Hexagon Annual Report 2019

NOTE 8 PENSIONS AND BENEFIT OBLIGATIONS The Company is legally obliged to have occupational pension arrangements under the Norwegian Mandatory Occupational Pension Act. The Company's pension arrangements satisfy the requirements of this Act. The parent Company’s pension arrangements cover 13 people in total - 11 employed and 2 retired. Pension arrangements are dealt with according to the Norwegian Accounting Standard NRS 6A for pension costs. As of 1 January 2018, the company terminated its defined benefit pension plan. The members joined a defined contribution pension plan with effect of the same date. The defined pension plans gave an entitlement to defined future returns on plan assets. These largely depended on years of service, salary level on retirement and the amount of national insurance contributions. The company’s benefit obligation was covered by an insurance plan. The defined contribution pension plan's contribution rates are 7% for salaries in the range of up to 7,1 times the national insurance base rate (G) and 25,1% for salaries in the range 7,1 to 12 G. Contributions for the year were expensed at NOK 1 660 thousand (1 482), excluding employer's contributions. (NOK 1 000) 2019 2018 Interest cost on benefit obligation 0 0 Expected return on plan assets 0 0 Administrative costs 0 0 Employer’s contribution 0 0 Change of plan 0 639 Total 0 639 NET PENSION EXPENSES FOR THE YEAR IN THE DEFINED BENEFIT PENSION PLAN ARE CALCULATED AS FOLLOWS (NOK 1 000) 2019 2018 Present value of funded obligations 0 0 Fair value of plan assets 0 0 Employer's contributions on net pension liabilities 0 0 Net pension liabilities/plan assets recognized in balance sheet 31.12 0 0 Net liability recognized in balance sheet 1 January 0 -383 Recognized benefit expense 0 639 Premium payments/contributions paid 0 -87 Actuarial gains/losses recognized directly in equity 0 -169 Net liability recognized in balance sheet 31.12 0 0 Retirement benefit obligation 0 0 Plan assets 0 0 Accumulated actuarial gains/losses are recognized directly in equity (net after tax) 0 0 PENSION LIABILITIES AND PLAN ASSETS (NOK 1 000) 2019 2018 Discount rate NA NA Expected salary adjustment NA NA Expected pension adjustment NA NA Adjustment of national insurance base rate NA NA Expected return on plan assets NA NA Mortality table NA NA FINANCIAL ASSUMPTIONS 76 164 2019 AT A GLANCE FROM THE BOARD ROOM FINANCIAL STATEMENTS