PLDT’s actuarial valuation is performed every year-end. Based on the latest actuarial valuation, the actual present value of prepaid benefit costs, net periodic benefit costs and average assumptions used in developing the valuation as at and for the years ended December 31, 2017, 2016 and 2015 are as follows:
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|
2017 |
|
|
2016 |
|
|
2015 |
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|
|
|
(in million pesos) |
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|
Changes in the present value of defined benefit obligations: |
|
|
|
|
|
|
|
|
|
|
|
|
|
Present value of defined benefit obligations at beginning of the year |
|
|
23,142 |
|
|
|
21,602 |
|
|
|
23,072 |
|
|
Interest costs on benefit obligation |
|
|
1,180 |
|
|
|
1,071 |
|
|
|
1,050 |
|
|
Service costs |
|
|
1,158 |
|
|
|
1,066 |
|
|
|
1,113 |
|
|
Actuarial losses – experience |
|
|
423 |
|
|
|
369 |
|
|
|
3 |
|
|
Actuarial gains – economic assumptions |
|
|
(1,277 |
) |
|
|
(694 |
) |
|
|
(1,414 |
) |
|
Actual benefits paid/settlements |
|
|
(2,723 |
) |
|
|
(241 |
) |
|
|
(2,112 |
) |
|
Curtailments and others (Note 5) |
|
|
(400 |
) |
|
|
(31 |
) |
|
|
(110 |
) |
|
Present value of defined benefit obligations at end of the year |
|
|
21,503 |
|
|
|
23,142 |
|
|
|
21,602 |
|
|
Changes in fair value of plan assets: |
|
|
|
|
|
|
|
|
|
|
|
|
|
Fair value of plan assets at beginning of the year |
|
|
11,960 |
|
|
|
11,439 |
|
|
|
9,950 |
|
|
Actual contributions |
|
|
5,122 |
|
|
|
5,708 |
|
|
|
7,086 |
|
|
Interest income on plan assets |
|
|
641 |
|
|
|
600 |
|
|
|
519 |
|
|
Return on plan assets (excluding amount included in net interest) |
|
|
(2,466 |
) |
|
|
(5,546 |
) |
|
|
(4,004 |
) |
|
Actual benefits paid/settlements |
|
|
(2,723 |
) |
|
|
(241 |
) |
|
|
(2,112 |
) |
|
Fair value of plan assets at end of the year |
|
|
12,534 |
|
|
|
11,960 |
|
|
|
11,439 |
|
|
Unfunded status – net |
|
|
(8,969 |
) |
|
|
(11,182 |
) |
|
|
(10,163 |
) |
|
Accrued benefit costs |
|
|
8,984 |
|
|
|
11,197 |
|
|
|
10,178 |
|
|
Prepaid benefit costs (Note 19) |
|
|
15 |
|
|
|
15 |
|
|
|
15 |
|
|
Components of net periodic benefit costs: |
|
|
|
|
|
|
|
|
|
|
|
|
|
Service costs |
|
|
1,158 |
|
|
|
1,066 |
|
|
|
1,113 |
|
|
Interest costs – net |
|
|
539 |
|
|
|
471 |
|
|
|
531 |
|
|
Curtailment/settlement losses and other adjustments |
|
|
(341 |
) |
|
|
— |
|
|
|
(29 |
) |
|
Net periodic benefit costs (Note 5) |
|
|
1,356 |
|
|
|
1,537 |
|
|
|
1,615 |
|