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4B PENSIONS AND SIMILAR OBLIGATIONS ONTINUED
The actual return on plan assets durng 2014 was 2,096 mllon, beng the sum of 1,316 mllon and 780 mllon from the table above
(2013:€1,594 million).
The duration of the principal defined benefit liabilities at 31 December 2014 is between 9 and 19 years (2013: 9 and 17 years).
Theliabilities are split between different categories of plan participants as follows:
• active members 19.6% (2013: 19.1%)
• deferred members 23.1% (2013: 21%)
• retired members 57.3% (2013: 59.9%)
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 2014
€ million
31 December 2013
Penson
plans
Other post-
employment
beneft
plans
Pension
plans
Other post-
employment
benefit
plans
Total Assets 20,466 18 18,313 6
Equities Total 8,336 – 7,38 3 –
– Europe 2,957 – 2,904 –
– North America 3,086 – 2,433 –
– Other 2,293 – 2,046 –
Fixed Income Total 8,864 17 7,075 5
– Government bonds 4,637 17 3,541 2
– Investment grade corporate bonds 2,749 2,336 –
– Other fixed income 1,478 – 1,198 3
Derivatives (1,182) – 18 –
Private Equity 762 – 706 –
Property and Real Estate 1,384 – 1,230 –
Hedge Funds 1,050 – 936 –
Other 962 1 693 1
Other plans 290 – 272 –
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 €71 million (0.3% of total plan assets) and €67 million (0.4% of total plan
assets) at 31 December 2014 and 2013 respectively. Property includes property occupied by Unilever amounting to €15 million at
31 December 2014 and 2013.
The pension assets above exclude the assets in a Special Benefits Trust amounting to €86 million (2013: €84 million) to fund pension
and similar liabilities in the United States (see also note 17A on page 120).
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 +4%
Long-term medical cost inflation(b) Increase by 10% +1%
An equivalent decrease in each assumption would have an equal and opposite impact on liabilities.
(b) Long-term medical cost inflation only relates to post retirement medical plans.
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.
97Unilever Annual Report and Accounts 2014 Financial statements