Aviva 2014 Annual Report Download - page 209

Aviva plc Annual report and accounts 2014
205
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
2014
£m
2013
£m
Total IAS 19 obligations to main staff pension schemes (Note 49(a)) 391 367
Deficits in other staff pension schemes 43 43
Total IAS 19 obligations to staff pension schemes 434 410
Restructuring provisions 97 140
Other provisions 348 437
Total provisions 879 987
Less: Amounts classified as held for sale —(3)
879 984
Other provisions comprise many small provisions throughout the Group for obligations such as costs of compensation, litigation
and staff entitlements.
Of the total, £493 million (2013: £532 million) is expected to be settled more than one year after the statement of financial
position date.
(b) Movements on restructuring and other provisions
2014 2013
Restructuring
provisions
£m
Other
provisions
£m
Total
£m
Restructuring
provisions
£m
Other
provisions
£m
Total
£m
At 1 January 140 437 577 144 423 567
Additional provisions 74 150 224 222 219 441
Unused amounts reversed
—
(118) (118) — (22) (22)
Change in the discounted amount arising from passage of time
—
2 2 — 1 1
Charge to income statement 74 34 108 222 198 420
Utilised during the year (115) (112) (227) (210) (72) (282)
Disposal of subsidiaries
—
(7) (7) (17) (116) (133)
Foreign exchange rate movements (2) (4) (6) 1 4 5
At 31 December 97 348 445 140 437 577
49 – Pension obligations
(a) Introduction
The Group operates a 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 2014 are shown below.
2014 2013
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) 14,733 483 258 15,474 11,734 431 233 12,398
Present value of defined benefit obligation (12,079) (748) (343) (13,170) (11,185) (640) (334) (12,159)
Net surpluses/(deficits) in the schemes 2,654 (265) (85) 2,304 549 (209) (101) 239
Surpluses included in other assets (note 29) 2,695
—
—
2,695 606 —
—
606
Deficits included in provisions (note 48) (41) (265) (85) (391) (57) (209) (101) (367)
2,654 (265) (85) 2,304 549 (209) (101) 239
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.
Aviva plc Annual report and accounts 2014 |205
IFRS Financial statements