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Unilever Group Notes to the consolidated accounts
32 Pension and other benefit plans (continued)
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Fl. million
11100000511
Pension plans Other benefits plans
£ 01111101111 01111101111
1999 1998 1999 1998
0000000000111101111 01111 01111 01111
Amount recognised in the statement of financial position consists of:
Prepaid benefit cost 1 159 1 193 — —
Accrued benefit liability (1 815) (1 730) (1 801) (1 561)
Additional minimum liability (28) (12) — —
Intangible asset 18 9 — —
Accumulated other comprehensive income 14 3 4 —
01111 01111 01111 01111
Net amount recognised at end of year (652) (537) (1 797) (1 561)
01111 01111 01111 01111
(a) From 1998, two additional plans were included in the pension exercise and one additional plan in the other benefit plans.
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Pension plans Other benefits plans
% %
01111101111101111 01111101111101111
1999 1998 1997 1999 1998 1997
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Weighted-average assumptions as of 31 December
Discount rate 6.25 5.50 6.75 7.50 6.00 6.50
Expected return on plan assets 7.25 6.75 7.25 n/a n/a n/a
Rate of salary increases 3.75 3.50 4.00 4.50 4.50 5.00
Cost of living increases 2.50 2.25 2.50 n/a n/a n/a
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The valuations of other benefit plans typically assume that medical cost inflation will fall from its current level of approximately 8.5%
over the next few years and reach a constant level of approximately 5% by the year 2006.
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Fl. million
11100000000511
Pension plans Other benefits plans
01111101111101111 01111101111101111
1999 1998 1997 1999 1998 1997
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Components of net periodic benefit cost
Service cost 478 398 420 30 30 22
Interest cost 1 141 1 207 1 232 99 95 89
Expected return on plan assets (1 505) (1 539) (1 502) — — —
Employee contributions — — — — (3) —
Amortisation of prior service cost 54 53 48 — — —
Amortisation of transition (asset) (140) (142) (143) — — —
Amortisation of actuarial loss/(gain) (10) (122) (10) — 3 —
01111 01111 01111 0111 01111 01111
Total before FAS 88 events 18 (145) 45 129 125 111
Adjustments for FAS 88 events 47 115 (366) — 30 (159)
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Net periodic benefit cost 65 (30) (321) 129 155 (48)
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The projected benefit obligation, accumulated benefit obligation, and fair value of plan assets for the pension plans with accumulated
benefit obligations in excess of plan assets were Fl. 1 914 million, Fl. 1 666 million, and Fl. 78 million respectively, as of 31 December
1999 and Fl. 2 089 million, Fl. 1 814 million, and Fl. 81 million respectively, as of 31 December 1998.
The Group also maintains a number of smaller defined benefit plans. Approximately Fl. 3 095 million (1998: Fl. 2 660 million) is
provided for on their behalf in the Group balance sheet. In 1999 Fl. 287 million (1998: Fl. 191 million; 1997: Fl. 312 million) was
charged in the accounts. These amounts, mainly in connection with unfunded plans, would not have been materially different under
SFAS 87.
In addition to the special terminations benefits mentioned in the table above, during 1999, the Group also charged Fl. 64 million
(1998: Fl. 92 million; 1997: Fl. 111 million) in respect of pension or similar obligations arising on terminations of employment.
Post-retirement health care benefits
Assumed health care cost trend rates have a significant effect on the amounts reported for the health care plans. A one-percentagepoint
change in assumed health care cost trend rates would have the following effects:
1% point 1% point
increase decrease
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Effect on total of service and interest cost components 3 (2)
Effect on post-retirement benefit obligation 30 (28)
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