26 Subordinated liabilities
Contents Management report Corporate governance
assumptions and the future premium payments in 2015 relate
to these two pension plans. The table showing investments
in plan assets are based on the pension plan administered by
ACC Loan Management.
in millions of euros
2015
2014
Present value of liabilities administered by funds
679
673
Fair value of plan assets
569
557
Net liabilities
110
116
Consolidated financial statements Financial statements Pillar 3
The costs recognised in the consolidated profit and loss
account are shown in the table below.
in millions of euros 2015 2014
Interest on liabilities 18 21
Interest on plan assets (15) (19)
Costs based on the period of employment during
the year 6 3
Pension plan amendment - 26
Losses/(gains) on discounts, settlements and costs 1 1
Total cost of defined benefit pension plans 10 32
Movements in plan assets and liabilities:
Estimated premium contributions for 2016 are approximately 6.
Plan assets have been allocated as follows:
2015 2014
Shares and alternatives 10.1 24.2%
Interest-bearing securities 45.0% 31.0%
Real estate 3.6% 4.7%
Cash and cash equivalents 1.1% 0.6%
Other 40.2% 39.5%
Total 100% 100%
The weighted averages of the main actuarial assumptions for
the valuation of the pension provision (defined benefit pension
plans) as at 31 December are shown in the table below (in
per year):
2015 2014
Discount rate 2.5% 2.3%
Wage inflation 1.6% 1.6%
Price inflation 1.6% 1.6%
25.2 Other employee benefits
Other employee benefits mainly comprise liabilities for future
long-service awards for an amount of 95 (2014:106).
in millions of euros 2015 2014
Rabobank 15,479 11,902
Other 24 26
Total subordinated liabilities 15,503 11,928
In 2015, Rabobank issued four subordinated bonds in AUD and
USD.The AUD 225 million bond matures in July 2025 and has
a coupon rate of 5.00%The AUD 475 million bond matures in
July 2025 and has a variable coupon rate. Rabobank is entitled,
but not obliged, to early repayment of these AUD bond loans
on 2 July 2020.The USD 1,500 million bond matures in August
2025 and has a coupon rate of 4.375%.The USD 1,250 million
bond matures in August 2045 and has a coupon rate of 5.25%.
In 2014, Rabobank issued three subordinated bonds in GBP,
Euros and JPY. The EUR 2 billion bond matures in May 2026
and has a coupon rate of 2.50%. Rabobank is entitled, but not
obliged, to early repayment of this bond loan in 2019. The GBP
1 billion bond matures in May 2029 and has a coupon rate of
4.625%. The JPY 50.8 billion bond matures in December 2024
and has a coupon rate of 1.429%.
in millions of euros 2015 2014
Present value of liabilities administered by funds
Present value of entitlements on 1 January 673 545
Exchange rate differences 9 9
Net interest income 18 21
Increase in entitlements during the year 6 3
Premiums contributed by the employees
Benefits paid (22) (17)
Pension plan amendment - 26
Curtailments - (1)
Other 8 2
Actuarial gains and losses arising from changes
in demographic assumptions 2 39
Actuarial gains and losses arising from changes
in financial assumptions (15) 46
Present value of liabilities held in a fund on
31 December 679 673
Fair value of plan assets
Fair value of assets on 1 January 557 479
Exchange rate differences 5 7
Net interest income 15 19
Premium contributed by the employer 7 8
Premiums contributed by the employees
Benefits paid (22) (17)
Transfer of accrued benefits and costs (2)
Other 1 (5)
Actuarial result 8 66
Fair value of plan assets on 31 December 569 557
230 Rabobank Annual Report 2015
