Boskalis_Annual Report_2017

110 ANNUAL REPORT 2017 – BOSKALIS FINANCIAL STATEMENTS 2017 ANNUAL REPORT 2017 -- BOSKALIS FINANCIAL STATEMENTS 2017 110 Other pension plans: Equities Bonds Real estate Investments quoted in active markets Cash (non-interest-bearing) Other receivables and payables Unquoted investments TOTAL PLAN ASSETS Total result defined benefit plans Income tax Effective return on plan assets

The expected contribution to this fund for the coming year and for the ongoing review period amounted to GBP 0.6 million (2016: GBP 1.2 million) and GBP 0.6 million (2016: GBP 2.1 million) respectively.

Settlement and termination of two other pension plans in 2016 During 2016 two contracts with Dutch insured pension plans reached the end of their contract terms and were not renewed. The plans for the respective staff were transferred, one to PGB and the other to an industry-wide pension fund. Accrued pension rights within these plans will remain with the pension insurers. This resulted in a settlement gain of EUR 6.7 million relating to one - and a curtailment gain of EUR 1.5 million for the other pension plan transferred. As per 2017, the remaining balance of the net defined benefit obligation mainly relates to closed pension plans. The net defined benefit obligation of the aforementioned pension plans in the United Kingdom mainly are determined by expected future inflation (2017: 3.40%; 2016: 3.55%). The other defined pension plan is a closed insured pension plan for which future cash flows are determined on the basis of Group entitlement to excess returns realized by the insurance company and annual guarantee costs provided for in the balance sheet. Both of these results continue to be recognized through the statement of other comprehensive income. Therefore the expected impact of these remaining defined benefit pension plans on future statements of profit or loss is not significant.

The composition of plan assets, excluding the defined benefit plans that were settled in 2016, is as follows:

31 DECEMBER 2017

2016

19,252 129,892

21,259 129,536

-

396

149,144

151,191

1,420

1,226

-

779

1,420

2,005

150,564

153,196

As at 31 December 2017 and 31 December 2016 the plan assets did not include shares issued by Royal Boskalis Westminster N.V.

Pension funds periodically perform asset liability management studies to assess the matching of investment assets with the amount and duration of pension liabilities. Based on the outcome of these studies the nature, mix and duration of assets are regularly adjusted. The average duration of the obligations of the pension plans is about 22 years (2016: 21 years). The table below presents the pension costs from defined benefit pension plans, including the costs recorded in 2016 of plans that were settled in 2016 and which are included in these consolidated financial statements.

2017

2016

10,318

28,787

Settlement and curtailment gains on PGB and Dutch pension funds recognized in the consolidated statement of profit or loss Pension costs for defined benefit pension plans charged to the consolidated statement of profit or loss

-

13,260

- 1,046

- 37,527 4,520 - 1,080 3,440

9,272

Actuarial gains and losses and asset limitation recognized directly in equity

- 1,504

7,768

Actuarial gains and losses and asset limitation recognized directly in equity net of income tax

3,451

50,513