22 – Emplyee benefits
The liability in respect of the defined benefit plans can be analysed as follows:
| (€ million) |
2008 |
2007 |
|
Assets |
Liabilities |
Assets |
Liabilities |
| Present value of unfunded obligations |
– |
– |
– |
0.2 |
| Present value of funded obligations |
– |
6.5 |
1.9 |
6.7 |
| Fair value of plan assets |
– |
-6.5 |
-1.8 |
-5.6 |
| Present value of net obligations |
– |
– |
0.1 |
1.3 |
| Unrecognised actuarial gains and losses |
– |
0.8 |
-0.2 |
-0.2 |
| Recognised liability for defined benefit obligations |
– |
0.8 |
-0.1 |
1.1 |
Corio has a number of defined benefit plans. Stichting Pensioenfonds ABP (‘ABP’) is a pension provider for a number of Corio employees. This plan qualifies as a multi-employer defined benefit plan, with a fixed contribution. ABP is, however, unable to extract details of the benefits and obligations for each company. The plan is therefore not included in the employee benefit calculation and is instead accounted for as a defined contribution plan, with actual expenses recognised as such. In 2008, the contributions to ABP concerning the pension plan were € 0.8 million (2007: € 0.8 million).
The existing pension scheme for Corio’s employees in the Netherlands was converted into a defined contribution plan on 1 January 2007. This means that Corio is no longer required to recognise a liability for those employees who were employed by Corio and are covered by this plan.
The plan assets do not include shares issued by the Company or investments in the Company’s property portfolio.
Movements in the net pension liability were as follows:
| (€ million) |
2008 |
2007 |
|
Assets |
Liabilities |
Assets |
Liabilities |
| Net liability as at 1 January |
-0.1 |
1.1 |
-0.2 |
1.0 |
| Contributions paid |
– |
-0.5 |
– |
-0.1 |
| Net benefit expense |
0.1 |
0.2 |
0.1 |
0.2 |
| Net liability as at 31 December |
– |
0.8 |
-0.1 |
1.1 |
Net benefit expense
| (€ million) |
2008 |
2007 |
|
Assets |
Liabilities |
Assets |
Liabilities |
| Administrative expenses |
0.1 |
0.5 |
0.2 |
0.4 |
| Expected return on plan assets |
– |
-0.3 |
-0.1 |
-0.2 |
|
0.1 |
0.2 |
0.1 |
0.2 |
Principal actuarial assumptions as at the balance sheet date
| (expressed as weighted averages) |
2008 |
2007 |
|
Assets |
Liabilities |
Assets |
Liabilities |
| Discount rate as at 31 December |
– |
5.6% |
5.5% |
5.5% |
| Expected return on plan assets as at 31 December |
– |
3.5% |
3.3% |
3.2% |
| Future salary increases per annum |
– |
n/a |
n/a |
n/a |
| Future pension increases per annum |
– |
2.0% |
1.0% |
2.0% |
The Projected Mortality Table 2005-2050 with the age rated down 1 year, issued by the Actuarial Association, has been used for the actuarial calculations. The discount rate is based on the annual yields of 10-year AA corporate bonds according to iBoxx.
Source: Annual Report 2008, Chapter Financial Statements, page 170 (PDF, 179 kB)
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