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21. Pension obligations

The Group has one defined benefit pension plan in India, including the whole personnel of the Indian subsidiary. The pension plan constitute the obligatory pension and termination benefits for the employees, and the amount of the plan benefit is based on final salary and number of years in service.



EUR 1,000 2017 2016



Defined benefit liability in the balance sheet:
Present value of funded obligations 859 988
Fair value of plan assets (-)
-58
Net liability (+) / net asset (-) in the balance sheet 859 930



Recociliation of the changes in balance sheet

Net liability (+) / net asset (-) in the balance sheet in the beginning of the period 930 735
Pension expense recognised in profit and loss 196 199
Remeasurement items recognised in other comprehensive income -105 59
Translation differences -163 -63
Net liability (+) / net asset (-) in the balance sheet at the end of the period 859 930



Defined benefit expense in profit and loss
Current service cost 136 146
Interest income (-) and expense (+), net 60 53
Pension expense recognised in profit and loss (note 5) 196 199



Change in the defined benefit obligation:
Defined benefit obligation in the beginning of the period 988 877
Current service cost 136 146
Interest cost 55 65
Remeasurement items:

Gains (-) / losses (+) arising from changes in demographical assumptions

Actuarial gains (-) / losses (+) arising from changes in financial assumptions -6 61
Gains (-) / losses (+) arising from experience adjustments -97 5
Translation differences -65 5
Benefits paid (-) -147 -172
Defined benefit obligation at the end of the period 865 988



Change in plan assets:
Plan assets in the beginning of the period 57 142
Interest income 4 11
Remeasurement items:

Return on plan assets excluding amounts included in interest income (+/-) -3 5
Translation differences -4 1
Payments from the plan: 92 70
Benefits paid (-) -147 -172
Plan assets at the end of the period 0 57







2017 2016



Actuarial assumptions at the reporting date % %
Discount rate 6.9 6.6
Future salary increases, first year 8.0 8.0
Future salary increases, thereafter 8.0 8.0



Assumed normal retirement age is 60 years. The turnover of the employees is assumed to decline evenly in line with the growing age, being 1 % for over 55 year olds and 15 % for under 30 year olds. Assumptions concerning mortality are made in accordance with the actuary's instructions and they are based on statistics and experience.


There is no information available on plan assets because they are commonly invested by the incurance company.



Sensitivity analysis




The sensitivity analysed below is calculated all other factors remaining unchanged.


2017




Change in discount rate, percentage points +1% -1%
Impact on the defined benefit obligation, EUR 1,000 -240 -198



Change in future salary increases, percentage points +1% -1%
Impact on the defined benefit obligation, EUR 1,000 -199 -240






2016




Change in discount rate, percentage points +1% -1%
Impact on the defined benefit obligation, EUR 1,000 -43 47



Change in future salary increases, percentage points +1% -1%
Impact on the defined benefit obligation, EUR 1,000 36 33