XML 87 R69.htm IDEA: XBRL DOCUMENT v3.22.1
Retirement benefit and other post-retirement obligations (Tables)
 12 Months Ended
Dec. 31, 2021
Text block [abstract]  
Summary of Defined Plan Analysis
At 31 December 2021, the UK Group plan had approximately 26,500 members, analysed in the following table:
 
All figures in%
   
Active
     
Deferred
     
Pensioners
     
Total
  
Defined benefit
   
 
—  
 
   
 
18
 
   
 
33
 
   
 
51
 
Defined contribution
   
 
11
 
   
 
38
 
   
 
—  
 
   
 
49
 
    
 
 
     
 
 
     
 
 
     
 
 
  
Total
   
 
11
 
   
 
56
 
   
 
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.
 
    
2021
    
2020
    
2019
  
  
 
 
    
 
 
    
 
 
    
 
 
    
 
 
    
 
 
    
 
 
  
All figures in %
   
UK Group
plan
     
Other

plans
     
PRMB
    
UK Group
plan
    
Other

plans
    
PRMB
    
UK Group
plan
    
Other

plans
    
PRMB
  
Inflation
   
 
3.3
 
   
 
1.4
 
   
 
—  
 
     2.9       0.6       —         3.0       1.7       1.5  
Rate used to discount plan liabilities
   
 
1.9
 
   
 
2.8
 
   
 
2.6
 
     1.4       2.2       2.1       2.0       3.0       3.1  
Expected rate of increase in salaries
   
 
3.8
 
   
 
2.7
 
   
 
—  
 
     3.4       2.2       —         3.5       2.9       3.0  
Expected rate of increase for pensions in payment and deferred pensions
   
 
2.35 to 5.10
 
   
 
—  
 
   
 
—  
 
     2.05 to 5.05       —         —         1.85 to 5.05       —         —    
Initial rate of increase in healthcare rate
   
 
—  
 
   
 
—  
 
   
 
6.3
 
     —         —         6.5       —         —         6.8  
Ultimate rate of increase in healthcare rate
   
 
—  
 
   
 
—  
 
   
 
5.0
 
     —         —         5.0       —         —         5.0  
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
   
2021
     
2020
     
2021
     
2020
  
Male
   
 
22.6
 
      24.0     
 
20.5
 
      20.4  
Female
   
 
24.8
 
      24.3     
 
22.5
 
      22.4  
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
   
2021
     
2020
     
2021
     
2020
  
Male
   
 
24.2
 
   
 
25.6
 
   
 
22.0
 
   
 
21.9
 
Female
   
 
26.5
 
   
 
26.1
 
   
 
23.9
 
   
 
23.8
 
Summary of Amounts Recognised in Income Statement
The amounts recognised in the income statement are as follows:
 
    
2021
  
All figures in £ millions
   
UK
Group plan
    
Defined
benefit
other
    
Sub-total
    
Defined

contribution
     
PRMB
     
Total
  
Current service cost
   
 
17
 
  
 
2
 
  
 
19
 
  
 
37
 
   
 
—  
 
   
 
56
 
Past service cost
   
 
—  
 
  
 
—  
 
  
 
—  
 
  
 
—  
 
   
 
—  
 
   
 
—  
 
Curtailments
   
 
—  
 
  
 
—  
 
  
 
—  
 
  
 
—  
 
   
 
—  
 
   
 
—  
 
Administration expenses
   
 
6
 
  
 
—  
 
  
 
6
 
  
 
—  
 
   
 
—  
 
   
 
6
 
  
 
 
    
 
 
    
 
 
    
 
 
     
 
 
     
 
 
  
Total operating expense
   
 
23
 
  
 
2
 
  
 
25
 
  
 
37
 
   
 
—  
 
   
 
62
 
Interest on plan assets
   
 
(55
) 
  
 
(2
) 
  
 
(57
) 
  
 
—  
 
   
 
