Annual Report 2010 - Falck

80 Falck Annual Report 2010 | Group
Notes to the Group financial statements
Note DKK million 2010 2009
22 Pension obligations (continued)
Breakdown of change in pension provisions:
Pension provision at 1 January 75 72
Foreign exchange differences 4 14
Cost in respect of current financial year 2 9
Changes in actuarial estimates (37) (23)
One-off effects of transition to defined-contribution plan (20) -
Calculated interest 1 3
Paid out during the period (1) -
Pension provisions at 31 December 24 75
Expected contributions for next year - 8
movements in fair value of plan assets
Plan assets at 1 January 56 49
Foreign exchange differences 3 8
Expected return on plan assets 1 3
Employer's contributions to plan during the period 2 10
Changes in actuarial estimates (35) (13)
Paid out during the period (1) (1)
Total plan assets at 31 December 26 56
Actual return on plan assets (1) 1
Total actuarial gains recognised in the statement of comprehensive income 2 10
Total accumulated actuarial gains recognised in the statement of comprehensive income (7) (9)
Breakdown of plan assets:
Shares 4 3
Bonds 16 34
Property etc. 4 9
Other 2 10
Total plan assets 26 56
The defined-contribution plans are paid and recognised as incurred, and the Group has no obligations
to the employees thereafter.
The calculation of the obligation is based on the following assumptions:
Norway
Salary increases 4.0% 4.3%
Expected return on plan assets 5.0% 5.6%
Discount rate 3.6% 4.4%
Netherlands
Salary increases 3.8% 3.8%
Expected return on plan assets 5.5% 5.5%
Discount rate 5.5% 5.5%
The return on plan assets has been set on the basis of market expectations of the rate of return.
Breakdown of the Group's pension obligations for the current and the preceding four years:
2010 2009 2008 2007 2006
Actuarial pension obligations (24) (75) (72) (70) (58)
Plan assets 26 56 49 53 54
(Under funding)/over funding 2 (19) (23) (17) (4)
Experience-based change to obligations (1) (9) (2) (5) 0
Experience-based change to plan assets 0 (3) (3) 0 0