27 Employee benefits
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Contents Introduction Management report Appendices Corporate governance Consolidated Financial Statements Company Financial Statements
in millions of euros
2017
2016
Employee benefits - assets
(6)
(7)
Employee benefits - liabilities
292
315
Total employee benefits
286
308
Pension plans
152
158
Other employee benefits
134
150
Total employee benefits
286
308
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 (2016: 200).
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 2017, 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 2017. The tables
relating to the weighted averages of the main actuarial
assumptions and the future premium payments in 2017
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
2017
2016
Defined benefit obligation
748
758
Fair value of plan assets
596
600
Net defined benefit obligation
152
158
Movements in plan assets and liabilities:
in millions of euros
2017
2016
Defined benefit obligation
Opening balance on 1 January
758
679
Exchange rate differences
(7)
(16)
Interest cost
14
17
Benefits paid
(24)
(25)
Other
5
Experience adjustments
(5)
(3)
Actuarial gains and losses arising from changes
in demographic assumptions
(2)
4
Actuarial gains and losses arising from changes
in financial assumptions
9
102
Defined benefit obligation on 31 December
748
758
Fair value of plan assets
Opening balance
600
569
Exchange rate differences
(3)
(13)
Interest income
11
14
Contributions paid by employer
10
10
Benefits paid
(24)
(25)
Other
(4)
Experience adjustments
(1)
(2)
Remeasurements arising from changes in
financial assumptions plan assets
3
51
Fair value of plan assets on 31 December
596
600
The costs recognised in profit and loss are shown in the table
below.
in millions of euros
2017
2016
Interest cost on liabilities
14
17
Interest income on plan assets
(11)
(14)
Losses/(gains) on curtailments, settlements and costs
(1)
Total cost of defined benefit pension plans
2
3
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):
2017 2016
Discount rate 1.7% 1.7%
Salary increases 1.8% 1.7%
Price inflation 1.8% 1.7%
Rabobank Annual Report 2017 - Consolidated financial statements
225
