Pension and Other Employee Benefits (Tables)

12 Months Ended

Dec. 31, 2022

Defined Benefit Pension Plans [Member]

Disclosure Of Defined Benefit Plans [Line Items]

Summary of Changes in Present Value of Defined Benefit Obligations, Fair Value of Plan Assets and Components of Net Periodic Benefit Costs

PLDT’s actuarial valuation is performed every year-end. Based on the latest actuarial valuation, the actual present value of accrued (prepaid) benefit costs, net periodic benefit costs and average assumptions used in developing the valuation as at and for the years ended December 31, 2022, 2021 and 2020 are as follows:

	2022				2021			2020
				(in million pesos)
Changes in the present value of defined benefit obligations:
Present value of defined benefit obligations at beginning of the year		22,298				28,197			22,638
Interest costs on benefit obligation		1,173				922			1,056
Service costs		1,093				1,614			1,313
Actuarial losses on obligations – experience		78				538			265
Actual benefits paid/settlements		(102	)			(3,471	)		(369	)
Actuarial losses on obligations – economic assumptions		(3,972	)			(5,502	)		3,507
Curtailment and others		(4,685	)			—			(213	)
Present value of defined benefit obligations at end of the year		15,883				22,298			28,197
Changes in fair value of plan assets:
Fair value of plan assets at beginning of the year		14,683				15,000			13,724
Actual contributions		6,359				3,614			3,227
Interest income on plan assets		983				605			322
Return on plan assets (excluding amount included in net interest)		—				(1,065	)		(1,904	)
Actual gain on plan assets		(421	)			—			—
Actual benefits paid/settlements		(5,313	)			(3,471	)		(369	)
Fair value of plan assets at end of the year		16,291				14,683			15,000
Unfunded status – net		408				(7,615	)		(13,197	)
Accrued benefit costs		482				7,760			13,342
Prepaid benefit costs (Note 19)		890				145			145
Components of net periodic benefit costs:
Service costs		1,093				1,614			1,313
Interest costs - net		190				317			734
Curtailment/settlement gains and other adjustments		261				—			(99	)
Net periodic benefit costs (Note 5)		1,544				1,931			1,948

Summary of Expected Future Settlements

The following table sets forth the expected future settlements by the Plan of maturing defined benefit obligation as at December 31, 2022:

	(in million pesos)
2023		261
2024		317
2025		433
2026		826
2027		1,077
2028 to 2032		11,904

Summary of Weighted Average Assumptions Used to Determine Pension Benefits

The weighted average assumptions used to determine pension benefits for the years ended December 31, 2022, 2021 and 2020 are as follows:

	2022			2021			2020
Rate of increase in compensation		5.7	%		5.7	%		6.0	%
Discount rate		7.3	%		5.3	%		3.5	%

Summary of Sensitivity Analysis on Defined Benefit Obligation

The sensitivity analysis below has been determined based on reasonably possible changes of each significant assumption on the defined benefit obligation as at December 31, 2022 and 2021, assuming if all other assumptions were held constant:

	Increase (Decrease)
	(in million pesos)
Discount rate	1%	(14,223	)
	(1%)	17,579
Future salary increases	1%	17,587
	(1%)	(4,189	)

Summary of Plan Assets

The following table sets forth the fair values, which are equal to the carrying values, of PLDT’s plan assets recognized as at December 31, 2022 and 2021:

	2022				2021
				(in million pesos)
Noncurrent Financial Assets
Investments in:
Unquoted equity investments		13,509				11,332
Shares of stock		1,913				2,316
Corporate bonds		318				242
Mutual funds		7				7
Government securities		129				17
Total noncurrent financial assets		15,876				13,914
Current Financial Assets
Cash and cash equivalents		410				518
Receivables		8				5
Total current financial assets		418				523
Total PLDT’s Plan Assets		16,294				14,437
Subsidiaries Plan Assets		(3	)			246
Total Plan Assets of Defined Benefit Pension Plans		16,291				14,683

Defined Benefit Pension Plans [Member] | Shares of Stocks [Member]

Disclosure Of Defined Benefit Plans [Line Items]

Summary of Plan Assets

As at December 31, 2022 and 2021, this account consists of:

	2022			2021
			(in million pesos)
Common shares
PSE		1,054			1,401
PLDT		35			48
Others		464			507
Preferred shares		360			360
		1,913			2,316

Defined Benefit Pension Plans [Member] | Unlisted Equity Investments [Member]

Disclosure Of Defined Benefit Plans [Line Items]

Summary of Plan Assets

Unquoted Equity Investments

As at December 31, 2022 and 2021, this account consists of:

