Annual Report 2008 English [PDF, 2.69 MB] - Tessenderlo Group

Tessenderlo Group
23. Employee benefits
The provision for early retirement and defined benefit pension plans recognised in the balance sheet is
as follows:
Early
retirement
provision
Defined benefit
pension plan
Total
Balance at 1 January 2008 16.8 29.6 46.4
Additions 0.6 1.6 2.2
Use of provision - -0.3 -0.3
Reversal of provision -4.6 -5.3 -9.9
Translation differences - -0.3 -0.3
Transfers 2.8 - 2.8
Balance at 31 December 2008 15.6 25.3 40.9
The entity’s accounting policy for recognising actuarial gains and losses
The recognition of actuarial gains and losses is determined separately for each defined benefit plan.
All actuarial gains and losses as at 1 January 2004, the date of transition to IFRSs, were recognised. All
actuarial gains and losses subsequent to 1 January 2004 exceeding a corridor of 10 % of the higher of
the present value of the defined benefit obligations and the fair value of plan assets are recognised in
the income statement over the expected average remaining working lives of employees participating in
the plan. Otherwise, the actuarial gain or loss is not recognised.
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A general description of the type of plan
• Employee Benefits
These provisions are recorded to cover the post employment benefits and cover the pension plans and
other benefits in accordance with local practices and conditions, following an actuarial calculation taking
into account the financing of insurance companies and other pension funds. The most important pension
plans are located in Belgium, the Netherlands, the United States of America, the United Kingdom,
Germany and Italy.
• Defined contribution plans
The defined contribution pension plans are plans for which the company pays pre-determined
contributions to a legal entity or a separate fund, in accordance with the settings of the plans. The
company’s legal or constructive obligation is limited to the amount contributed. The contributions are
recognised as an expense in the income statement as incurred and are included in “Payroll and related
benefits” (note 6).
• Defined benefit plans
These plans are financed externally by pension funds or insurance companies. Independent actuaries
perform an actuarial valuation on a regular basis. All actuarial gains and losses as at 1 January 2004,
the date of transition to IFRSs, were recognised.