XML 137 R69.htm IDEA: XBRL DOCUMENT v3.20.1
Retirement benefit and other post-retirement obligations (Tables)
 12 Months Ended
Dec. 31, 2019
Text block [abstract]  
Summary of Defined Plan Analysis
At 31 December 2019, the UK Group plan had approximately 26,000 members, analysed in the following table:
 
All figures in %
  
Active
 
  
Deferred
 
  
Pensioners
 
  
Total
 
Defined benefit
  
 
—  
 
  
 
20
 
  
 
33
 
  
 
53
 
Defined contribution
  
 
12
 
  
 
35
 
  
 
—  
 
  
 
47
 
  
 
 
   
 
 
   
 
 
   
 
 
 
Total
  
 
12
 
  
 
55
 
  
 
33
 
  
 
100
 
  
 
 
   
 
 
   
 
 
   
 
 
 
Summary of Principal Assumptions Used for UK Group Plan and US PRMB
The principal assumptions used for the UK Group plan and the US PRMB are shown below. Weighted average assumptions have been shown for the other plans, which primarily relate to US pension plans.
 
 
 
2019
 
 
2018
 
All figures in %
 
UK Group
plan
 
 
Other
plans
 
 
PRMB
 
 
UK Group
plan
 
 
Other
plans
 
 
PRMB
 
Inflation
 
 
3.0
 
 
 
1.7
 
 
 
1.5
 
 
 
3.3
 
 
 
1.6
 
 
 
1.5
 
Rate used to discount plan liabilities
 
 
2.0
 
 
 
3.0
 
 
 
3.1
 
 
 
2.8
 
 
 
4.0
 
 
 
4.1
 
Expected rate of increase in salaries
 
 
3.5
 
 
 
2.9
 
 
 
3.0
 
 
 
3.8
 
 
 
2.9
 
 
 
3.0
 
Expected rate of increase for pensions in payment and deferred pensions
 
 
1.85 to 5.05
 
 
 
—  
 
 
 
—  
 
 
 
2.1 to 5.1
 
 
 
—  
 
 
 
—  
 
Initial rate of increase in healthcare rate
 
 
—  
 
 
 
—  
 
 
 
6.8
 
 
 
—  
 
 
 
—  
 
 
 
7.0
 
Ultimate rate of increase in healthcare rate
 
 
—  
 
 
 
—  
 
 
 
5.0
 
 
 
—  
 
 
 
—  
 
 
 
5.5
 
Summary of Remaining Average Life Expectancy in Years of Pensioner Retiring at Age 65
Using the above tables, the remaining average life expectancy in years of a pensioner retiring at age 65 on the balance sheet date for the UK Group plan and US plans is as follows:
 
 
  
UK
 
  
US
 
All figures in years
  
2019
 
  
2018
 
  
2019
 
  
2018
 
Male
  
 
24.0
 
  
 
23.8
 
  
 
20.6
 
  
 
20.7
 
Female
  
 
24.3
 
  
 
24.5
 
  
 
22.6
 
  
 
22.7
 
The remaining average life expectancy in years of a pensioner retiring at age 65, 20 years after the balance sheet date, for the UK and US Group plans is as follows:
 
 
  
UK
 
  
US
 
All figures in years
  
2019
 
  
2018
 
  
2019
 
  
2018
 
Male
  
 
25.5
 
  
 
25.4
 
  
 
22.2
 
  
 
22.3
 
Female
  
 
26.1
 
  
 
26.3
 
  
 
24.1
 
  
 
24.2
 
Summary of Amounts Recognised in Income Statement
The amounts recognised in the income statement are as follows:
 
 
  
2019
 
All figures in £ millions
  
UK
Group plan
 
 
Defined
benefit
other
 
 
Sub-total
 
 
Defined
contribution
 
  
PRMB
 
 
Total
 
Current service cost
  
 
6
 
 
 
3
 
 
 
9
 
 
 
57
 
  
 
—  
 
 
 
66
 
Past service cost
  
 
—  
 
 
 
—  
 
 
 
—  
 
 
 
—  
 
  
 
—  
 
 
 
—  
 
Curtailments
  
 
(2
) 
 
 
—  
 
 
 
(2
) 
 
 
—  
 
  
 
(1
) 
 
