REC Silicon Annual Report 2019

66 Notes to the consolidated financial statements, REC Silicon Group REC Silicon Annual Report 2019 RETIREMENT BENEFIT OBLIGATIONS AND EXPENSES The cost of defined pension benefit plans is expensed in the period that the employee renders services and becomes eligible to receive benefits. The cost of defined contribution plans is expensed as contributions become payable. REC Silicon has an employer-sponsored defined contribution retirement plan (401 (k)) for employees in the United States. The REC Silicon subsidiary REC Advanced Silicon Materials LLC (ASiMI) in the United States had defined benefit plans at the time it was acquired in 2005. At that time, these plans were frozen, and no future benefits are accruing to the members of the plans. Previous pension rights remain unchanged and are fully vested. The tables below for defined benefit plans are related to Advanced Silicon Materials LLC only. REC Silicon maintains a defined contribution plan for its employee in Norway. For defined benefit plans, the plan assets and the projected benefit obligations were measured at December 31, 2019 and 2018. An independent actuary performed actuarial calculations. The present value of the projected defined benefit obligation, and the related current service cost, were measured using the projected unit credit method. Defined benefit plans (USD INMILLION) 2019 2018 Gross retirement benefit obligations at January 1 38.5 42.6 Interest cost on pension obligations 1.5 1.4 Remeasurements recognized through OCI 5.3 -4.0 Benefits paid, paid-up policies and disability obligation -1.6 -1.6 Gross retirement benefit obligations at December 31 43.8 38.5 Fair values of plan assets at January 1 23.0 22.5 Actuarial return on plan assets 0.4 0.3 Pension premiums 2.5 1.8 Benefits paid, paid-up policies and disability reserve -1.6 -1.6 Fair value of plan assets at December 31 24.3 23.0 Funded status at December 31 19.5 15.5 Net retirement benefit obligations at December 31 19.5 15.5 The plan assets relate to one of three ASiMI plans and are currently invested in stable value funds. Retirement benefit obligations in the statement of financial position (USD INMILLION) 2019 2018 Net retirement benefit obligations at January 1 15.5 20.1 Net periodic benefit costs including net interest 0.6 0.7 Remeasurements recognized through OCI 5.9 -3.5 Pension premiums and benefits paid -2.5 -1.8 Net retirement benefit obligations at December 31 19.5 15.5 19