2021 Universal Registration Document
5 2021 CONSOLIDATED FINANCIAL STATEMENTS Notes to the consolidated financial statements
Change in pension assets and liabilities in the United Kingdom b. In the United Kingdom, net liabilities arising from post-employment defined-benefit plans reflect the net value of benefit obligations and the plan assets covering them. Changes in these assets and liabilities broke down as follows:
31/12/2021
31/12/2020
(in millions of euros)
Present value of the obligation at the beginning of the period
1,851.3
1,779.2
Changes in scope
-
-
Translation adjustments
129.2
-97.2
Current service cost
4.8
4.2
Past service cost
-
-
Interest
26.8
34.6
Employee contributions
-
-
Effect of obligation remeasurements
21.4 28.9 10.6 -18.1
203.0
Experience adjustments p
-5.1 -2.9
Impact of changes in demographic assumptions p Impact of changes in financial assumptions p
211.0
Plan amendments
- -
- -
Transfers
Benefits provided
-63.8
-72.4
PRESENT VALUE OF THE OBLIGATION AT THE END OF THE PERIOD
1,969.8
1,851.3
Fair value of plan assets at the beginning of the period
1,703.9
1,643.5
Changes in scope
-
-
Translation adjustments
121.0
-89.7 32.2 160.9 168.3
Interest
24.8 84.2 91.8 -7.6 34.5
Effects of plan asset remeasurements
Return on plan assets (excluding amounts included in interest income) p
Impact of changes in financial assumptions p
-7.4 29.5
Employer contributions Employee contributions
- -
- -
Transfers
Benefits provided
-63.8
-72.4
FAIR VALUE OF PLAN ASSETS AT THE END OF THE PERIOD
1,904.6
1,703.9
The decrease in net liabilities was mainly the result of the increase in the discount rate and the improvement in the return on plan assets, which offset the adverse effect of higher inflation. UK pension fund assets fall into four investment categories:
31/12/2021
31/12/2020
(in millions of euros)
Shares
285.0
319.8
Bonds/Private placements
1,068.0
1,043.8
Infrastructure and property assets
268.4 283.2
241.4
Other assets
98.9
TOTAL
1,904.6
1,703.9
Other assets mainly comprised cash and cash equivalents at 31 December 2021. The discount rate used for employee obligations is based on the return on AA bonds in line with the duration of the liabilities rounded to the nearest hundredth. In the United Kingdom, the benchmark used is the Mercer yield curve. A 0.25-point decrease in the discount rate would increase the benefit obligation by 89.1 million. A 0.25-point increase in the
discount rate would reduce the benefit obligation by 84.0 million. A 10% reduction in the value of the assets would reduce their amount by 190.5 million, whereas a 10% increase would increase their amount by 190.5 million. These sensitivity estimates are made on the basis of all other things being equal. At 31 December 2021, two plans were in a net asset position, totalling 20.4 million. These assets are deemed recoverable through a future decrease in contributions.
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SOPRA STERIA UNIVERSAL REGISTRATION DOCUMENT 2021
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