The ATP Group Annual Report 2012

Management's Review Business Model Risk Pension Hedging and Investment Hedging Investment Administration Social Responsibility The ATP Group Financial StatementsInternational Recruitment. In 2012, FerieKonto paid holidayallowance totalling DKK 8.3bn to wage earners and collectedDKK 10.3bn from employers. The administration expensesof the scheme amounted to a total of DKK 76m, equivalentto DKK 82 per wage earner.FIBThe FIB scheme – collection of financing contributions. Private-sectoremployers pay contributions to finance ATPcontributions for employees during spells of absence fromthe labour market due to unemployment, sickness or maternity/paternityleave. ATP collects these contributions fromthe employers along with the employers' contributions tothe LG scheme. Collection of the contributions is a statutorycollection service performed by the ATP Group on behalfof the Danish Government and LG under the name FIB('financing contributions'). In 2012, ATP collected DKK 1.4bnfrom just under 134,000 employers, equivalent to DKK 962for each full-time employee per year. The administrationexpenses of the scheme amounted to a total of DKK 16m,equivalent to DKK 35 per collection.SFSSFS – Tax Reductions for Senior Citizens is managed in collaborationwith the Danish Tax and Customs Administration– SKAT. The scheme has been set up to encourage wageearners and self-employed people to remain in the labourmarket after age 60. ATP's role is to calculate the employmentrate of employees age 60 to 64 and notify them accordingly.In order to qualify for a tax reduction of up to DKK100,000, the employment rate for the five years from age60 to age 65 must be at least 90 per cent. Data from ATPcollections are used to calculate the employment rate. In2012, ATP issued almost 322,000 statements to the birth cohortsfrom 1947 to 1951. Administration expenses for 2012amounted to DKK 12m.SERVICES PROVIDED ON AN ARM'S LENGTH BASIS (ONMARKET TERMS)These services are provided on an arm's length basis, ormarket terms, through the subsidiary ATP PensionServiceA/S.For 2013, the contribution has been set at DKK 919 for eachfull-time employee.Barsel.dkBarsel.dk is a statutory maternity/paternity compensationscheme, covering those segments of the private-sector labourmarket that are not already covered by decentralisedcompensation schemes. Barsel.dk collects contributionsfor maternity/paternity compensation and reimburses employerswho pay wages to employees on maternity/paternityleave. In 2012, employers paid contributions of DKK513m into the scheme and reimbursement of DKK 453mwas paid to employers. Administration expenses amountedto DKK 39m. Approx. 100,000 employers are covered bythe scheme.PensionDanmarkThe ATP Group currently acts as a subcontractor for servicesinvolving contribution collection, membership administrationand disbursements on behalf of PensionDanmark.PensionDanmark has terminated its cooperation agreementwith ATP, effective 1 June 2014. The termination of the agreementwill affect the economies of scale of the ATP Group,but the time horizon allows the Group to take the necessaryinitiatives and make the necessary adjustments to cushionthe effect of the discontinuation of this contractDA-BarselThe ATP Group manages the maternity/paternity schemeDA-Barsel on behalf of the Confederation of Danish Employers(DA). Administration involves the collection of contributionsfrom 14,500 employers and reimbursement to companieswith employees on maternity/paternity leave.The ATP Group – Annual Report 201259