Unilever 2013 Annual Report Download - page 106

4B. PENSIONS AND SIMILAR OBLIGATIONS CONTINUED
The actual return on plan assets during 2013 was €1,594 million, being the sum of €934 million and €660 million from the table above
(2012:€2,118 million).
The duration of the principal defined benefit liabilities at 31 December 2013 is between 9 and 17 years (2012: 10 and 17 years).
Theliabilities are split between different categories of plan participants as follows:
• active members 19.1% (2012: 21.3%)
• deferred members 21% (2012: 19.4%)
• retired members 59.9% (2012: 59.3%)
ASSETS
The fair value of plan assets at the end of the reporting period for our major and principal plans for each category are as follows:
 mllon
31 December 2013
€ million
31 December 2012
(Restated)
Penson
plans
Other post-
employment
beneft
plans
Pension
plans
Other post-
employment
benefit
plans
Total Assets 18,313 617,665 8
Equities Total 7,383 –7,491 1
– Europe 2,904 –3,016 –
– North America 2,433 –2,375 –
– Other 2,046 –2,100 1
Fixed Income Total 7,075 56,070 6
– Government bonds 3,541 23,081 –
– Investment grade Corporate bonds 2,336 –2,201 –
– Other Fixed Income 1,198 3788 6
Derivatives 18 –430 –
Private Equity 706 –686 –
Property and Real Estate 1,230 –1,132 –
Hedge Funds 936 –852 –
Other 693 1574 1
Other plans 272 –430 –
The fair values of the above equity and fixed income instruments are determined based on quoted market prices in active markets.
Thefair value of private equity, properties, derivatives and hedge funds are not based on quoted market prices in active markets. The
Group uses swaps to hedge some of its exposure to inflation and interest rate risk. Foreign currency exposures in part are also hedged
by the use of forward foreign exchange contracts. Assets included in the Other category are commodities, cash and insurance
contracts which are also unquoted assets.
Equity securities include Unilever securities amounting to €67 million (0.4% of total plan assets) and €32 million (0.2% of total plan
assets) at 31 December 2013 and 2012 respectively. Property includes property occupied by Unilever amounting to €15 million and
€16million at 31 December 2013 and 2012 respectively.
The pension assets above exclude the assets in a Special Benefits Trust amounting to €84 million (2012: €98 million) to fund pension
and similar liabilities in the US (see also note 17A on page 126).
SENSITIVITIES
The sensitivity of the overall pension liabilities to changes in the weighted key assumptions are:
hange n assumpton hange n labltes
Discount rate Increase by 05% -7%
Inflation rate Increase by 05% +5%
Life expectancy Increase by 1 year +3%
Long-term medical cost inflation Increase by 10% +1%
An equivalent decrease in each assumption would have an equal and opposite impact on liabilities.
The sensitivity analyses above have been determined based on reasonably possible changes of the respective assumptions occurring at
the end of the reporting period and may not be representative of the actual change. It is based on a change in the key assumption while
holding all other assumptions constant. When calculating the sensitivity to the assumption, the same method used to calculate the
liability recognised in the balance sheet has been applied. The methods and types of assumptions used in preparing the sensitivity
analysis did not change compared with the previous period.
103
Unlever Annual Report and Accounts 2013 Fnancal statements