	2022			2021			2022			2021
	Percentage of Ownership								(in million pesos)
MediaQuest		100	%		100	%		12,634			10,508
Tahanan Mutual Building and Loan Association, Inc.,    or TMBLA, (net of subscriptions payable of    Php32 million)		100	%		100	%		625			584
BTFHI		100	%		100	%		250			240
								13,509			11,332

Defined Benefit Pension Plans [Member] | Investment Property [Member]

Disclosure Of Defined Benefit Plans [Line Items]

Summary of Allocation of Fair Value of Plan Assets

The allocation of the fair value of the assets for the PLDT pension plan as at December 31, 2022 and 2021 are as follows:

	2022			2021
Investments in listed and unlisted equity securities		95	%		94	%
Temporary cash investments		2	%		4	%
Debt and fixed income securities		2	%		2	%
Mutual funds		1	%		—
		100	%		100	%

Defined Contribution Plans [Member]

Disclosure Of Defined Benefit Plans [Line Items]

Summary of Changes in Present Value of Defined Benefit Obligations, Fair Value of Plan Assets and Components of Net Periodic Benefit Costs

Smart’s and certain of its subsidiaries’ actuarial valuation is performed every year-end. Based on the latest actuarial valuation, the actual present value of prepaid benefit costs, net periodic benefit costs and average assumptions used in developing the valuation as at and for the years ended December 31, 2022, 2021 and 2020 are as follows:

	2022				2021			2020
				(in million pesos)
Changes in the present value of defined benefit obligations:
Present value of defined benefit obligations at beginning of the year		3,264				2,775			2,813
Service costs		262				313			294
Interest costs on benefit obligation		156				101			118
Actuarial losses – economic assumptions		(20	)			(40	)		28
Actuarial losses – experience		(216	)			12			69
Actual benefits paid/settlements		(396	)			—			(567	)
Curtailment and others		(273	)			103			20
Present value of defined benefit obligations at end of the year		2,777				3,264			2,775
Changes in fair value of plan assets:
Fair value of plan assets at beginning of the year		4,137				3,651			3,084
Actual contributions		299				306			282
Interest income on plan assets		213				132			142
Return on plan assets (excluding amount included in net interest)		(322	)			(18	)		143
Actual benefits paid/settlements		(842	)			—			—
Others		—				66			—
Fair value of plan assets at end of the year		3,485				4,137			3,651
Funded status – net		708				873			876
Prepaid benefit costs (Note 19)		708				873			876
Components of net periodic benefit costs:
Service costs		262				313			294
Interest costs - net		(57	)			(31	)		(24	)
Curtailment/settlement gains and other adjustments		—				—			—
Net periodic benefit costs (Note 5)		205				282			270

Summary of Expected Future Settlements

The following table sets forth the expected future settlements by the Plan of maturing defined benefit obligation as at December 31, 2022:

	(in million pesos)
2023		81
2024		143
2025		142
2026		210
2027		216
2028 to 2062		2,163

Summary of Weighted Average Assumptions Used to Determine Pension Benefits

The weighted average assumptions used to determine pension benefits for the years ended December 31, 2022, 2021 and 2020 are as follows:

	2022			2021			2020
Rate of increase in compensation		5.0	%		5.0	%		5.0	%
Discount rate		7.3	%		5.0	%		3.5	%

Summary of Sensitivity Analysis on Defined Benefit Obligation

The sensitivity analysis below has been determined based on reasonably possible changes of each significant assumption on the defined benefit obligation as at December 31, 2021 and 2020, assuming if all other assumptions were held constant:

	Increase (Decrease)
	(in million pesos)
Discount rate	(0.1%)	(4	)
	0.2%	614
Future salary increases	0.2%	614
	(0.1%)	(4	)

Summary of Plan Assets

The following table sets forth the fair values, which are equal to the carrying values, of Smart’s plan assets recognized as at December 31, 2022 and 2021:

	2022			2021
			(in million pesos)
Noncurrent Financial Assets
Investments in:
Domestic fixed income		2,152			2,833
Domestic equities		676			997
International fixed income		222			558
Philippine foreign currency bonds		220			224
International equities		—			844
Total noncurrent financial assets		3,270			5,456
Current Financial Assets
Cash and cash equivalents		1,411			37
Total current financial assets		1,411			37
Total plan assets		4,681			5,493
Less: Employee’s share, forfeitures and mandatory reserve account		1,196			1,356
Total Plan Assets of Defined Contribution Plans		3,485			4,137

Summary of Allocation of Fair Value of Plan Assets

The allocation of the fair value of Smart and certain of its subsidiaries pension plan assets as at December 31, 2022 and 2021 are as follows:

	2022			2021
Investments in debt and fixed income securities and others		86	%		67	%
Investments in listed and unlisted equity securities		14	%		33	%
		100	%		100	%