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.



Sensitivity analysis




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