 
(3
) 
Administration expenses
  
 
6
 
 
 
—  
 
 
 
6
 
 
 
—  
 
  
 
—  
 
 
 
6
 
  
 
 
  
 
 
  
 
 
  
 
 
   
 
 
  
 
 
 
Total operating expense
  
 
10
 
 
 
3
 
 
 
13
 
 
 
57
 
  
 
(1
) 
 
 
69
 
Interest on plan assets
  
 
(89
) 
 
 
(5
) 
 
 
(94
) 
 
 
—  
 
  
 
—  
 
 
 
(94
) 
Interest on plan liabilities
  
 
73
 
 
 
6
 
 
 
79
 
 
 
—  
 
  
 
2
 
 
 
81
 
  
 
 
  
 
 
  
 
 
  
 
 
   
 
 
  
 
 
 
Net finance (income)/expense
  
 
(16
) 
 
 
1
 
 
 
(15
) 
 
 
—  
 
  
 
2
 
 
 
(13
) 
  
 
 
  
 
 
  
 
 
  
 
 
   
 
 
  
 
 
 
Net income statement charge
  
 
(6
) 
 
 
4
 
 
 
(2
) 
 
 
57
 
  
 
1
 
 
 
56
 
  
 
 
  
 
 
  
 
 
  
 
 
   
 
 
  
 
 
 
 
 
  
2018
 
All figures in £ millions
  
UK
Group plan
 
 
Defined
benefit
other
 
 
Sub-total
 
 
Defined
contribution
 
  
PRMB
 
 
Total
 
Current service cost
  
 
7
 
 
 
2
 
 
 
9
 
 
 
56
 
  
 
(1
) 
 
 
64
 
Past service cost
  
 
8
 
 
 
—  
 
 
 
8
 
 
 
—  
 
  
 
—  
 
 
 
8
 
Curtailments
  
 
—  
 
 
 
—  
 
 
 
—  
 
 
 
—  
 
  
 
(11
) 
 
 
(11
) 
Administration expenses
  
 
6
 
 
 
—  
 
 
 
6
 
 
 
—  
 
  
 
—  
 
 
 
6
 
  
 
 
  
 
 
  
 
 
  
 
 
   
 
 
  
 
 
 
Total operating expense
  
 
21
 
 
 
2
 
 
 
23
 
 
 
56
 
  
 
(12
) 
 
 
67
 
Interest on plan assets
  
 
(82
) 
 
 
(5
) 
 
 
(87
) 
 
 
—  
 
  
 
—  
 
 
 
(87
) 
Interest on plan liabilities
  
 
68
 
 
 
6
 
 
 
74
 
 
 
—  
 
  
 
2
 
 
 
76
 
  
 
 
  
 
 
  
 
 
  
 
 
   
 
 
  
 
 
 
Net finance (income)/expense
  
 
(14
) 
 
 
1
 
 
 
(13
) 
 
 
—  
 
  
 
2
 
 
 
(11
) 
  
 
 
  
 
 
  
 
 
  
 
 
   
 
 
  
 
 
 
Net income statement charge
  
 
7
 
 
 
3
 
 
 
10
 
 
 
56
 
  
 
(10
) 
 
 
56
 
  
 
 
  
 
 
  
 
 
  
 
 
   
 
 
  
 
 
 
 
 
  
2017
 
All figures in £ millions
  
UK Group
plan
 
 
Defined
benefit
other
 
 
Sub-total
 
 
Defined
contribution
 
  
PRMB
 
 
Total
 
Current service cost
  
 
8
 
 
 
1
 
 
 
9
 
 
 
57
 
  
 
(1
) 
 
 
65
 
Administration expenses
  
 
9
 
 
 
1
 
 
 
10
 
 
 
—  
 
  
 
—  
 
 
 
10
 
  
 
 
  
 
 
  
 
 
  
 
 
   
 
 
  
 
 
 
Total operating expense
  
 
17
 
 
 
2
 
 
 
19
 
 
 
57
 
  
 
  (1
) 
 
 
75
 
Interest on plan assets
  
 
  (84
) 
 
 
(5
) 
 
 
  (89
) 
 
 
—  
 
  
 
—  
 
 
 
  (89
) 
Interest on plan liabilities
  
 
77
 
 
 
