Page 58 - Kitron Annual Report 2011

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Notes to the financial statements Kitron ASA
58
Kitron annual report 2011
Employees in Kitrons ASA are covered by pension plans which give the right to future benefits according to
Norwegian law (Norwegian mandatory service pension act). The plans embraces 11 employees. The plans
comprise defined contribution plans, as well as early retirement schemes (AFP) for some employees.
The new AFP-scheme, in force from 1 January 2011, is a defined benefit multi-enterprise scheme, but is recog-
nised in the accounts as a defined contribution scheme until reliable and sufficient information is available for
the group to recognise its proportional share of pension cost, pension liability and pension funds in the scheme.
The company’s liabilities are therefore not recognised as debt in the balance sheet.
The AFP-liability following the old scheme was recognised in the balance sheet as debt and is recognised as income
in 2010, with the exception of the liability relating to previous employees who are now retirees in this scheme.
The pension obligation at year-end also includes a provision of TNOK 53 (2010: TNOK 70) to cover an ex-
pected payment relating to undercoverage in the former AFP-scheme. The provision has been recognised in the
balance sheet as a pensjon obligation.
Furthermore the pension obligations below include life-long benefits to a former CEO. All pension plans are unfunded.
Defined pension benefit plans
(Amounts in NOK 1000)
2011
2010
Carrying amount of the obligation is determined as follows:
Present value of accrued pension commitments in unfunded benefit plans
6 622
6 378
+/- unrecognised actuarial gains and losses
(517)
(9)
Net commitments in unfunded defined benefit plans
6 105
6 369
Hereof payroll tax on the pension obligation
754
787
Pension costs comprise:
+ Present value of pension earnings for the year
-
9
+ Interest costs
243
254
+ Amortisation actuarial gains and losses
3
(11)
+ Service cost
-
80
- Curtailment of the old AFP scheme
-
(430)
Net pension cost for unfunded plans
246
(98)
Net pension cost for contribution based pension plans
574
425
Net pension costs included in note 3
820
327
The following assumptions have been applied in calculating pension commitments
2011
2010
Discount rate
2.5%
4.0%
Annual pay adjustment
3.5%
3.5%
Annual pension adjustment
3.5%
3.5%
Social scurity tax rate
14.1%
14.1%
Expected contractual pension withdrawals (early retirement scheme)
30%
30%
Note 4 Pension costs, funds and commitments