—  
 
   
 
(57
) 
Interest on plan liabilities
   
 
49
 
  
 
3
 
  
 
52
 
  
 
—  
 
   
 
1
 
   
 
53
 
  
 
 
    
 
 
    
 
 
    
 
 
     
 
 
     
 
 
  
Net finance (income)/expense
   
 
(6
) 
  
 
1
 
  
 
(5
) 
  
 
—  
 
   
 
1
 
   
 
(4
) 
  
 
 
    
 
 
    
 
 
    
 
 
     
 
 
     
 
 
  
Net income statement charge
   
 
17
 
  
 
3
 
  
 
20
 
  
 
37
 
   
 
1
 
   
 
58
 
  
 
 
    
 
 
    
 
 
    
 
 
     
 
 
     
 
 
  
 
    
2020
  
All figures in £ millions
   
UK
Group plan
    
Defined
benefit
other
    
Sub-total
    
Defined

contribution
     
PRMB
     
Total
  
Current service cost
      6       2       8       47        —          55  
Past service cost
      1       —         1       —          —          1  
Curtailments
      —         (1 )      (1 )      —          —          (1 ) 
Administration expenses
      5       —         5       —          —          5  
  
 
 
    
 
 
    
 
 
    
 
 
     
 
 
     
 
 
  
Total operating expense
      12       1       13       47        —          60  
Interest on plan assets
      (66 )      (3 )      (69 )      —          —          (69 ) 
Interest on plan liabilities
      57       5       62       —          1        63  
  
 
 
    
 
 
    
 
 
    
 
 
     
 
 
     
 
 
  
Net finance (income)/expense
      (9 )      2       (7 )      —          1        (6 ) 
  
 
 
    
 
 
    
 
 
    
 
 
     
 
 
     
 
 
  
Net income statement charge
      3       3       6       47        1        54  
  
 
 
    
 
 
    
 
 
    
 
 
     
 
 
     
 
 
  
 
    
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  
  
 
 
    
 
 
    
 
 
    
 
 
     
 
 
    
 
 
  
Summary of Amounts Recognised in Balance Sheet
The amounts recognised in the balance sheet are as follows:
 
   
2021
    
2020
  
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
  
 
4,125
 
  
 
120
 
  
 
—  
 
  
 
4,245
 
     3,588       119       —         3,707  
Present value of defined benefit obligation
  
 
(3,588
) 
  
 
(123
) 
  
 
(20
) 
  
 
(3,731
) 
     (3,178 )      (135 )      (21 )      (3,334 ) 
 
 
 
    
 
 
    
 
 
    
 
 
    
 
 
    
 
 
    
 
 
    
 
 
  
Net pension asset/(liability)
  
 
537
 
  
 
(3
) 
  
 
(20
) 
  
 
514
 
     410       (16 )      (21 )      373  
Other post-retirement medical benefit obligation
        
 
(34
) 
           (39 ) 
Other pension accruals
        
 
(9
) 
           (9 ) 
       
 
 
          
 
 
  
Net retirement benefit asset
        
 
471
 
           325  
       
 
 
          
 
 
  
Analysed as:
                
Retirement benefit assets
        
 
537
 
           410  
Retirement benefit obligations
        
 
(66
) 
           (85 ) 
Summary of Gains (Losses) Recognised in Other Comprehensive Income
The following gains/(losses) have been recognised in other comprehensive income:
 
All figures in £ millions
   
2021
     
2020
     
2019
  
Amounts recognised for defined benefit plans
      145        (24 )       (148 ) 
Amounts recognised for post-retirement medical benefit plans
      4        1        3  
  
 
 
     
 
 
     
 
 
  
Total recognised in year
   
 
149
 
   
 
(23
) 
   
 
(145
) 
  
 
 
     
 
 
     
 
 
  
Summary of Fair Value of Plan Assets
The fair value of plan assets comprises the following:
 
