Note 17: Detailed Information - People Costs continued Movements in accrued benefits and plan assets During the financial year, accrued benefits increased by $322m, mainly attributable to: • Service costs charged to the profit or loss of $59m; • Interest costs of $31m, from the discount rate on benefit obligations and anticipated benefit payments; • Employee contributions of $29m; • Actuarial adjustments, generating an increase in accrued benefits of $61m; • Unfavourable foreign currency movements of $196m; • Partly offsetting the above accrued benefit increases were benefits paid from the plans of $54m. During the financial year, plan assets increased by $367m, mainly attributable to: • Employer and employee contributions of $82m and investment returns of $77m that collectively increased plan assets; • Favourable asset ceiling movements of $83m; • Favourable foreign currency movements of $175m; • Partly offsetting the above plan asset increases were benefits paid from the plans of $50m. 2025 2024 The major categories of total plan assets are as follows: US$m US$m Cash 43 27 Instruments quoted in active markets: Equity instruments 727 619 Bonds 409 356 Unquoted investments - property 441 342 Other assets 121 99 Asset ceiling adjustment (81) (150) Total Plan Assets 1,660 1,293 The actuarial assumptions, expressed as weighted averages, at the reporting dates are: 2025 2024 % % Discount rate 1.7 % 1.8% Future salary increases 2.1 % 2.2% Future pension increases 0.3 % 0.4% 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 $64m. An increase in the average discount rate of 0.25% would reduce the defined benefit obligation by $59m. The defined benefit obligation will be discharged over an extended period as members exit the plans. The plan actuaries have estimated that the following payments will be required to satisfy the obligation. The actual payments will depend on the pattern of employee exits from the Group’s plans. 2025 2024 Estimated defined benefit plan payments (actuarial assumption) as at 30 June: US$m US$m Within one year 102 86 Between two and five years 408 340 Between five and ten years 510 434 Beyond ten years 859 697 122 Notes to the Financial Statements 122 Financial Report
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