7
 
 
 
84
 
 
 
—  
 
  
 
2
 
 
 
86
 
  
 
 
  
 
 
  
 
 
  
 
 
   
 
 
  
 
 
 
Net finance (income)/expense
  
 
(7
) 
 
 
2
 
 
 
(5
) 
 
 
—  
 
  
 
2
 
 
 
(3
) 
  
 
 
  
 
 
  
 
 
  
 
 
   
 
 
  
 
 
 
Net income statement charge
  
 
10
 
 
 
4
 
 
 
14
 
 
 
57
 
  
 
1
 
 
 
72
 
  
 
 
  
 
 
  
 
 
  
 
 
   
 
 
  
 
 
 
Summary of Amounts Recognised in Balance Sheet
The amounts recognised in the balance sheet are as follows:
 
 
 
2019
 
 
2018
 
All figures in £ millions
 
UK
Group plan
 
 
Other
funded plans
 
 
Other
unfunded
plans
 
 
Total
 
 
UK
Group plan
 
 
Other
funded plans
 
 
Other
unfunded
plans
 
 
Total
 
Fair value of plan assets
 
 
3,341
 
 
 
120
 
 
 
—  
 
 
 
3,461
 
 
 
3,240
 
 
 
141
 
 
 
—  
 
 
 
3,381
 
Present value of defined benefit obligation
 
 
(2,912
) 
 
 
(138
) 
 
 
(19
) 
 
 
(3,069
) 
 
 
(2,671
) 
 
 
(158
) 
 
 
(19
) 
 
 
(2,848
) 
 
 
 
  
 
 
  
 
 
  
 
 
  
 
 
  
 
 
  
 
 
  
 
 
 
Net pension asset/(liability)
 
 
429
 
 
 
(18
) 
 
 
(19
) 
 
 
392
 
 
 
569
 
 
 
(17
) 
 
 
(19
) 
 
 
533
 
Other post-retirement medical benefit obligation
 
 
 
 
 
(43
) 
 
 
 
 
 
(49
) 
Other pension accruals
 
 
 
 
 
(12
) 
 
 
 
 
 
(13
) 
    
 
 
     
 
 
 
Net retirement benefit asset
 
 
 
 
 
337
 
 
 
 
 
 
471
 
    
 
 
     
 
 
 
Analysed as:
 
 
 
 
 
 
 
 
Retirement benefit assets
 
 
 
 
 
429
 
 
 
 
 
 
571
 
Retirement benefit obligations
 
 
 
 
 
(92
) 
 
 
 
 
 
(100
) 
 
Summary of Gains (Losses) Recognised in Other Comprehensive Income
The following gains/(losses) have been recognised in other comprehensive income:
 
All figures in £ millions
  
2019
 
  
2018
 
  
2017
 
Amounts recognised for defined benefit plans
  
 
(148
) 
  
 
16
 
  
 
175
 
Amounts recognised for post-retirement medical benefit plans
  
 
3
 
  
 
6
 
  
 
—  
 
  
 
 
   
 
 
   
 
 
 
Total recognised in year
  
 
(145
) 
  
 
22
 
  
 
175
 
  
 
 
   
 
 
   
 
 
 
Summary of Fair Value of Plan Assets
The fair value of plan assets comprises the following:
 
 
  
2019
 
  
2018
 
All figures in %
  
UK Group
plan
 
  
Other
funded plans
 
  
Total
 
  
UK Group
plan
 
  
Other
funded plans
 
  
Total
 
Insurance
  
 
43
 
  
 
—  
 
  
 
43
 
  
 
28
 
  
 
1
 
  
 
29
 
Equities
  
 
1
 
  
 
1
 
  
 
2
 
  
 
1
 
  
 
1
 
  
 
2
 
Bonds
  
 
5
 
  
 
2
 
  
 
7
 
  
 
—  
 
  
 
2
 
  
 
2
 
Property
  
 
5
 
  
 
—  
 
  
 
5
 
  
 
7
 
  
 
—  
 
  
 
7
 
Pooled asset investment funds
  
 
30
 
  
 
—  
 
  
 
30
 
  
 
44
 
  
 
—  
 
  
 
44
 
Other
  
 
13
 
  
 
—  
 
  
 
13
 
  
 
