Note Provisions for pensions and similar obligations
86
2018 2017
Total pension costs recognized in the consolidated income statement are as follows: Pension costs
Total costs for defined contribution plans including employer's contribution 83 76
Total 83 76
Movement in the net liability recognized in the consolidated balance sheet: Defined benefit plans
Net liability at start of year 164 134
Net cost recognized in the income statement 30 28
Benefits paid -10 -10
Disbursement of funds from the foundation 10 10
Contributions by employer to funded obligations -25 -25
Revaluation of defined benefit pension plans based on changed assumptions 28 15
Exchange rate differences on foreign plans 2 2
Reclassifications 7 10
Net liability at year-end 206 164
Asset distribution in foundation on reporting date (%):
Fixed income 42 39
Shares 22 21
Properties 6 5
Alternative investments 30 35
The entire pension obligation in the Netherlands concerns alternative investments.
The principal actuarial assumptions used on reporting date (%):
The Netherlands
Discount rate 1.85 1.85
Future annual salary increases 2.35 2.35
Future annual pension increases 1.00 1.00
Employee turnover 4.00 4.00
Sweden
Discount rate 2.60 2.90
Future annual salary increases 3.00 2.80
Future annual pension increases 3.00 2.80
Employee turnover 5.00 5.00
Charges for plans for retirement benefits are expected to amount to SEK 29 million in the 2019 financial year.
The weighted average term of the pension obligation is 17–19 years.
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