Note 16: Detailed Information - People Costs continued Movements in accrued benefits and assets During the financial year the value of accrued benefits increased by $176m, mainly attributable to: • Service costs charged to the profit or loss of $59m; • Interest costs of $32m, from the discount rate on benefit obligations and anticipated benefit payments; • Employee contributions of $28m; • Actuarial adjustments, generating an increase in accrued benefits of $153m; • Offsetting these movements were decreases from: – Benefits paid by the plans of $80m; – Favourable foreign currency movements of $16m taken directly to the FCTR. During the financial year, plan assets increased by $110m, mainly attributable to: • Employer and employee contributions of $78m and investment returns that increased plan assets by $85m; • Favourable asset ceiling movements of $25m. • Offsetting these movements were decreases from: – Benefits paid by the plans of $73m; – Unfavourable foreign currency movements of $5m taken directly to the FCTR; 2024 2023 The major categories of total plan assets are as follows: US$m US$m Cash 27 9 Instruments quoted in active markets: Equity instruments 619 551 Bonds 356 354 Unquoted investments - property 342 341 Other assets 99 103 Asset ceiling adjustment (150) (175) Total Plan Assets 1,293 1,183 The actuarial assumptions, expressed as weighted averages, at the reporting dates are: 2024 2023 % % Discount rate 1.8 % 2.3% Future salary increases 2.2 % 2.7% Future pension increases 0.4 % 0.3% The variable with the most significant impact on the defined benefit obligation is the discount rate applied in the calculation of accrued benefits. A decrease in the average discount rate applied to the calculation of accrued benefits of 0.25% would increase the defined benefit obligation by $46m. An increase in the average discount rate of 0.25% would reduce the defined benefit obligation by $47m. The defined benefit obligation will be discharged over an extended period as members exit the plans. The plan actuaries have estimated that the following payments will be required to satisfy the obligation. The actual payments will depend on the pattern of employee exits from the Group’s plans. 2024 2023 Estimated defined benefit plan payments (actuarial assumption) as at 30 June: US$m US$m Within one year 86 76 Between two and five years 340 293 Between five and ten years 434 360 Beyond ten years 697 652 138 Notes to the Financial Statements Limited Annual Report 2023/24
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