Note 30 Pensions
Defined benefit pension plans
Defined benefit plans consist of the Swedish ITP 2 Plan for Salaried Staff which is managed through insurance with Alecta. In 2016 the defined benefit pension plan in Norway was renegotiated and is now reported as a defined contribution plan. As Alecta cannot submit the information required to account for the ITP 2 plan as a defined benefit plan, this is entered as a defined contribution plan (see below). Since the amount of the defined benefit plans in addition to Alecta’s is insignificant only a few facts are given below.
| Group, MSEK | 2016 | 2015 |
| Present value of fully or partially funded obligations | – | 9 |
| Total present value of obligations | – | 9 |
| Fair value of plan assets | – | -10 |
| Net reporting of defined benefit plans recognized as interest-bearing long-term receivables | – | -1 |
Changes in present value of obligations for defined benefit plans
| Group, MSEK | 2016 | 2015 |
| Net obligations for defined benefit plans as of 1 January | 9 | 10 |
| Settlement | -10 | – |
| Translation differences | 1 | -1 |
| Obligations for defined benefit plans as of 31 December | – | 9 |
Changes in recognized fair value in the balance sheet for plan assets
| Group, MSEK | 2016 | 2015 |
| Fair value of plan assets as at 1 January | 10 | 10 |
| Settlement | -11 | – |
| Contributions from employer | 0 | 1 |
| Translation differences | 1 | -1 |
| Fair value of plan assets on 31 December | – | 10 |
Expenses recognized in comprehensive income
| Group, MSEK | 2016 | 2015 |
| Expenses recognized in the income statement | 0 | 0 |
| Revaluation of defined benefit pension plans in other comprehensive income | 0 | 0 |
| Total net expense recognized in comprehensive income | 0 | 0 |
Historical information
| Group, MSEK | 2016 | 2015 | 2014 | 2013 | 2012 |
| Present value of defined benefit plan obligations | – | 9 | 10 | 11 | 23 |
| Fair value of plan assets | – | -10 | -10 | – | -8 |
| Net obligations in plan | – | -1 | 0 | 11 | 15 |
ITP 2 defined benefit plan obligations for old age pension and family pension obligations for salaried staff in Sweden are managed through insurance from Alecta. According to a statement from the Swedish Financial Reporting Board, UFR 10 Reporting pension plan ITP 2 which is financed through insurance from Alecta, this is a defined benefit plan that encompasses several employers. For the financial year of 2016 the company did not have the necessary information required to report its proportional share of the plans obligations, plan assets and expenses which has made it impossible to recognise this plan as a defined benefit plan. Therefore the ITP 2 pension plan which is secured through insurance from Alecta is reported as a defined contribution plan. Premiums for the defined benefit old age and family plans are calculated individually taking into account salary, previously earned pension and anticipated remaining employment period. Anticipated premiums for the next report period for ITP 2 insurance that are covered by Alecta amount to SEK 139 million (142). The Group’s share of total premiums for the plan and the Group’s share of the total number of active members of the plan are 0.94 percent (0.66) respective 0.63 percent (0.60).
The collective consolidation level is made up of the market value of Alecta’s assets as a percentage of the insurance obligations calculated in accordance with Alecta’s insurance methods and adjustment assumptions, which are not in accordance with IAS 19. Normally the collective consolidation level is permitted to vary between 125 and 155 percent. If Alecta’s collective consolidation level is less than 125 percent or exceeds 155 measures must be taken aimed at returning the consolidation level to the normal interval. If the consolidation level is low one measure may be raising the agreed price for new subscriptions and expanding existing benefits. If the consolidation level is high one measure may be implementing premium reductions. At the end of 2016, Alecta’s surplus in the form of the collective consolidation level amounted to 149 percent (153).
Defined contribution plans
The Group has defined contribution plans which are entirely paid for by the companies. Payments to these plans are made on a current basis according to the rules of each plan.
| Group | Parent company | |||
| MSEK | 2016 | 2015 | 2016 | 2015 |
| Expenses of defined contribution plans | 614 | 556 | 33 | 30 |
| Of which ITP 2 plans financed in Alecta | 150 | 129 | 5 | 4 |