    
2021
     
2020
  
  
 
 
     
 
 
  
All figures in %
   
UK Group
plan
     
Other
funded plans
     
Total
     
UK Group
plan
     
Other
funded plans
     
Total
  
Insurance
   
 
35
 
   
 
—  
 
   
 
35
 
      42        —          42  
Equities
   
 
11
 
   
 
1
 
   
 
12
 
      1        1        2  
Fixed interest securities
   
 
7
 
   
 
2
 
   
 
9
 
      5        1        6  
Property
   
 
5
 
   
 
—  
 
   
 
5
 
      5        —          5  
Pooled asset investment funds
   
 
30
 
   
 
—  
 
   
 
30
 
      34        —          34  
Other
   
 
9
 
   
 
—  
 
   
 
9
 
      11        —          11  
Summary of Quoted and Non Quoted Market Price
The plan assets do not include any of the Group’s own financial instruments, or any property occupied by the Group. The table below further disaggregates the plan assets into those assets which have a quoted market price in an active market and those that do not:
 
    
2021
     
2020
  
  
 
 
     
 
 
  
All figures in %
   
Quoted

market price
     
No quoted

market price
     
Quoted

market price
     
No quoted

market price
  
Insurance
   
 
35
 
   
 
—  
 
      42        —    
Equities
   
 
11
 
   
 
1
 
      —          2  
Fixed-interest securities
   
 
9
 
   
 
—  
 
      6        —    
Property
   
 
—  
 
   
 
5
 
      —          5  
Pooled asset investment funds
   
 
30
 
   
 
—  
 
      34        —    
Other
   
 
—  
 
   
 
9
 
      —          11  
  
 
 
     
 
 
     
 
 
     
 
 
  
Total
   
 
85
 
   
 
15
 
      82        18  
  
 
 
     
 
 
     
 
 
     
 
 
  
Summary of Liquidity Profile of UK Group Plan Assets
The liquidity profile of the UK Group plan assets is as follows:
 
All figures in %
   
2021
     
2020
  
Liquid – call <1 month
   
 
51
 
      39  
Less liquid – call 1–3 months
   
 
—  
 
      —    
Illiquid – call >3 months
   
 
49
 
      61  
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:
 
All figures in £ millions
  
2021
     
2020
  
 
UK Group
plan
    
Other

plans
    
Total
     
UK Group
plan
    
Other

plans
    
Total
  
Fair value of plan assets
             
Opening fair value of plan assets
  
 
3,588
 
  
 
119
 
  
 
3,707
 
      3,341       120       3,461  
Recognition of Money Purchase assets
  
 
513
 
  
 
—  
 
  
 
513
 
      —         —         —    
Exchange differences
  
 
—  
 
  
 
2
 
  
 
2
 
      —         (3 )      (3 ) 
Interest on plan assets
  
 
55
 
  
 
2
 
  
 
57
 
      66       3       69  
Return on plan assets excluding interest
  
 
71
 
  
 
6
 
  
 
77
 
      297       8       305  
Contributions by employer
  
 
14
 
  
 
1
 
  
 
15
 
      3       5       8  
Benefits paid
  
 
(123
) 
  
 
(10
) 
  
 
(133
) 
      (119 )      (14 )      (133 ) 
Contributions by employees
  
 
7
 
  
 
—  
 
  
 
7
 
      —         —         —    
 
 
 
    
 
 
    
 
 
     
 
 
    
 
 
    
 
 
  
Closing fair value of plan assets
  
 
4,125
 
  
 
120
 
  
 
4,245
 
      3,588       119       3,707  
 
 
 
    
 
 
    
 
 
     
 
 
    
 
 
    
 
 
  
Present value of defined benefit obligation
             
Opening defined benefit obligation
  
 
(3,178
) 
  
 
(156
) 
  
 
(3,334
) 
      (2,912 )      (157 )      (3,069 ) 
Recognition of Money Purchase liabilities
  
