Page 92 - EVRY Annual Report 2012

Annual Accounts Group 92
Change in pension liabilities
NOK million 2012 2011 2010 2009 2008
Pension liabilities 1 January 320.7 403.6 234.5 790.8 498.4
Pension costs 13.1 -42.0 50.0 -451.5 122.0
Premium payments -43.6 -9.9 -14.5 -81.0 -82.0
Acquisition/sale of business 1.3 0.0 101.1 - 251.7
Benefits paid and Paid-up policies -14.3 -31.0 -11.3 -19.5 -
Other changes -1.6 0.2 43.7 -4.3 0.6
Pension liabilities 31 December 275.7 320.7 403.6 234.5 790.8
The summarised information presented is based on annual calculations carried out by an independent actuary.
The following assumptions are used in the actuarial calculations:
2012 2011 2010 2009 2008
Discount rate 3.9 % 2.6 % 4.0 % 5.0 % 4.4 %
Future salary inflation 3.5 % 3.5 % 4.0 % 4.5 % 4.0 %
Growth in the basic state pension (G) 3.3 % 3.3 % 3.8 % 4.5 % 4.0 %
Annual increase in pensions 0.2 % 0.1 % 1.3 % 4.0 % 3.5 %
Staff turnover Own tabel Own tabel Own tabel 10.0 % 10.0 %
Mortality assumptions K2005+ K2005 K2005 K2005 K2005
Expected return on pension assets
for determining pension cost: 4.0 % 4.1 % 6.3 % 5.8 % 6.5 %
The assumptions used for pension calculations follow the guidelines issued by the Norwegian Accounting Standards
Board (NRS) as at 31 December 2012. Over recent years, the Norwegian market for covered bonds has grown
strongly. NRS has therefore accepted the use of covered bond interest rates as the basis for the discount rate for
pension calculations instead of using the interest rate on Norwegian government bonds. Based on it’s assessment of
the depth in the Norwegian market for covered bonds, EVRY has applied the parameters recommended by the NRS
2012 guidelines, which includes using the covered bond interest rate as the basis for the discount rate.
Pension calculations use the K2005 table for mortality risk, which is reinforced by 10 % for men and 15 % for
women. The risk table for disability, IR02, corresponds with the estimated risk of disability in the group. Extracts
of information from the risk tables are provided below. The table shows the likelihood of an employee in a specified
age group becoming disabled or dying within 12 months, and also shows life expectancy.
Disable % Mortality % Expected duration of life
Alder Man Woman Man Woman Man Woman
20 0.08 0.11 0.01 0.01 80.5 84.3
40 0.18 0.26 0.07 0.04 80.8 84.5
60 1.93 2.90 0.63 0.36 82.3 85.4
80 - - 5.90 3.90 88.0 89.7
The plan assets as of 31 December were invested as follows:
Investment category
2012 2011 2010 2009 2008
Bonds 68% 68% 56% 63% 60%
Equity securities 17% 16% 22% 24% 23%
Properties 13% 14% 13% 10% 13%
Other 2% 2% 9% 3% 4%
Total 100% 100% 100% 100% 100%