HSBC 2009 Annual Report Download - page 397

395
HSBC Bank (UK) Pension Scheme
2009 2008
US$m US$m
Discount rate
Change in pension obligation at year end from a 25bps increase ........................................................... (879) (559)
Change in pension obligation at year end from a 25bps decrease .......................................................... 946 595
Change in 2010 pension cost from a 25bps increase .............................................................................. (13) (9)
Change in 2010 pension cost from a 25bps decrease .............................................................................. 13 10
Rate of inflation
Change in pension obligation at year end from a 25bps increase ........................................................... 964 525
Change in pension obligation at year end from a 25bps decrease .......................................................... (907) (493)
Change in 2010 pension cost from a 25bps increase .............................................................................. 65 45
Change in 2010 pension cost from a 25bps decrease .............................................................................. (63) (41)
Rate of increase for pensions in payment and deferred pensions
Change in pension obligation at year end from a 25bps increase ........................................................... 800 349
Change in pension obligation at year end from a 25bps decrease .......................................................... (766) (328)
Change in 2010 pension cost from a 25bps increase .............................................................................. 50 29
Change in 2010 pension cost from a 25bps decrease .............................................................................. (49) (23)
Rate of pay increase
Change in pension obligation at year end from a 25bps increase ........................................................... 195 172
Change in pension obligation at year end from a 25bps decrease .......................................................... (174) (168)
Change in 2010 pension cost from a 25bps increase .............................................................................. 18 16
Change in 2010 pension cost from a 25bps decrease .............................................................................. (16) (15)
Investment return
Change in 2010 pension cost from a 25bps increase .............................................................................. (44) (36)
Change in 2010 pension cost from a 25bps decrease .............................................................................. 44 36
Mortality
Change in pension obligation from each additional year of longevity assumed .................................... 487 365
The following table shows the effect of changes in the discount rate and in mortality rates on plans other than the
principal plan:
Other plans
2009 2008
US$m US$m
Change in defined benefit obligation at year end from a 25bps increase in discount rate ..................... (269) (255)
Change in 2010 defined benefit charge from a 25bps increase in discount rate .................................... (3) (4)
Increase in defined benefit obligation from each additional year of longevity assumed ....................... 120 91
Defined benefit pension plans
The calculation of the net liability under the Group’s defined benefit pension plans is set out below together with the
expected rates of return and plan assets used to measure the net defined benefit pension costs in each subsequent year.
HSBC Bank (UK) Pension Scheme
2009 2008
Expected
rates of return Value
Expected
rates of return Value
% US$m % US$m
Fair value of plan assets ............................................................ 17,701 14,865
Equities ................................................................................. 8.4 2,770 8.1 2,242
Bonds .................................................................................... 5.3 12,597 5.7 10,999
Property ................................................................................ 7.7 1,502 6.9 1,184
Other ..................................................................................... 5.3 832 4.2 440
Defined benefit obligation ........................................................ (21,523) (15,257)
Present value of funded obligations ..................................... (21,523) (15,257)
Net liability ............................................................................... (3,822) (392)