Pension and Other Employee Benefits (Tables)

12 Months Ended

Dec. 31, 2019

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, 2019, 2018 and 2017:

	2019			2018			2017
	(in million pesos)
Changes in the present value of defined benefit obligations:
Present value of defined benefit obligations at beginning of the year		20,683			21,503			23,142
Actuarial losses (gains) on obligations – economic assumptions		3,829			(2,611	)		(1,277	)
Interest costs on benefit obligation		1,338			1,227			1,180
Service costs		1,043			1,063			1,158
Actuarial losses on obligations – experience		570			419			423
Actuarial losses on obligations – demographic assumptions		4			—			—
Actual benefits paid/settlements		(4,558	)		(887	)		(2,723	)
Curtailments and others (Note 5)		(271	)		(31	)		(400	)
Present value of defined benefit obligations at end of the year		22,638			20,683			21,503
Changes in fair value of plan assets:
Fair value of plan assets at beginning of the year		13,539			12,534			11,960
Actual contributions		7,598			5,110			5,122
Interest income on plan assets		1,360			770			641
Return on plan assets (excluding amount included in net interest)		(4,215	)		(3,988	)		(2,466	)
Actual benefits paid/settlements		(4,558	)		(887	)		(2,723	)
Fair value of plan assets at end of the year		13,724			13,539			12,534
Unfunded status – net		(8,914	)		(7,144	)		(8,969	)
Accrued benefit costs		8,985			7,159			8,984
Prepaid benefit costs (Note 19)		71			15			15
Components of net periodic benefit costs:
Service costs		1,043			1,063			1,158
Interest costs – net		(22	)		457			539
Curtailment/settlement losses (gains) and other adjustments		(181	)		21			(341	)
Net periodic benefit costs (Note 5)		840			1,541			1,356

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, 2019:

	(in million pesos)
2020		644
2021		362
2022		377
2023		620
2024		1,011
2025 to 2065		128,008

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, 2019, 2018 and 2017 are as follows:

	2019			2018			2017
Rate of increase in compensation		6.0	%		6.0	%		6.0	%
Discount rate		4.8	%		7.3	%		5.8	%

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, 2019, assuming if all other assumptions were held constant:

	Increase (Decrease)
	(in million pesos)
Discount rate	1%	(2,216	)
	(1%)	2,809
Future salary increases	1%	2,747
	(1%)	(2,216	)

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, 2019 and 2018:

	2019		2018
	(in million pesos)
Noncurrent Financial Assets
Investments in:
Unquoted equity investments		10,815		10,707
Shares of stock		2,077		2,066
Corporate bonds		145		133
Government securities		22		31
Mutual funds		9		4
Total noncurrent financial assets		13,068		12,941
Current Financial Assets
Cash and cash equivalents		441		499
Receivables		8		8
Total current financial assets		449		507
Total PLDT’s Plan Assets		13,517		13,448
Subsidiaries Plan Assets		207		91
Total Plan Assets of Defined Benefit Pension Plans		13,724		13,539

Defined Benefit Pension Plans [member] | Shares of stock [Member]

Disclosure Of Defined Benefit Plans [Line Items]

Summary of Plan Assets

As at December 31, 2019 and 2018, this account consists of:

	2019		2018
	(in million pesos)
Common shares
PSE		1,161		1,185
PLDT		26		30
Others		530		491
Preferred shares		360		360
		2,077		2,066

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

Disclosure Of Defined Benefit Plans [Line Items]

Summary of Plan Assets

As at December 31, 2019 and 2018, this account consists of:

	2019			2018			2019		2018
	% of Ownership						(in million pesos)
MediaQuest		100	%		100	%		10,050		10,022
Tahanan Mutual Building and Loan Association, Inc.,    or TMBLA, (net of subscriptions payable of    Php32 million)		100	%		100	%		544		474
BTFHI		100	%		100	%		221		211
Superior Multi Parañaque Homes, Inc., or SMPHI		—			—			—		—
Bancholders, Inc., or Bancholders		—			—			—		—
								10,815		10,707

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, 2019 and 2018 are as follows:

	2019			2018
Investments in listed and unlisted equity securities		96	%		95	%
Temporary cash investments		3	%		4	%
Debt and fixed income securities		1	%		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, 2019, 2018 and 2017 are as follows:

	2019			2018		2017
	(in million pesos)
Changes in the present value of defined benefit obligations:
Present value of defined benefit obligations at beginning of the year		2,804			2,490		2,177
Service costs		239			314		269
Interest costs on benefit obligation		174			—		113
Actuarial losses (gains) – experience		100			—		(6	)
Actuarial losses – economic assumptions		13			—		29
Actual benefits paid/settlements		(37	)		—		(92	)
Curtailment and others		(480	)		—		—
Present value of defined benefit obligations at end of the year		2,813			2,804		2,490
Changes in fair value of plan assets:
Fair value of plan assets at beginning of the year		3,159			2,862		2,414
Actual contributions		281			297		335
Interest income on plan assets		190			—		131
Return on plan assets (excluding amount included in net interest)		100			—		74
Actual benefits paid/settlements		(37	)		—		(92	)
Others		(609	)		—		—
Fair value of plan assets at end of the year		3,084			3,159		2,862
Funded status – net		271			355		372
Accrued benefit costs		—			23		13
Prepaid benefit costs (Note 19)		271			378		385
Components of net periodic benefit costs:
Service costs		239			314		269
Curtailment/settlement gain		(6	)		—		—
Interest income		(16	)		—		—
Others		(39	)		—		(18	)
Net periodic benefit costs (Note 5)		178			314		251

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, 2019:

	(in million pesos)
2020		523
2021		101
2022		100
2023		113
2024		153
2025 to 2060		1,295

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, 2019, 2018 and 2017 are as follows:

	2019			2018			2017
Rate of increase in compensation		5.0	%		7.3	%		5.0	%
Discount rate		7.3	%		6.0	%		5.8	%

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, 2019, assuming if all other assumptions were held constant:

	Increase (Decrease)
	(in million pesos)
Discount rate	(0.27%)	(8	)
	0.74%	21
Future salary increases	0.72%	20
	(0.27%)	(8	)

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, 2019 and 2018:

	2019		2018
	(in million pesos)
Noncurrent Financial Assets
Investments in:
Domestic fixed income		1,993		1,854
International equities		1,114		550
Domestic equities		649		333
Philippine foreign currency bonds		516		165
International fixed income		142		—
Total noncurrent financial assets		4,414		2,902
Current Financial Assets
Cash and cash equivalents		32		891
Receivables		2		1
Total current financial assets		34		892
Total plan assets		4,448		3,794
Less:  Employee’s share, forfeitures and mandatory reserve account		1,364		635
Total Plan Assets of Defined Contribution Plans		3,084		3,159

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, 2019 and 2018 is as follows:

	2019			2018
Investments in debt and fixed income securities and others		60	%		77	%
Investments in listed and unlisted equity securities		40	%		23	%
		100	%		100	%