16
 
  
 
—  
 
  
 
16
 
Summary of of Quoted and Non Quoted Market Price
The table below further disaggregates the plan assets into additional categories and those assets which have a quoted market price in an active market and those that do not:
 
  
2019
 
  
2018
 
All figures in %
  
Quoted
market price
 
  
No quoted
market price
 
  
Quoted
market price
 
  
No quoted
market price
 
Insurance
  
 
43
 
  
 
—  
 
  
 
29
 
  
 
—  
 
Non-UK
equities
  
 
—  
 
  
 
2
 
  
 
—  
 
  
 
2
 
Fixed-interest securities
  
 
7
 
  
 
—  
 
  
 
2
 
  
 
—  
 
Property
  
 
—  
 
  
 
5
 
  
 
—  
 
  
 
7
 
Pooled asset investment funds
  
 
30
 
  
 
—  
 
  
 
44
 
  
 
—  
 
Other
  
 
—  
 
  
 
13
 
  
 
—  
 
  
 
16
 
  
 
 
   
 
 
   
 
 
   
 
 
 
Total
  
 
80
 
  
 
20
 
  
 
75
 
  
 
25
 
  
 
 
   
 
 
   
 
 
   
 
 
 
Summary of Liquidity Profile of UK Group Plan Assets
The liquidity profile of the UK Group plan assets is as follows:
 
All figures in %
  
2019
 
  
2018
 
Liquid – call <1 month
  
 
37
 
  
 
51
 
Less liquid – call 1–3 months
  
 
—  
 
  
 
—  
 
Illiquid – call >3 months
  
 
63
 
  
 
49
 
Summary of Changes in Values of Plan Assets and Liabilities
Changes in the values of plan assets and liabilities of the retirement benefit plans are as follows:
 
 
 
2019
 
  
2018
 
All figures in £ millions
 
UK Group
plan
 
 
Other
plans
 
 
Total
 
  
UK Group
plan
 
 
Other
plans
 
 
Total
 
Fair value of plan assets
 
 
 
  
 
 
Opening fair value of plan assets
 
 
3,240
 
 
 
141
 
 
 
3,381
 
  
 
3,337
 
 
 
155
 
 
 
3,492
 
Exchange differences
 
 
—  
 
 
 
(5
) 
 
 
(5
) 
  
 
—  
 
 
 
4
 
 
 
4
 
Interest on plan assets
 
 
89
 
 
 
5
 
 
 
94
 
  
 
82
 
 
 
5
 
 
 
87
 
Return on plan assets excluding interest
 
 
133
 
 
 
13
 
 
 
146
 
  
 
(45
) 
 
 
(13
) 
 
 
(58
) 
Contributions by employer
 
 
3
 
 
 
2
 
 
 
5
 
  
 
6
 
 
 
1
 
 
 
7
 
Benefits paid
 
 
(124
) 
 
 
(16
) 
 
 
(140
) 
  
 
(140
) 
 
 
(11
) 
 
 
(151
) 
Other
 
 
—  
 
 
 
(20
) 
 
 
(20
) 
  
 
—  
 
 
 
—  
 
 
 
—  
 
 
 
 
  
 
 
  
 
 
   
 
 
  
 
 
  
 
 
 
Closing fair value of plan assets
 
 
3,341
 
 
 
120
 
 
 
3,461
 
  
 
3,240
 
 
 
141
 
 
 
3,381
 
 
 
 
  
 
 
  
 
 
   
 
 
  
 
 
  
 
 
 
Present value of defined benefit obligation
 
 
 
  
 
 
Opening defined benefit obligation
 
 
(2,671
) 
 
 
(177
) 
 
 
(2,848
) 
  
 
(2,792
) 
 
 
(181
) 
 
 
(2,973
) 
Exchange differences
 
 
—  
 
 
 
5
 
 
 
5
 
  
 
—  
 
 
 
(3
) 
 
 
(3
) 
Current service cost
 
 
(6
) 
 
 
(3
) 
 
 
(9
) 
  
 
(7
) 
 
 
(2
) 
 
 
(9
) 
Past service cost
 
 
—  
 
 
 
—  
 
 
 
—  
 
  
 
(8
) 
 
 
—  
 
 
 
(8
) 
Curtailments
 
 
2
 
 
 
