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