Hydro Annual Report 2011b

F46
FINANCIAL STATEMENTS
Note 32 - Employee retirement plans
Note 32 - Employee retirement plans
Pension Benefits
Norsk Hydro ASA and some of its subsidiaries have defined benefit retirement plans that cover the majority of their employees.
These plan benefits are generally based on years of service and final salary levels. Other companies, including the newly
acquired Brazilian business, have defined contribution or multiemployer plans. In Norway, Hydro closed its main defined
benefit plans as from March 1, 2010 for new employees who became members of the new defined contribution retirement
plans. Employees who were members of the defined benefit plans were given a choice to change to the new defined
contribution plans as from June 1, 2010, of which approximately 20 percent chose the new plans. A settlement gain was
recognized in the accounts in 2010.
Amounts in NOK million 2011 2010
Net periodic pension cost
Defined benefit plans
Benefits earned during the year, net of participants' contributions 342 343
Interest cost on prior period benefit obligation 740 818
Expected return on plan assets (641) (679)
Recognized (gain) loss 7 (83)
Past service cost 10 14
Curtailment/settlement (gain) loss ­ (129)
Net periodic pension cost 457 285
Defined contribution plans 79 44
Multiemployer plans 35 50
Termination benefits and other 89 207
Total net periodic pension cost 660 586
Change in projected benefit obligation (PBO)
Projected benefit obligation at beginning of year (18 356) (17 922)
Benefits earned during the year (347) (348)
Interest cost on prior period benefit obligation (740) (818)
Actuarial gain (loss) (1 817) (1 003)
Plan amendments (5) (21)
Benefits paid 844 845
Curtailment/settlement gain (loss) ­ 630
Special termination benefits (43) (1)
Divestments ­ 7
Foreign currency translation (22) 275
Projected benefit obligation at end of year (20 486) (18 356)