—  
 
 
 
2
 
  
 
—  
 
 
 
—  
 
 
 
—  
 
Administration expenses
 
 
(6
) 
 
 
—  
 
 
 
(6
) 
  
 
(6
) 
 
 
—  
 
 
 
(6
) 
Interest on plan liabilities
 
 
(73
) 
 
 
(6
) 
 
 
(79
) 
  
 
(68
) 
 
 
(6
) 
 
 
(74
) 
Actuarial gains/(losses) – experience
 
 
(6
) 
 
 
(1
) 
 
 
(7
) 
  
 
(49
) 
 
 
(2
) 
 
 
(51
) 
Actuarial gains/(losses) – demographic
 
 
18
 
 
 
1
 
 
 
19
 
  
 
(12
) 
 
 
—  
 
 
 
(12
) 
Actuarial gains/(losses) – financial
 
 
(294
) 
 
 
(12
) 
 
 
(306
) 
  
 
131
 
 
 
6
 
 
 
137
 
Contributions by employee
 
 
—  
 
 
 
—  
 
 
 
—  
 
  
 
—  
 
 
 
—  
 
 
 
—  
 
Other
 
 
—  
 
 
 
20
 
 
 
20
 
  
 
—  
 
 
 
—  
 
 
 
—  
 
Benefits paid
 
 
124
 
 
 
16
 
 
 
140
 
  
 
140
 
 
 
11
 
 
 
151
 
 
 
 
  
 
 
  
 
 
   
 
 
  
 
 
  
 
 
 
Closing defined benefit obligation
 
 
(2,912
) 
 
 
(157
) 
 
 
(3,069
) 
  
 
(2,671
) 
 
 
(177
) 
 
 
(2,848
) 
 
 
 
  
 
 
  
 
 
   
 
 
  
 
 
  
 
 
 
Summary of Changes in Value of US PRMB
Changes in the value of the US PRMB are as follows:
 
All figures in £ millions
  
2019
 
    
2018
 
Opening defined benefit obligation
  
 
(49
) 
    
 
(67
) 
Exchange differences
  
 
1
 
    
 
(2
) 
Current service cost
  
 
—  
 
    
 
1
 
Curtailments
  
 
1
 
    
 
11
 
Interest on plan liabilities
  
 
(2
) 
    
 
(2
) 
Actuarial gains/(losses) – experience
  
 
4
 
    
 
4
 
Actuarial gains/(losses) – demographic
  
 
1
 
    
 
—  
 
Actuarial gains/(losses) – financial
  
 
(2
) 
    
 
2
 
Benefits paid
  
 
3
 
    
 
4
 
  
 
 
     
 
 
 
Closing defined benefit obligation
  
 
(43
) 
    
 
(49
) 
  
 
 
     
 
 
 
Summary of Effect Percentage of Discount Rate Increase (Decrease) on Defined Benefit Obligation and Total Pension Expense
The effect of a one percentage point increase and decrease in the discount rate on the defined benefit obligation and the total pension expense is as follows:
 
 
  
2019
 
All figures in £ millions
  
1%
increase
 
  
1%
decrease
 
Effect:
  
 
                
 
  
 
                
 
(Decrease)/increase in defined benefit obligation – UK Group plan
  
 
(434
) 
  
 
591
 
(Decrease)/increase in defined benefit obligation – US plan
  
 
(11
) 
  
 
13
 
The effect of members living one year more or one year less on the defined benefit obligation is as follows:
 
 
  
2019
 
All figures in £ millions
  
One year
increase
 
  
One year
decrease
 
Effect:
  
 
                
 
  
 
                
 
Increase/(decrease) in defined benefit obligation – UK Group plan
  
 
132
 
  
 
(126
) 
Increase/(decrease) in defined benefit obligation – US plan
  
 
8
 
  
 
(8
) 
 
The effect of a half percentage point increase and decrease in the inflation rate is as follows:
 
 
  
2019
 
All figures in £ millions
  
0.5%
increase
 
  
0.5%
decrease
 
Effect:
  
  
Increase/(decrease) in defined benefit obligation – UK Group plan
  
 
153
 
  
 
(136
) 
Increase/(decrease) in defined benefit obligation – US plan
  
 
—  
 
  
 
—