Note 1 - Beerenberg

Pension cost: 2012 2011
Current value of pension accruals for the year 0 598
Interest cost of pension obligation 84 212
Expected return on plan assets 0 0
Amortisation of actuarial (gain)/loss -65 -871
Recognised one-off effect as a result of discontinuation of scheme 0 0
Administration costs 0 0
Accrued National Insurance contributions 12 114
Net accrued pension cost of defined benefit scheme 31 54
One-off impact as a result of deficiency in the AFP scheme -1 620 -1 580
Cost of contribution-based scheme and other pension costs 21 715 16 714
Total pension cost 20 126 15 187
Pension obligation, unfunded schemes: 2012 2011
Estimated pension obligation 1 918 5 010
Estimated plan assets 0 0
Estimated obligation – AFP shortfall 5 218 6 838
Estimated net pension obligation 7 137 11 848
Unrecognised change in actuarial gain/(loss) 219 562
Net pension obligation 7 355 12 410
Accrued National Insurance contributions 270 706
Pension obligation 7 626 13 116
The actuarial assumptions are based on assumptions
generally applied in the insurance industry with regard
to demographic factors. Since the actuarial liabilities only
includes the AFP-scheme which is beeing wound up, changes
in assumptions will only result in insignificant effects. A
sensitivity analysis is performed by changing the discount
rate + 0.5 % and (-0.5 %). This results in a lower (higher) cost
and lower (higher) liability of approximately 11.
In February 2010 it was decided to wind up the AFP scheme,
and it was only possible to take early retirement under the old
scheme up until 31.12.2010. The gain from discontinuing the
scheme was recognised as revenue in 2010 and is presented as
a reduction in salary costs. One remaining provision concerns
the Group’s contribution for persons who took early retirement
under the old scheme. When dsicontinuing the old scheme, it
became clear that the scheme had a substantial undercoverage.
This undercoverage must be covered by the member companies
by way of continued payments of premiums for the next five
years. The company’s share of the undercoverage has been estimated,
and provisions have been made in the financial statements.
The Group’s share of this undercoverage was estimated
and accrued in the financial statements as of 31.12.2010 based
on an estimate of NOK 6,800 per employee. This provision is
per 31.12.2012 decreased by 2/5 as it is now only 3 years until
the old scheme is fully discontinued. This reduction is presented
as a negative amount of 1,620 in 2012 as a one-off impact
as a result of undercoverage in the AFP scheme. The Company’s
estimated remaining obligation related to the undercoverage in
the old AFP-scheme is 5,218 as of 31.12.12.
A new AFP scheme has been established to replace the old
AFP scheme. Unlike the old scheme, the new AFP scheme
is not an early retirement scheme but a scheme that pays a
lifelong supplement to ordinary pension benefits. Employees
may elect to join the new AFP scheme from the age of 62 while
continuing to work, and they will accrue additional benefits by
continuing to work until the age of 67. The new AFP scheme
is a defined benefit multiemployer pension scheme and is
financed by premiums set as a percentage of salary. There is
currently no reliable measurement and allocation of obligations
and assets under the scheme. The scheme is accounted
for as a contribution-based pension scheme whereby premium
payments are recognised as an expense as incurred and no
provisions are made in the financial statements.
The difference between the booked pension liabiltity 7,370,
and the presented pension liability above of 7,626 is related
to accruals conserning mandatory occupational pension and
expanded pension agreements for executives.
Beerenberg CORP. AS Group group accounts 2012
63