Boskalis Annual Report 2020

120 120

CHARGED TO CONSOLIDATED STATEMENT OF

DEFINED BENEFIT OBLIGATION

UNFUNDED PENSION LIABILITIES

OTHER COMPREHENSIVE INCOME

FAIR VALUE PLAN ASSETS

SURPLUS/ DEFICIT (-)

PROFIT OR LOSS

TOTAL

178,923

150,683

- 28,240

- 4,555

- 32,795

Balance as at 1 January 2019

Current service expenses

375

- -

- 375

- 52 - 77

- 427

427

Interest expenses on obligation Net-contributions from the Group

1,797

- 1,797 2,444

- 1,874 2,444

1,874

- -

2,444

- -

Return on plan assets Net actuarial results

573

573

573

- 573

22,014 - 1,765 - 97,849

14,860 - 1,765 - 97,849

- 7,154

- 400

- 7,554

7,554

Benefits paid

- -

299

299

Settlement of UK pension fund Foreign currency exchange rate differences and other changes

-

-

5,576

5,655

79

-

79

- 69,852

- 76,082

- 6,230

- 230

- 6,460

1,728

7,554

Total movement

109,071

74,601

- 34,470

- 4,785

- 39,255

Balance as at 31 December 2019

Limitation on net plan assets as at 1 January Movement in limitation net plan assets Limitation on net plan assets as at 31 December

-

- 268 - 268

268

Balance as at 31 December 2019 after limits on net plan assets

- 39,523

Total result defined benefit pension plans

9,550

1,728

7,822

ANNUAL REPORT 2020 – BOSKALIS FINANCIAL STATEMENTS 2020 A NUAL REPORT 2020 -- BOSKALIS FI ANCIAL S AT MENTS 20 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. Dutch multi-employer pension funds Some of the Dutch staff participate in one of five industry-wide multi-employer pension funds, all within the framework of the Dutch Pension Act as referred to above, of which Bedrijfstak Pensioenfonds Waterbouw is the only one with a proportionately significant premium contribution by Boskalis of 19% (2019: 19%). As at 31 December 2020 the Bedrijfstak Pensioenfonds Waterbouw had a coverage ratio of 105% (2019: greater than 112%).