Odfjell SE Annual Report 2012

odfjell group
The major categories of plan assets in percentage of the fair value of total assets:
Norway USA
2012 2011 2012 2011
Equities 7% 12% 63% 61%
Bonds/securities 56% 49% 37% 38%
Money market fund 17% 21% 0% 1%
Property 20% 18% 0% –
The plan assets in the Netherlands are invested by an insurance company with a guaranteed investment return from year-to-year. The return
for 2012 was between 3%–4% depending on investment scheme.
In calculating the net pension liabilities the following assumptions have been made:
Norway USA Netherlands
2012 2011 2012 2011 2012 2011
Discount rate 2.3% 2.6% 4.4% 5.7% 4.6% 4.6%
Expected return on assets 4.0% 4.1% 7.5% 8.0% 4.6% 4.6%
Adjustment of wages 3.5% 3.5% 3.0% 2.1% 2.0% 2.0%
Pension indexation (Sailors) 0.2% (3.25%) 0.1% (3.25%) 2.4% 3.0% 2.0% 2.0%
Mortality table K2005/KU K2005/KU IRS Funding
Table
RP 2000 GBM/GBV
2012-2062
GBM/GBV
2010-2060
Expected return on assets is generally the discount rate adjusted for the effect of the allocation of plan assets.
The sensitivity of the overall pension liability to changes in the weighted principal assumptions is:
Change in assumption
Impact on overall liability
Discount rate Increase/decrease by 0.5% Decrease/increase by 10%
Inflation rate Increase/decrease by 0.5% Increase/decrease by 10–12%
Salary growth rate Increase/decrease by 0.5% Increase/decrease by 10%
Rate of mortality Increase by 1 year Increase by 2–3%
Defined contribution plan
Several of the Group companies have defined contribution plans in accordance with local legislation. As at 31 December 2012 total 1,261
members were covered by the plans. The contributions recognised as expenses equalled USD 5.6 million in 2012. For 2011 the contributions
was USD 3.9 million.
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odfjell annual report 2012