 
(513
) 
  
 
—  
 
  
 
(513
) 
      —         —         —    
Exchange differences
  
 
—  
 
  
 
(1
) 
  
 
(1
) 
      —         3       3  
Current service cost
  
 
(17
) 
  
 
(2
) 
  
 
(19
) 
      (6 )      (2 )      (8 ) 
Past service cost
  
 
—  
 
  
 
—  
 
  
 
—  
 
      (1 )      —         (1 ) 
Curtailments
  
 
—  
 
  
 
—  
 
  
 
—  
 
      —         1       1  
Administration expenses
  
 
(6
) 
  
 
—  
 
  
 
(6
) 
      (5 )      —         (5 ) 
Interest on plan liabilities
  
 
(49
) 
  
 
(3
) 
  
 
(52
) 
      (57 )      (5 )      (62 ) 
Actuarial (losses)/gains – experience
  
 
(100
) 
  
 
3
 
  
 
(97
) 
      (18 )      (2 )      (20 ) 
Actuarial (losses)/gains – demographic
  
 
(1
) 
  
 
—  
 
  
 
(1
) 
      1       1       2  
Actuarial gains/(losses) – financial
  
 
160
 
  
 
6
 
  
 
166
 
      (299 )      (11 )      (310 ) 
Contributions by employee
  
 
(7
) 
  
 
—  
 
  
 
(7
) 
      —         2       2  
Benefits paid
  
 
123
 
  
 
10
 
  
 
133
 
      119       14       133  
 
 
 
    
 
 
    
 
 
     
 
 
    
 
 
    
 
 
  
Closing defined benefit obligation
  
 
(3,588
) 
  
 
(143
) 
  
 
(3,731
) 
      (3,178 )      (156 )      (3,334 ) 
 
 
 
    
 
 
    
 
 
     
 
 
    
 
 
    
 
 
  
Summary of Changes in Value of US PRMB
Changes in the value of the US PRMB are as follows:
 
All figures in £ millions
   
2021
       
2020
  
Opening defined benefit obligation
   
 
(39
) 
        (43 ) 
Exchange differences
   
 
(1
) 
        1  
Interest on plan liabilities
   
 
(1
) 
        (1 ) 
Actuarial gains – experience
   
 
2
 
        3  
Actuarial gains – demographic
   
 
—  
 
        1  
Actuarial gains/(losses) – financial
   
 
2
 
        (3 ) 
Benefits paid
   
 
3
 
        3  
    
 
 
       
 
 
  
Closing defined benefit obligation
   
 
(34
) 
        (39 ) 
    
 
 
       
 
 
  
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:
 
    
2021
  
  
 
 
  
All figures in £ millions
   
1%
increase
     
1%
decrease
  
Effect:
   
 
                
 
   
 
                
 
(Decrease)/increase in defined benefit obligation – UK Group plan
   
 
(450
) 
   
 
616
 
(Decrease)/increase in defined benefit obligation – US plan
   
 
(9
) 
   
 
11
 
                   
The effect of members living one year more or one year less on the defined benefit obligation is as follows:
 
    
2021
  
  
 
 
  
All figures in £ millions
   
One year
increase
     
One year
decrease
  
Effect:
   
 
                
 
   
 
                
 
Increase/(decrease) in defined benefit obligation – UK Group plan
   
 
107
 
   
 
(108
) 
Increase/(decrease) in defined benefit obligation – US plan
   
 
4
 
   
 
(3
) 
                   
The effect of a half percentage point increase and decrease in the inflation rate is as follows:
 
    
2021
  
  
 
 
  
All figures in £ millions
   
0.5%
increase
     
0.5%
decrease
  
Effect:
                  
Increase/(decrease) in defined benefit obligation – UK Group plan
   
 
142
 
   
 
(141
) 
Increase/(decrease) in defined benefit obligation – US plan
   
 
—  
 
   
 
—