Skip to main content (Press Enter)
-

20. 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 2020 2019
     
Defined benefit liability in the balance sheet:    
Present value of funded obligations 810 765
Fair value of plan assets (-)    
Net liability (+) / net asset (-) in the balance sheet 810 765
     
Recociliation of the changes in balance sheet    
Net liability (+) / net asset (-) in the balance sheet in the beginning of the period 789 743
Pension expense recognised in profit and loss 123 136
Remeasurement items recognised in other comprehensive income 32 77
Translation differences -133 -167
Net liability (+) / net asset (-) in the balance sheet at the end of the period 811 789
     
Defined benefit expense in profit and loss    
Current service cost 86 92
Interest income (-) and expense (+), net 37 45
Pension expense recognised in profit and loss (note 5) 124 136
     
Change in the defined benefit obligation:    
Defined benefit obligation in the beginning of the period 789 743
Current service cost 86 92
Interest cost 37 45
Remeasurement items:    
Gains (-) / losses (+) arising from changes in demographical assumptions   0
Actuarial gains (-) / losses (+) arising from changes in financial assumptions -165 62
Gains (-) / losses (+) arising from experience adjustments 198 16
Translation differences -83 -4
Benefits paid (-) -51 -164
Defined benefit obligation at the end of the period 811 789
     
Change in plan assets:    
Plan assets in the beginning of the period 24 1
Interest income 1 0
Remeasurement items:    
Return on plan assets excluding amounts included in interest income (+/-) 0 1
Translation differences -3 -0
Payments from the plan: 46 186
Benefits paid (-) -51 -164
Plan assets at the end of the period 18 24
     
  2020 2019
Actuarial assumptions at the reporting date % %
Discount rate 6.1 6.2
Future salary increases, first year 7.0 10.0
Future salary increases, thereafter 7.0 8.0
     
Assumed normal retirement age is 60 years in India. 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.
2020    
Change in discount rate, percentage points + 1% -1%
Impact on the defined benefit obligation, EUR 1,000 -56 76
     
Change in future salary increases, percentage points + 1% -1%
Impact on the defined benefit obligation, EUR 1,000 -49 59
     
2019    
Change in discount rate, percentage points + 1% -1%
Impact on the defined benefit obligation, EUR 1,000 -22 25
     
Change in future salary increases, percentage points + 1% -1%
Impact on the defined benefit obligation, EUR 1,000 22 -20