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146
Notes to the financial statements,
Renewable Energy Corporation ASA
REC Annual Report 2011
Retirement benefit obligations in the balance sheet
(NOK INMILLION)
2011
2010
Net retirement benefit obligations at January 1
17
11
Net benefit expense
8
11
Actuarial gains and losses recognized directly in equity
-16
-2
Pension premiums and benefits paid
-1
-2
Net retirement benefit obligations at December 31
9
17
The amounts recognized in the income statement are as follows
(NOK INMILLION)
2011
2010
Current service cost
6
9
Interest cost on gross retirement benefit obligations
1
0
Employer’s social security tax on defined benefit costs
1
1
Total benefit plans
8
11
Contribution plans including employer's social security tax
3
5
Pension expense including social security tax
11
16
The defined benefit plan for base salaries up to 12 G (NOK 950,000 at December 31, 2011) was decided to be terminated at the end of
2009 and replaced by other pension and personnel insurance plans. For pension plans, in 2010 and 2011 there have been a compensation
plan for salaries up to 12 G, a defined benefit plan as compensation for those that were employed at January 1, 2010 and are estimated to
earn less pension benefits in the new contribution plan than in the previous benefit plan, a defined benefit plan for salaries over 12 G and one
individual defined benefit plan. For information on assumptions used and description of the pension plans, see note 19 to the consolidated
financial statements.
The number of employees in REC ASA’s pension plan for salary over 12 Gwas 22 (31 at the end of 2010) and for the compensation plan 49
at the end of 2011 (58 at the end of 2010). REC ASA’s pension plans for all employees fulfill the requirements according to the Norwegian
law: “Lov om obligatorisk tjenestepensjon”.
Accumulated actuarial gains recognized directly to equity as of December 31
(NOK INMILLION)
2011
2010
Gross before tax
18
3
Less tax
-5
-1
Total recognized directly to equity
13
2
SHARE OPTION PROGRAMS
See note 32 to the consolidated financial statements for the REC Group for details of the share option programs.
In the income statement, an income of NOK 3.2million was recognized for 2011 and an expense of NOK 3.7million for 2010. The income
in 2011 is due to the adjustment of vesting period for the share option programs 2008, 2009 and 2010. At December 31, 2011 the
accumulated amount recognized to equity was NOK 16.4million and NOK 20.5million at December 31, 2010. At December 31, 2011 the
accumulated expense recognized in REC ASA was NOK 6.6million and NOK 9.8million at December 31, 2010. The difference between the
amounts recognized to equity and the expenses are share options offered by REC ASA to employees in subsidiaries, that is recognized as
additions to the cost price of shares in subsidiaries. Remaining estimated fair value to be expensed was NOK 14million at December 31,
2011 and NOK 12.3million at December 31, 2010.