27 Employee benefits
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Inhoudsopgave Voorwoord Bestuursverslag Corporate governance
Consolidated Financial Statements Company Financial Statements Pillar 3
in millions of euros 2016 2015
Employee benefits-assets (7) (7)
Employee benefits - liabilities 315 356
Total employee benefits 308 349
Pension plans 158 110
Other employee benefits 150 239
Total employee benefits 308 349
27.1 Pension plans
Rabobank has placed its Dutch pension plan with Rabobank
Pension Fund. The scheme is a collective defined contribution
plan with a pensionable age of 67 and a target accrual
percentage of 2. Each year Rabobank deposits pension
contributions into the Rabobank Pension Fund based on a fixed
system in an attempt to achieve the target pension accrual
for services provided during the year of service based on
a conditional career-average plan with a conditional indexation.
Rabobank complies with all its pension obligations by paying
the annual pension premium. Rabobank therefore has no more
financial liabilities with regard to underlying membership years
and already accrued pension rights. In the context of the risks
transferred, Rabobank made a one-off payment in 2013 to
the amount of 500 towards the creation of an index deposit.
In addition, Rabobank will act as a guarantor during the period
2014-2020 for the realisation of the target pension accrual for
the services provided during this period up to a maximum
amount of 200 (2015: 250).
The new pension plan qualifies as a defined contribution plan
under IAS 19. Rabobank's obligation is limited to the premium
payments owed, less previously made payments.
As of 31 December 2016, a few small plans still qualify as
defined benefit pension plans.These are career-average defined
benefit pension plans, administered by a fund or otherwise that
are related to the remuneration of employees upon retirement
and which mostly pay annual pensions. Annual contributions
are paid to the funds at a rate necessary to adequately finance
the accrued liabilities of the plans calculated in accordance
with local legal requirements. The assets related to the plans
maintained in a fund are held independently of Rabobank
assets in separate funds managed by trustees. The obligations
are valued each year by independent actuaries based on the
method prescribed by the IFRS.The most recent actuarial
valuations were performed at the end of 2016. The tables
relating to the weighted averages of the main actuarial
assumptions and the future premium payments in 2016
relate to the pension plan of Friesland Bank and ACC Loan
management. The table showing investments in plan assets are
based on the pension plan of ACC Loan Management.
In millions of euros
2016
2015
Defined benefit obligation
758
679
Fair value of plan assets
600
569
Net defined benefit obligation
158
110
Main actuarial assumptions
The main actuarial assumptions forthe valuation of the defined
benefit obligation as at 31 December are the discount rate,
the salary increases, the price inflation. Recent mortality tables
have also been used for the valuation of the respective plans.
The weighted averages of the actuarial financial assumptions
are shown in the table below (in per year):
Movements in plan assets and liabilities:
in millions of euros
2016
2015
Defined benefit obligation
Opening balance on 1 January
679
673
Exchange rate differences
(16)
9
Interest cost
17
18
Current service cost
6
Contributions paid by employees
Benefits paid
(25)
(22)
Pension plan amendment
Curtailments
Other - 8
Experience adjustments
(3)
Actuarial gains and losses arising from changes
in demographic assumptions
4
2
Actuarial gains and losses arising from changes
in financial assumptions
102
(15)
Defined benefit obligation on 31 December
758
679
Fair value of plan assets
Opening balance
569
557
Exchange rate differences
(13)
5
Interest income
14
15
Contributions paid by employer
10
7
Contributions paid by employees
Benefits paid
(25)
(22)
Administrative costs
(2)
Other
(4)
1
Experience adjustments
(2)
Remeasurements arising from changes in
financial assumptions plan assets
51
8
Fair value of plan assets on 31 December
600
569
The costs recognised in profit and loss are shown in the
table below.
In millions of euros
2016
2015
Interest cost on liabilities
17
18
Interest income on plan assets
(14)
(15)
Current service cost
6
Pension plan amendment
Losses/(gains) on curtailments, settlements and
costs - 1
Total cost of defined benefit pension plans
3
10
229 Notes to the consolidated financial statements