HSBC 2009 Annual Report Download - page 396

HSBC HOLDINGS PLC
Notes on the Financial Statements (continued)
Note 8
394
Mortality assumptions are significant in measuring the Group’s obligations under its defined benefit pension and
post-employment healthcare plans, particularly given the maturity of the plans. The mortality tables and average life
expectancy at 65 used at 31 December 2009 were as follows:
Mortality table
Life expectancy at
age 65 for a male
member currently:
Life expectancy at
age 65 for a female
member currently:
Aged 65 Aged 45 Aged 65 Aged 45
UK .............................................. SAPS MC1 22.3 24.2 23.3 25.2
Hong Kong ................................ n/a n/a n/a n/a n/a
US .............................................. RP 2000 fully generational 19.2 20.7 21.2 22.1
Jersey ......................................... 80% of PNA002 24.1 26.1 26.5 28.4
Mexico ....................................... EMSSA-97, AA generational scale from
RP 2000 series 18.5 20.1 21.1 22.0
Brazil .......................................... RP 2000 fully generational 19.2 20.7 21.2 22.1
France ........................................ TG 05 23.2 26.0 26.7 29.6
Canada ....................................... UP94 generational 19.5 21.1 22.0 22.8
Switzerland ................................ BVG 20053 17.9 17.9 21.0 21.0
Germany ..................................... Heubeck 2005 G 18.3 21.0 22.4 25.0
1 SAPS MC projections with 1 per cent minimum improvement beyond 2002. Light table with 1.08 rating for male and standard table with
1.06 rating for female.
2 PNA00 year of birth and medium cohort with 1 per cent minimum improvement thereafter.
3 Additional 8.5 per cent liability loading for future mortality improvements.
The mortality tables and average life expectancy at 65 used at 31 December 2008 were as follows:
Mortality table
Life expectancy at
age 65 for a male
member currently:
Life expectancy at
age 65 for a female
member currently:
Aged 65 Aged 45 Aged 65 Aged 45
UK .............................................. PA921 20.8 22.8 24.1 26.2
Hong Kong ................................ n/a n/a n/a n/a n/a
US .............................................. RP 2000 fully generational 19.1 20.6 21.1 22.0
Jersey ......................................... 90% of PNA002 23.0 25.0 25.4 27.3
Mexico ....................................... EMSSA-97, AA generational scale
from RP 2000 series 18.3 19.8 21.0 21.9
Brazil .......................................... RP 2000 fully generational 19.1 20.6 21.1 22.0
France ........................................ TG 05 23.1 25.9 26.6 29.4
Canada pension plans ................ Between UP94 C2015 and
UP94 C2027
18.5
and 19.4
18.5
and 19.4
21.1
and 21.6
21.1
and 21.6
Canada healthcare plan .............. UP94 C2025 19.3 19.3 21.5 21.5
Switzerland ................................ BVG 20053 17.9 17.9 21.0 21.0
Germany ..................................... Heubeck 2005 G 18.0 20.7 22.1 24.7
1 PA92 with standard improvements to 2005 and medium cohort with 1 per cent minimum improvement thereafter.
2 PNA00 year of birth and medium cohort with 1 per cent minimum improvement thereafter.
3 Additional 8.5 per cent liability loading for future mortality improvements.
Actuarial assumption sensitivities
The discount rate is sensitive to changes in market conditions arising during the reporting period. The mortality rates
used are sensitive to experience from the plan member profile. The following table shows the effect of changes in
these and the other key assumptions on the principal plan: