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4B. PENSIONS AND SIMILAR OBLIGATIONS CONTINUED
For the most important pension plans, representing approximately 83% of all defined benefit plans liabilities, the assumptions used at
31 December 2013 and 2012 were:
Unted Kngdom Netherlands Unted States ermany
2013 2012 2013 2012 2013 2012 2013 2012
Discount rate 45% 4.3% 35% 3.1% 47% 3.8% 35% 3.1%
Inflation 33% 2.6% 18% 1.7% 23% 2.3% 18% 1.7%
Rate of increase in salaries 36% 3.6% 23% 2.2% 30% 3.5% 28% 2.8%
Rate of increase for pensions in payment
(where provided) 31% 2.5% 18% 1.7% ––18% 1.7%
Rate of increase for pensions in deferment
(where provided) 32% 2.6% 18% 1.7% ––––
Number of years a current pensioner is
expected to live beyond age 65:
Men 223 21.7 220 22.0 205 19.5 194 19.4
Women 244 23.6 236 23.5 228 21.5 230 23.0
Number of years a future pensioner currently
aged 45 is expected to live beyond age 65:
Men 236 23.5 236 23.7 226 20.7 194 19.4
Women 261 25.2 246 24.5 248 22.7 230 23.0
Demographic assumptions, such as mortality rates, are set having regard to the latest trends in life expectancy (including expectations
of future improvements), plan experience and other relevant data. These assumptions are reviewed and updated as necessary as part
of the periodic actuarial valuation of the pension plans. The years of life expectancy for 2013 above have been translated from the
following tables:
• UK: the year of use S1 series all pensioners (‘S1PA’) tables have been adopted, which are based on the experience of UK pension
schemes over the period 2000-2006. Scaling factors are applied reflecting the experience of our pension funds appropriate to the
member’s gender and status. Future improvements in longevity have been allowed for in line with the 2012 CMI Core projections and
a 1% pa long-term improvement rate.
• The Netherlands: the Dutch Actuarial Society’s AG Prognosetafel 2012-2062 table is used with correction factors to allow for the
typically longer life expectancy for fund members relative to the general population. This table has an in-built allowance for future
improvements in longevity.
• United States: the table RP-2000 with generational mortality improvement using scale BB. This table has an in-built allowance for
future improvements in longevity.
• Germany: fund specific tables are used which broadly equate to the Heubeck 2005 generational table projected to 2030.
Assumptions for the remaining defined benefit plans vary considerably, depending on the economic conditions of the countries where
they are situated.
INOME STATEMENT
The charge to the income statement comprises:
Notes
 mllon
2013
€ million
2012
(Restated)
€ million
2011
(Restated)
Charged to operating profit:
Defined benefit pension and other benefit plans:
Current service cost (301) (290) (265)
Employee contributions 18 18 15
Special termination benefits (18) (17) (31)
Past service cost including (losses)/gains on curtailments 89 47 338
Settlements –– 3
Defined contribution plans (121) (116) (90)
Total operating cost 4A (333) (358) (30)
Finance income/(cost) 5(133) (145) (95)
Net impact on the income statement (before tax) (466) (503) (125)
SINIFIANT ITEMS ON THE FAE OF THE INOME STATEMENT
Included in the 2011 balance are a past service credit of €153 million, as Unilever implemented amendments to certain constructive
obligations in the UK that the company had the discretion to amend, and curtailment credits of €146 million relating to benefit changes
mainly in the UK, the USA and Canada.
101
Unlever Annual Report and Accounts 2013 Fnancal statements