Boskalis_Annual_Report_2016

106

CHARGED TO CONSOLIDATED STATEMENT OF

UNFUNDED PENSION LIABILITIES

OTHER COMPREHENSIVE INCOME

DEFINED BENEFIT OBLIGATION

SURPLUS/ DEFICIT (-)

FAIR VALUE PLAN ASSETS

PROFIT OR LOSS

TOTAL

747,808

691,932

- 55,876

- 5,316

- 61,192

Balance as at 1 January 2015

Current service expenses Past service expenses

41,921

- - -

- 41,921

- 25

- 41,946

41,946

- 224

224

-

224

- 224

Interest expenses on obligation

18,067

- 18,067 30,027 16,609 50,439

- 97

- 18,164 30,027 16,609 50,379

18,164

Contributions received from the Group

- -

30,027 16,609 10,213 - 18,991

- -

Return on plan assets Net actuarial results

- 16,609

- 40,226 - 18,991

- 60 323

- 50,379

Benefits paid

-

323

Foreign currency exchange rate differences and other changes

4,680 5,227

5,004

324

-

324

42,862

37,635

141

37,776

43,277

- 50,379

Total movement

753,035

734,794

- 18,241

- 5,175

- 23,416

Balance as at 31 December 2015

Limits on net plan assets as at 1 January

- 7,088 - 4,825 - 11,913

Movement in limit net plan assets

4,825

Limits on net plan assets as at 31 December

Balance as at 31 December 2015 after limits on net plan assets

- 35,329

Total result defined benefit pension plans

- 2,277

43,277

- 45,554

In the Netherlands Boskalis has arranged a pension plan for a large part of its Dutch staff with the Pensioenfonds Grafische Bedrijven (PGB), while other employees in the Netherlands participate in the pension plans of five Dutch multi-employer pension funds or in one of the Dutch insured pension plans. In the Netherlands the tasks and responsibilities of employer, employee and pension provider in relation to pensions are set out in the Dutch Pension Act. The Pension Act stipulates the requirements and conditions that pension plans must comply with, including the requirement of integrating the plan into either a recognized pension fund or with a recognized pension insurance company and also that rights granted must be immediately funded by the employer. The law also sets requirements for the amounts of equity that pension providers should maintain. Compliance with the law is supervised by the Dutch Central Bank (DNB) and the Dutch Financial Markets Authority (AFM). In addition, the Group has a number of foreign pension plans, of which the largest is in the United Kingdom. Pension plan at Pensioenfonds Grafische Bedrijven The Group has arranged its pension plan for the majority of its Dutch staff with Pensioenfonds Grafische Bedrijven, a multi-employer fund. Until 31 December 2016 active participants that commenced employment with Boskalis before 1 January 2015 had a pension plan with unconditional indexation on the basis of indexation granted by the Group, which is not linked to indices. Active participants that commenced employment with Boskalis after 1 January 2015 and inactive participants have a plan with a conditional right to indexation, granted by PGB. Settlement of the PGB defined benefit plan In December 2016, Boskalis reached agreement with the Works Council and the PGB Pension Fund on plan amendments for its Dutch staff participating in the PGB pension plans. The plan amendments concern the termination of the unconditional indexation right for participants employed by Boskalis before 1 January 2015. Indexation rights are harmonized with the other participants within PGB pension plans. The participants concerned receive compensation in the form of a one-off increase in their accrued pension rights as at 31 December 2016. Also, Boskalis and PGB amended and clarified their agreement in certain areas. After these changes the pension plans were aligned and now qualify as a defined contribution plan. As a result, a net settlement gain of EUR 5 million before tax was recognized at the end of December 2016 in the statement of profit or loss, comprising the release of the net defined obligation to the statement of profit or loss amounting to EUR 22 million and the charge of EUR 17 million resulting from the one-off increase in accrued rights as mentioned above. In addition, the actuarial reserve recognized in equity was released to other reserves. ANNUAL REPORT 2016 – BOSKALIS FINANCIAL STATEMENTS 2016