Boskalis_Annual Report_2017

108 ANNUAL REPORT 2017 – BOSKALIS FINANCIAL STATEMENTS 2017 ANNUAL REPORT 2017 -- BOSKALIS FINANCIAL STATEMENTS 2017 108 Balance as at 1 January 2016 Current service expenses Interest expenses on obligation Contributions received from the Group Return on plan assets Net actuarial results Benefits paid Settlement and curtailment gains PGB and Dutch pension funds Foreign currency exchange rate differences and other changes Total movement Balance as at 31 December 2016 Limits on net plan assets as at 1 January Movement in limit net plan assets Total result defined benefit pension plans

CHARGED TO CONSOLIDATED STATEMENT OF

DEFINED BENEFIT OBLIGATION

UNFUNDED PENSION LIABILITIES

OTHER COMPREHENSIVE INCOME

FAIR VALUE PLAN ASSETS

SURPLUS/ DEFICIT (-)

PROFIT OR LOSS

TOTAL

753,035

734,794

- 18,241

- 5,175

- 23,416

36,904 17,384

-

- 36,904 - 17,384 39,896 16,895 - 5,069

- 31

- 36,935 - 17,487 39,896 16,895 - 5,288

36,935 17,487

-

- 103

- -

39,896 16,895 33,618 - 20,481

- -

- 16,895

38,687 - 20,481

- 219

5,288

-

331

331

- 641,246

- 627,986

13,260

-

13,260

- 13,260

- 23,903 - 592,655

- 23,540 - 581,598

363

55 33

418

-

11,057

11,090

24,267

5,288

160,380

153,196

- 7,184

- 5,142

- 12,326

- 11,913

768

- 768

Limits on net plan assets as at 31 December

- 11,145

Balance as at 31 December 2016 after limits on net plan assets

- 23,471

28,787

24,267

4,520

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, which is qualified as a defined contribution plan, for the majority of its Dutch staff with Pensioenfonds Grafische Bedrijven, a multi-employer fund. The annual premium contribution by the Group is determined by PGB, based on the actuarial cost of purchasing pension rights on an annual basis. The Group has no obligation to cover any plan deficits, nor are there any specific separate plan assets dedicated to the Group in this pension plan that are managed by PGB. After payment of the annual premium, the Group has no obligation to pay for additional contributions or higher future premiums in the event of a shortfall at PGB, nor if the plan or the fund is terminated. Furthermore, the Group has no entitlement to any surplus in the PGB pension fund. Future cash flows are limited to the payment of future premiums for purchasing (new) rights for the years to come. The premium is influenced by the usual, underlying actuarial assumptions, expected returns and agreed contribution ceiling. Besides Boskalis, multiple other companies have also arranged their pension plans with PGB. The Group has no direct involvement in the governance of PGB. PGB does not hold specific, segregated pension assets dedicated to the Group. The share of the Boskalis pension plans in total liabilities and assets at PGB is limited. Settlement of the PGB defined benefit plan in 2016 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. In December 2016, Boskalis reached agreement with the Works Council and the PGB Pension Fund on plan