20. Pension obligations
The Group has one defined benefit pension plan in India, including the whole personnel of the Indian subsidiary. The pension plan constitute the obligatory pension and termination benefits for the employees, and the amount of the plan benefit is based on final salary and number of years in service.
EUR 1,000 |
2019 |
2018 |
|
|
|
Defined benefit liability in the balance sheet: |
Present value of funded obligations |
765 |
742 |
Fair value of plan assets (-) |
|
|
Net liability (+) / net asset (-) in the balance sheet |
765 |
742 |
|
|
|
Recociliation of the changes in balance sheet |
|
|
Net liability (+) / net asset (-) in the balance sheet in the beginning of the period |
743 |
859 |
Pension expense recognised in profit and loss |
136 |
166 |
Remeasurement items recognised in other comprehensive income |
77 |
5 |
Translation differences |
-167 |
-287 |
Net liability (+) / net asset (-) in the balance sheet at the end of the period |
789 |
742 |
|
|
|
Defined benefit expense in profit and loss |
Current service cost |
92 |
115 |
Interest income (-) and expense (+), net |
45 |
51 |
Pension expense recognised in profit and loss (note 5) |
136 |
166 |
|
|
|
Change in the defined benefit obligation: |
Defined benefit obligation in the beginning of the period |
743 |
865 |
Current service cost |
92 |
106 |
Interest cost |
45 |
47 |
Remeasurement items: |
|
|
Gains (-) / losses (+) arising from changes in demographical assumptions |
|
|
Actuarial gains (-) / losses (+) arising from changes in financial assumptions |
62 |
-6 |
Gains (-) / losses (+) arising from experience adjustments |
16 |
11 |
Translation differences |
-4 |
-34 |
Benefits paid (-) |
-164 |
-246 |
Defined benefit obligation at the end of the period |
789 |
743 |
|
|
|
Change in plan assets: |
Plan assets in the beginning of the period |
1 |
|
Interest income |
|
|
Remeasurement items: |
|
|
Return on plan assets excluding amounts included in interest income (+/-) |
1 |
|
Translation differences |
|
|
Payments from the plan: |
186 |
246 |
Benefits paid (-) |
-164 |
-246 |
Plan assets at the end of the period |
|
|
|
|
|
|
|
|
|
2019 |
2018 |
|
|
|
Actuarial assumptions at the reporting date |
% |
% |
Discount rate |
6.2 |
7.2 |
Future salary increases, first year |
10.0 |
8.0 |
Future salary increases, thereafter |
8.0 |
8.0 |
|
|
|
| | |
Assumed normal retirement age is 60 years in India. The turnover of the employees is assumed to decline evenly in line with the growing age, being 1 % for over 55 year olds and 15 % for under 30 year olds. Assumptions concerning mortality are made in accordance with the actuary's instructions and they are based on statistics and experience.
There is no information available on plan assets because they are commonly invested by the incurance company.
The sensitivity analysed below is calculated all other factors remaining unchanged.
2019 |
|
|
|
|
|
Change in discount rate, percentage points |
+ 1% |
-1% |
Impact on the defined benefit obligation, EUR 1,000 |
-22 |
25 |
|
|
|
Change in future salary increases, percentage points |
+ 1% |
-1% |
Impact on the defined benefit obligation, EUR 1,000 |
22 |
-20 |
|
|
|
|
|
|
2018 |
|
|
|
|
|
Change in discount rate, percentage points |
+ 1% |
-1% |
Impact on the defined benefit obligation, EUR 1,000 |
-18 |
21 |
|
|
|
Change in future salary increases, percentage points |
+ 1% |
-1% |
Impact on the defined benefit obligation, EUR 1,000 |
20 |
-18 |
| | |