HSBC 2005 Annual Report Download - page 267

265
Changes in the present value of defined benefit obligations
2005 2004
HSBC Bank
(UK) Pension
Scheme
Other
plans
HSBC Bank
(UK) Pension
Scheme
Other
plans
US$m US$m US$m US$m
At 1 January ................................................................. 19,988 6,501 16,619 5,651
Current service cost ..................................................... 383 283 348 257
Interest cost .................................................................. 981 333 921 326
Contributions by employees ........................................ –14 –11
Actuarial losses ............................................................ 1,968 506 956 285
Benefits paid ................................................................ (540) (338) (586) (276)
Past service cost – vested immediately ........................ –(3)–(8)
Past service cost – unvested benefits ........................... –3––
Acquisitions ................................................................. 84 – –51
(Gains)/losses on curtailments ..................................... –(4)242 (17)
Liabilities extinguished on settlements ........................ –(6)– (10)
Exchange differences ................................................... (2,277) (187) 1,488 231
At 31 December ........................................................... 20,587 7,102 19,988 6,501
Changes in the fair value of plan assets
2005 2004
HSBC Bank
(UK) Pension
Scheme
Other
plans
HSBC Bank
(UK) Pension
Scheme
Other
plans
US$m US$m US$m US$m
At 1 January ................................................................. 15,105 5,823 12,837 5,275
Expected return on plan assets...................................... 954 401 927 382
Contributions by HSBC ............................................... 1,986 448 289 171
– normal .................................................................. 240 156 289 171
– special ................................................................... 1,746 292 ––
Contributions by employees ........................................ –14 –11
Experience gains .......................................................... 1,623 78 506 3
Benefits paid ................................................................ (540) (287) (586) (224)
Acquisitions ................................................................. 58 – –41
Assets distributed on settlements ................................. –(3)–(4)
Exchange differences ................................................... (1,790) (118) 1,132 168
At 31 December ........................................................... 17,396 6,356 15,105 5,823
The actual return on plan assets for the year ended 31 December 2005 was US$3,056 million (2004:
US$1,818 million). Following the US$1,746 million special contribution to the HSBC Bank (UK) Pension Scheme
in 2005, HSBC expects to make US$390 million of contributions to defined benefit pension plans during 2006.
Benefits expected to be paid from the plans to retirees over each of the next five years, and in aggregate for the five
years thereafter, are:
2006 2007 2008 2009 2010 2011-2016
US$m US$m US$m US$m US$m US$m
HSBC Bank (UK) Pension Scheme .... 577 592 608 625 642 4,231
Other significant plans ........................ 285 295 313 322 361 2,256