The funded status of the pension plans at the end of Q1 2013 was a deficit of €0.6 billion (year-end 2012: €1.1 billion as reported, €0.9 billion on restated basis).
The movement compared with year-end 2012 is primarily due to:
- Changes in accounting standard IAS 19 (effective 1 January 2013) by €183 million.
- Top-up payments of €287 million into certain UK, US and Canadian defined benefit pension plans.
- Asset returns exceeding expected credits taken to the statement of income, increasing the pension plan assets and decreasing the deficit.
- Higher inflation in the UK, increasing the pension obligation and deficit.