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Unformatted text preview: plan offered to all employees in Norway was closed for new members during 2006 and
defined contribution plans with insurance companies were established as replacements.
3,661 of the Group’s employees were members of the contribution plan in Norway as of 31 December 2011 (3,710 as of 31 December 2010).
In 2011 3,454 of the Group’s employees were covered through the defined benefit plans funded through Telenor Pension Fund (3,815 in
2010). In addition the Telenor Pension Fund paid out pensions to 1,559 persons in 2011 (1,471 in 2010). Telenor Sweden has a defined benefit
plan with 748 active members in 2011 (853 in 2010). In other companies outside Norway, there are primarily contribution plans.
The Group offers an unfunded defined benefit plan to executive employees. As of 31 December 2011 the obligation recognised in the
statement of financial position was NOK 347 million (NOK 289 million as of 31 December 2010) and the benefit obligation amounted to
NOK 397 million (NOK 353 million as of 31 December 2010).
In Norway, the Group is a member of “agreement-based early retirement plans” (new AFP) which is considered a defined benefit multiemployer plan. The administrator is as of 31. December 2011 not able to calculate the Group’s share of assets and liabilities, and these plans
are consequently accounted for as defined contribution plans. The old AFP scheme was closed at 31 December 2010. To cover the deficit in
the old plan, the members have to pay a monthly contribution per employee over a five year period and accordingly a one-time cost of NOK
46 million was been recognised in 2010. The company’s obligation to pay a percentage of the benefits when an employee retires through old
AFP is recognised at the time of withdrawal. In 2011, NOK 47 million was recognised in the income statement related to AFP schemes and
NOK 50 million in 2010.
The defined benefit plan in Sweden has an obligation of NOK 333 million in 2011 and NOK 294 million in 2010. The pension expense was
NOK 39 million in 2011 (NOK 35 million in 2010). The assumptions are set within the recommended levels according to Swedish actuaries.
The discount rate used for the pension calculations as of 31 December 2011 was 3.5% compared to 3.8% in 2010. Expected salary increase
was set to 3.0%, which is the same as in 2010.
Some of the Swedish companies have multi-employer benefit plans. The administrators are not able to calculate the Group’s share of assets
and liabilities and these plans are consequently accounted for as defined contribution plans.
The risk table, K2005, is used for death and expected lifetime for the Norwegian plans, while the risk table for disability for the main pension
plan is based on Ku, which is the enhanced disability table of Storebrand (insurance company). The average expected lifetime in the risk
tables are 81 years for men and 85 years for women. The table below shows the probability of an employee in a certain age group becoming
disabled or dying, within one year, as well as expected lifetime. disability % death % Expected lifetime Age Men Women Men Women Men Women 20 40 60 80 0.12 0.21 1.48 - 0.15 0.35 1.94 - - 0.09 0.75 6.69 - 0.05 0.41 4.31 79.00 79.35 80.94 87.04 83.34
88.97 The plan assets were measured at 31 December 2011 and 2010. Calculation of the projected benefit obligations (PBO) as of 31 December
2011 was based on the member base at 9 December 2011 (as of 31 December 2010, 3 November 2010).
The actuarial calculations for the Telenor Pension Fund obligations were carried out by independent actuaries. The present value of the
projected defined benefit obligation, and the related current service cost and past service cost, were measured using the projected unit credit
Employees that leave the Group before the age of retirement receive a paid-up policy. Telenor Pension Fund administers some of these
policies. This is at the discretion of the Telenor Pension Fund and does not affect Telenor. At the time of issuance of paid-up policies Telenor is
relieved of any further obligations towards these people. The funds and obligations are valued at the time of issuance of paid-up policies, and
are derecognised from pension obligations and plan assets. /page 59/
telenor annual report 2011
notes to the financial statements / telenor group NOK in millions 2011 2010 Change in projected benefit obligation 1)
Projected benefit obligation as of 1 January service cost interest cost Actuarial (gains) and losses Curtailments, settlements and past service cost Acquisitions and sale benefits paid/paid-up policies Translation difference Benefit obligations as of 31 December 6 039 394 256 675 22 (9) (187) 5 7 195 5 783
6 039 Change in plan assets
Fair value of plan assets as of 1 January Actual return on plan assets Curtailments and settlements Acquisitions and sale Pension contribution benefits paid/paid-up policies Translation difference Fair value of plan assets as of 31 December
Funded status at the end of the year...
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This document was uploaded on 03/21/2014.
- Spring '14