The report contains 2004 pension assumption data for 356 companies in 25 countries. 82% of the survey participants report under FAS 87 Employers' Accounting for Pensions
; 11% under IAS 19 Employee Benefits
; 6% under FRS 17 Retirement Benefits
(UK and Ireland); and the remaining 1% percent under other national standards. The US retirement plan data on FAS 87 assumptions is derived from information reported in corporate annual reports. The non-US information was collected using a survey form. The report includes tables showing by country, among other things:
- Background economic data - Bond yields and CPI+.
- Discount rates are used to calculate the present value of pension obligations and the service and interest
cost portion of pension expense.
- Expected rates of return on assets.
- Salary increase assumptions.
- Spread between the average discount rate and salary increase by country.
- Estimated social security increase, in those countries where the plan formula takes into account social security.
- Estimated pension increases, in those countries where either pensions are required to increase or there is a substantive commitment to provide increases.
- Whether pension assets are measured at 'market value' or 'market-related value' (the latter reflecting a smoothing of the value of assets over a period up to five years).
- Average asset allocation.
- Funded status based on projected benefits and also accumulated benefits.
The report may be purchased from www.watsonwyatt.com
then click 'Research' then 'Research Reports'.