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Retirement benefit obligations (Tables)

12 Months Ended

Dec. 31, 2023

Retirement benefit obligations

Schedule of assumptions used for the RIPS


		31 December		31 December
		2023		2022
Weighted average %
Discount rate		3.5	%	4.2	%
Future salary increases		n/a		n/a
Future pension increases		2.3	%	2.6	%
Inflation		2.3	%	2.6	%

Schedule of movement in the net defined benefit obligation


				Fair						Fair
		Present		value of				Present		value of
		value of		plan				value of		plan
		obligation		assets		Total		obligation		assets		Total
		2023		2023		2023		2022		2022		2022
		£m		£m		£m		£m		£m		£m
At 1 January		(65)		38		(27)		(1,313)		1,305		(8)
Current service costs¹		(1)		—		(1)		(2)		—		(2)
Past service costs¹		—		—		—		(1)		—		(1)
Settlement gain		—		—		—		4		—		4
Transfer of RIPS annuity policies (buy-out)		—		—		—		1,159		(1,159)		—
Administration expenses¹		—		—		—		4		(4)		—
Interest on defined benefit obligation/asset¹		(2)		1		(1)		(5)		5		—
Exchange difference		2		(1)		1		(3)		2		(1)
Total pension income/(expense)		(1)		—		(1)		1,156		(1,156)		—
Remeasurements:
– Remeasurement gain/(loss) on scheme assets		—		—		—		—		(79)		(79)
– Remeasurement gain/(loss) on obligation²		—		—		—		81		—		81
Contributions:
– Employers		(1)		2		1		(1)		—		(1)
– Benefit payments		7		(5)		2		12		(10)		2
– Refund of surplus		—		—		—		—		(22)		(22)
At 31 December		(60)		35		(25)		(65)		38		(27)

Retirement benefit obligation schemes³		(44)		16		(28)		(49)		19		(30)
Retirement benefit asset schemes⁴		(16)		19		3		(16)		19		3

1.	Service costs and administration expenses are charged to operating expenses, and interest cost and return on plan assets to finance cost and finance income.

2.

The actuarial movement on the UK scheme comprises remeasurement gain arising from changes in demographic assumptions of £nil (2022: £nil), remeasurement gain arising from changes in financial assumptions of £nil (2022: gain of £82m), and a remeasurement loss arising from experience of £nil (2022: loss of £7m).

3.	Benefit plans in an obligation position include plans situated in Thailand, the UK, Martinique, Trinidad and Tobago, Norway, South Africa, Germany, Austria, France, Italy, South Korea, Philippines, India, Sri Lanka, Hong Kong, and Saudi Arabia.

4.	Benefit plans in an asset position include plans situated in Australia, Barbados, and Ireland.

Schedule of analysis of fair value of plan assets


		2023		2022
		£m		£m
Equity instruments		2		2
Debt instruments – unquoted		15		15
Property		1		—
Other		17		21
Total plan assets		35		38