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Unilever Group Notes to the consolidated accounts
32 Pension and other benefit plans (continued)
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In 1999 the Group received a gross cash refund of Fl. 350 million from a Netherlands fund in a surplus position, and Fl. 237 million
from a Finnish fund in surplus. These cash refunds do not directly impact the pension charge for 1999 as the surplus is amortised in
accordance with the Group’s accounting policies. Further refunds from these funds may occur in 2000.
The Group also operates a number of defined contribution plans. The assets of all the Group’s defined contribution plans are held in
independently administered funds. The pension costs charged to the profit and loss account represent contributions payable by the
Group to the funds. The market value of the assets of externally funded defined contribution plans as at 31 December 1999 was
Fl. 3 931 million (1998: Fl. 3 378 million).
Group companies provide other post-retirement benefits (mainly post-retirement medical benefit plans) to a number of retired
employees in certain countries, principally the United States, under several different plans which are predominantly unfunded.
The post-retirement, other than pension, plans operated by the Group are accounted for in accordance with SFAS 106.
US GAAP accounting:
The following tables summarises the balance sheet impact, as well as the benefit obligations, assets, funded status and economic
assumptions associated with the key defined benefit pension plans and the other benefit plans as computed in accordance with
SFAS 87 and SFAS 106. At 31 December 1999 these pension plans represented approximately 79% (1998: 76%; 1997: 71%) of all
pension plans while 100% of the other benefit plans are represented (1998: 100%; 1997: 100%), based on the market value of the
funds plus the provisions held in the Group’s accounts.
Fl. million
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Pension plans Other benefits plans
£ 01111101111 01111101111
1999 1998 1999 1998
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Change in benefit obligation
Benefit obligations beginning of year 20 446 16 964 1 573 1 458
Extension of coverage (a) — 1 011 — —
Service cost 478 398 30 30
Interest cost 1 141 1 207 100 95
Plan member contributions — — — —
Amendments — 3 — 7
Plan mergers — — — —
Actuarial (gains)/losses (702) 3 138 157 122
Acquisition/disposals — 76 — 30
Settlements/curtailments (37) (250) 3 1
Special Termination benefits 37 72 — —
Benefits paid (1 341) (1 164) (110) (63)
Currency retranslations 1 922 (1 009) 215 (106)
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Benefit obligations end of year 21 944 20 446 1 968 1 574
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Change in plan assets
Fair value of plan assets at beginning of year 23 549 22 094 6 —
Extension of coverage (a) — 1 608 — —
Actual return on plan assets 6 151 2 447 — —
Acquisition/(disposals) — 69 — —
Settlements (40) (250) — —
Employer contribution/surplus refunds (151) (59) 110 66
Plan member contributions — — — 3
Benefits paid (1 341) (1 164) (110) (63)
Currency retranslations 2 326 (1 196) 1 —
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Fair value of plan assets at end of year 30 494 23 549 7 6
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Funded status at end of year 8 551 3 103 (1 641) (1 567)
Unrecognised net transition liability/(asset) (826) (809) — —
Unrecognised net actuarial loss/(gain) (8 774) (3 166) (135) 32
Unrecognised prior service cost 397 335 7 (1)
Other (FAS 112 liabilities) n/a n/a (28) (25)
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Net amount recognised at end of year (652) (537) (1 797) (1 561)
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