28. Employee Benefits - - - - 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

Rabobank Bronnenarchief

Annual Reports Rabobank | 2018 | | pagina 198