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79
4 Employee compensation and benefits
a Total employee compensation
2013
$m
2012
$m
Wages and salaries ......................................................................................................... 504 525
Post-employee benefits .................................................................................................. 62 61
Other .............................................................................................................................. 48 73
614 659
b Post-employment benefits
We sponsor a number of defined benefit and defined contribution plans providing pension, other retirement and
post-employment benefits to eligible employees. Non-pension plans comprise of healthcare and other post-employment
benefits and are not funded.
Income statement charge 2013
$m
2012
$m
Defined benefit plans
Pension plans ........................................................................................................... 20 19
Non-pension plans ................................................................................................... 12 –
Defined contribution pension plans ............................................................................... 30 31
62 50
Curtailment and settlement gains and other amounts related to restructuring
included above ......................................................................................................... –11
Post-employment benets .............................................................................................. 62 61
c Post-employment benefit plans
Principal actuarial assumptions
The principal actuarial financial assumptions used to calculate the bank’s obligations under its defined plans are
presented in the table below. The 2013 and 2012 assumptions will also form and have formed the basis for measuring
periodic costs under the plans in 2014 and 2013 respectively.
Pension plans Non-pension plans
2013
%
2012
%2013
%
2012
%
Discount rate ............................................................... 4.50–4.75 4.0–4.5 4.50–4.75 4.0–4.5
Rate of pay increase .................................................... 3.4 3.0–3.4 3.4 3.0–3.4
Healthcare cost trend rates – Initial rate ..................... n/a n/a 7.2 7.2–8.0
Healthcare cost trend rates – Ultimate rate1 ............... n/a n/a 4.9 4.9–5.0
1 The non-pension ‘Healthcare cost trend rates – Ultimate rate’ is applied from 2020.
The bank determines the discount rates to be applied to its obligations in consultation with the plans’ local actuaries, on
the basis of the current average yield of high quality Canadian corporate bonds, with maturities consistent with those of
the defined benefit obligations. At 31 December 2013, the weighted average duration of the defined benefit obligation
was 16.6 years.