Unilever 2009 Annual Report Download - page 118

Unilever Annual Report and Accounts 2009 115
19 Pensions and similar obligations (continued)
Demographic assumptions, such as mortality rates, are set having regard to the latest trends in life expectancy (including expectations for future
improvements), plan experience and other relevant data. The assumptions are reviewed and updated as necessary as part of the periodic actuarial
valuation of the pension plans. The assumptions made in 2009 are consistent with those applied in 2008.
Mortality assumptions for the most important countries are based on the following post-retirement mortality tables: (i) United Kingdom: PNMA 00
and PNFA 00 with medium cohort adjustment subject to a minimum annual improvement of 1% and scaling factors of 110% for current male
pensioners, 125% for current female pensioners and 105% for future male and female pensioners; (ii) the Netherlands: GBMV (2000-2005) with
age set back of four years for males and two years for females; (iii) United States: RP2000 with a projection period of 10-15 years; and (iv)
Germany: Heubeck 1998 (Periodentafel) with a scaling factor of 85%. These tables translate into the following years of life expectancy for
current pensioners aged 65:
United United
Kingdom Netherlands States Germany
Males 21 21 19 18
Females 23 22 22 21
With regard to future improvements in life expectancy, in the UK for example, males and females currently aged 45 are assumed to have a life
expectancy of 24 years and 26 years respectively on retirement at age 65.
Assumptions for the remaining defined benefit plans vary considerably, depending on the economic conditions of the countries where they
are situated.
Balance sheet
The assets, liabilities and surplus/(deficit) position of the pension and other post-employment benefit plans and the expected rates of return on
the plan assets at the balance sheet date were:
31 December 2009 31 December 2008 31 December 2007
€ million € million % € million € million % € million € million %
Other post- Long-term Other post- Long-term Other post- Long-term
employment rates of employment rates of employment rates of
Pension benefit return Pension benefit return Pension benefit return
plans plans expected plans plans expected plans plans expected
Assets of principal plans:
Equities 7,359 –7.9% 6,044 – 7.4% 9,957 – 8.0%
Bonds 4,040 –4.8% 3,244 – 4.7% 4,278 – 4.9%
Property 792 –6.4% 1,053 – 5.8% 1,381 – 6.6%
Other 1,867 –6.0% 1,069 – 5.4% 1,220 – 6.3%
Assets of other plans 348 7 7.9% 303 6 8.3% 404 13 7.5%
14,406 7 11,713 6 17,240 13
Present value of liabilities:
Principal plans (15,602) – (13,682) – (16,798) –
Other plans (744) (649) (682) (737) (748) (796)
(16,346) (649) (14,364) (737) (17,546) (796)
Aggregate net deficit of the plans (1,940) – (2,651) (731) (306) (783)
Irrecoverable surplus(a) ––––––
Pension liability net of assets (1,940) (642) (2,651) (731) (306) (783)
Of which in respect of:
Funded plans in surplus:
Liabilities (4,733) – – (3,600) – (12,396) –
Assets 5,492 – – 4,025 – 14,404 –
Aggregate surplus 759 – – 425 – 2,008 –
Irrecoverable surplus(a) ––––– ––
Pension asset net of liabilities 759 – – 425 – 2,008 –
Funded plans in deficit:
Liabilities (10,407) (33) – (9,484) (30) (3,627) (49)
Assets 8,914 7 – 7,688 6 2,836 13
Pension liability net of assets (1,493) (26) – (1,796) (24) (791) (36)
Unfunded plans:
Pension liability (1,206) (616) – (1,280) (707) (1,523) (747)
(a) A surplus is deemed recoverable to the extent that the Group is able to benefit economically from the surplus.