HSBC 2011 Annual Report Download - page 324

HSBC HOLDINGS PLC
Notes on the Financial Statements (continued)
7 – Employee compensation and benefits
322
The special contributions of US$389m to other plans include an additional contribution of US$357m to the HSBC
North America (US) Retirement Income Plan which was made to maintain a minimum funding level.
The actual return on plan assets for the year ended 31 December 2011 was a positive return of US$5,432m (2010:
positive US$3,695m).
HSBC expects to make US$571m of contributions to defined benefit pension plans during 2012. Benefits expected to
be paid from the plans to retirees over each of the next five years, and in aggregate for the five years thereafter, are as
follows:
Benefits expected to be paid from plans
2012 2013 2014 2015 2016 2017-2021
US$m US$m US$m US$m US$m US$m
HSBC Bank (UK) Pension Scheme .. 787 828 873 938 997 6,174
Other plans ......................................... 524 532 561 579 611 3,839
Total (income)/expense recognised in the income statement in ‘Employee compensation and benefits’
HSBC Bank (UK) Pension Scheme Other plans
2011 2010 2009 2011 2010 2009
US$m US$m US$m US$m US$m US$m
Current service cost ........................... 251 252 260 299 300 334
Interest cost ........................................ 1,233 1,148 1,019 456 438 397
Expected return on plan assets .......... (1,325) (1,092) (959) (481) (437) (381)
Past service cost ................................. (587) – – 45 12 21
Gains on curtailments ........................ – – – (59) (151) (36)
(Gains)/losses on settlements ............ – – (499) (4) (2) 5
Total (income)/expense ..................... (428) 308 (179) 256 160 340
The US$499m settlement gain in 2009 relates to an accounting benefit following a restructuring of the basis of
delivery of death in service and ill health early retirement benefits to certain UK employees.
Summary
HSBC Bank (UK) Pension Scheme
2011 2010 2009 2008 2007
US$m US$m US$m US$m US$m
Present value of defined benefit obligation .................. (24,367) (22,858) (21,523) (15,257) (23,512)
Fair value of plan assets ............................................... 26,604 22,236 17,701 14,865 22,704
Net surplus/(deficit) ...................................................... 2,237 (622) (3,822) (392) (808)
Experience losses on plan liabilities ............................. (383) (327) (234) (49) (64)
Experience gains/(losses) on plan assets ...................... 3,426 1,772 871 (2,861) 29
Gains/(losses) from changes in actuarial
assumptions .............................................................. (1,098) (1,124) (4,329) 3,081 2,459
Total net actuarial gains/(losses) .................................. 1,945 321 (3,692) 171 2,424
Other plans
2011 2010 2009 2008 2007
US$m US$m US$m US$m US$m
Present value of defined benefit obligation .................. (10,680) (9,785) (9,109) (8,787) (8,873)
Fair value of plan assets ............................................... 8,232 7,559 6,822 6,024 7,768
Net deficit ..................................................................... (2,448) (2,226) (2,287) (2,763) (1,105)
Experience gains/(losses) on plan liabilities ................ (78) (73) 20 (52) (354)
Experience gains/(losses) on plan assets ...................... 200 394 65 (1,452) 157
Gains/(losses) from changes in actuarial
assumptions .............................................................. (764) (596) 94 (306) (121)
Total net actuarial gains/(losses) .................................. (642) (275) 179 (1,810) (318)