The funded status of the pension plans at the end of Q1 2014 was a deficit of €1.1 billion (year-end 2013: €0.6 billion).
The movement compared with year-end 2013 is primarily due to:
- De-risking the pension liabilities in the UK, giving rise to a loss of €0.8 billion which is recorded in other comprehensive income. More details of this transaction are provided in the press release of March 26, 2014 on our website
- Lower discount rates in all key countries
- Top-up payments of €297 million into certain UK defined benefit pension plans
- Asset returns above credits taken to the statement of income
- Lower inflation in the UK
Other effects of de-risking the pension liabilities in the UK were an increase of €58 million of the pension liabilities as well as a decrease of noncurrent financial assets of €715 million. The pension asset increased in Q1 2014 mostly as a consequence of top-up payments.