggregate of the current service
cost and interest cost ............................................................. 8 (7) 9 (7)
Increase/(decrease) of defined benefit obligation .................... 86 (75) 77 (62)
HSBC Holdings
Employee compensation and benefit expense in respect of HSBC Holdings’ employees in 2009 amounted to
US$217 million (2008: US$218 million). The average number of persons employed by HSBC Holdings during 2009
was 876 (2008: 730).
Employees of HSBC Holdings who are members of defined benefit pension plans are principally members of either
the HSBC Bank (UK) Pension Scheme or the HSBC International Staff Retirement Benefits Scheme. HSBC
Holdings pays contributions to plans in accordance with schedules determined by the Trustees following consultation
with qualified actuaries.