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283
>> Consolidated Financial Statements
Part B – Consolidated Balance Sheet – Liabilities
12.2 Provisions for risks and charges: annual changes (� '000)
Items/Components
Changes in 2009
Pensions and post
retirement benefit
obligations
Other
provisions
A. Opening balance 4,553,022 3,495,534
B. Increases 786,265 902,549
B.1 Provisions for the year 87,851 716,274
B.2 Changes due to the passage of time 248,721 16,075
B.3 Differences due to discount-rate changes - 12,840
B.4 Other increases 449,693 157,360
C. Decreases 748,659 1,006,280
C.1 Use during the year 461,479 730,263
C.2 Differences due to discount-rate changes - 448
C.3 Other decreases 287,180 275,569
D. Closing balance (*)
4,590,628 3,391,803
* o/w: Defined-benefit Pension Funds in the amount �4,513,206.
12.3 Pensions and other post-retirement defined-benefit obligations (� '000)
1. Introduction to the funds
There are several defined-benefit plans within the Group, i.e., plans whose benefit is linked to salary and employee length of service
both inside and outside Italy. The Austrian, German and Italian plans account for over 90% of the Group’s pension obligations.
Most of the Group’s plans are not financed, with the exception of the contractual trust arrangement or CTA (an external fund
managed by independent trustees), the HVB Trust Pensionfonds AG and the Pensionskasse der HypoVereinsbank WaG, which
are set up by HVB AG for defined benefit plans in Germany, and the UK defined benefit plans. The HVB Trust Pensionfonds AG
was consolidated for the first time in 2009 by means of a transfer of the pension obligations (and related assets) attributable to
retirees with the so-called “direct undertaking” in Germany.
Most of the Group’s defined benefit plans are closed to new recruits, for example in Austria, Germany and Italy, where most new
recruits join defined contribution plans or plans considered such. The contributions for defined contribution plans are charged to the
income statement.
The obligations arising from defined benefit plans are determined using the projected unit credit method. The assets of financed
plans are valued at their fair value on the balance sheet date. The balance sheet comprises the deficit or surplus (i.e., the
difference between obligations and assets) net of unrecognized actuarial gains and losses. Actuarial gains and losses are
recognized in the income statement only if they exceed the 10% corridor.
The actuarial assumptions used to determine obligations vary from country to country and from plan to plan in line with IAS 19. Each
country’s discount rate is fixed at the balance sheet date on the basis of the market yields of blue chip stocks in the same currency
and with the same average life as the liabilities.
2. Changes in provisions 12.31.2009 12.31.2008
Opening net defined-benefit obligations 4,475,084 4,741,834
Service cost 84,783 83,766
Cost of defined-benefit plans relating to previous employment - 3,159
Finance cost 242,590 226,583
Actuarial (gains) losses recognised in the year 2,067 (11,681)
(Gains) losses on curtailments 6,131 (3,321)
Benefit paid (454,379) (493,588)
Other increases 444,097 297,390
Other reductions (287,167) (369,058)
Closing net defined-benefit obligations 4,513,206 4,475,084