28. Employee Benefits
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About this
Report
Chairman's
Foreword
Corporate
Management Report Appendices Governance
Consolidated Financial Company Financial
Statements Statements
Amounts in millions of euros
2018
2017
Employee benefits - assets
(6)
(6)
Employee benefits - liabilities
254
292
Total employee benefits
248
286
Pension plans
118
152
Other employee benefits
130
134
Total employee benefits
248
286
28.1 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 68 and a target accrual percentage
of 2. Each year Rabobank deposits pension contributions into the
Rabobank Pension Fund based on a fixed system aimed at
achieving thetarget 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 EUR 500 million
towards the creation of an index deposit. In addition, Rabobank
will act as a guarantor during the period 2014-2020 for the
realization of the target pension accrual for the services provided
during this period up to a maximum amount of EUR 217 million
(2017: EUR 200 million).
The Dutch 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 December
31,2018, 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 2018. The tables relating to the weighted averages of the
main actuarial assumptions, the sensitivity analysis and the future
premium payments relate to the pension plan of Friesland Bank
(2017: Friesland Bank and ACC Loan management).
Amounts in millions of euros
2018
2017
Defined benefit obligation
487
748
Fair value of plan assets
369
596
Net defined benefit obligation
118
152
Movements in plan assets and liabilities:
Amounts in millions of euros
2018
2017
Defined benefit obligation
Opening balance on January 1
748
758
Exchange rate differences
(1)
(7)
Interest expense
16
14
Benefits paid
(22)
(24)
Settlements
(232)
Other
3
5
Experience adjustments
(1)
(5)
Actuarial gains and losses arising from
changes in demographic
assumptions
(1)
(2)
Actuarial gains and losses arising from
changes in financial assumptions
(23)
9
Defined benefit obligation on
December 31
487
748
Fair value of plan assets
Opening balance on January 1
596
600
Exchange rate differences
(1)
(3)
Interest income
9
11
Contributions paid by employer
30
10
Benefits paid
(22)
(24)
Settlements
(240)
Other
(2)
Experience adjustments
(1)
Remeasurements arising from
changes in financial assumptions plan
assets
(1)
3
Fair value of plan assets on
December 31
369
596
The costs recognised in profit and loss are shown in the table
below.
Amounts in millions of euros
2018
2017
Interest expense on liabilities
16
14
Interest income on plan assets
(9)
(11)
Losses/(gains) on curtailments,
settlements and costs
6
(1)
Total cost of defined benefit
pension plans
13
2
Main Actuarial Assumptions
The main actuarial assumptions for the valuation of the defined
benefit obligation 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):
Annual Report 2018 - Consolidated Financial Statements
196