Boskalis_Annual_Report_2016

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The group’s largest company pension fund in the United Kingdom is managed by BKW Trustee Company Limited. The management of the Trust company is partly appointed by Boskalis and partly elected by plan participants. The investment policy is geared to the fact that it is a closed arrangement relating primarily to fixed income. Pension law in the United Kingdom includes the requirement to index pension plans. In 2015 the required tri-annual valuation was conducted, which determined the required annual contributions to this pension fund. There is no requirement to immediately and fully cover an existing deficit in this pension plan. The expected contribution to this fund for the coming year and for the ongoing review period amounted to GBP 1.2 million (2015: GBP 1.2 million) and GBP 2.1 million (2015: GBP 3.3 million) respectively. Settlement and termination of two other pension plans 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. Following the changes in the pension plans disclosed above, the contribution of the Group’s European harbor towage activities to the new joint venture KOTUG SMIT Towage (see note 5.3) and the sale of SMIT Amandla Marine (see note 5.4), 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 (2016: 3.55%; 2015: 3.10%). 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 disclosures regarding 2015 mainly related to the former defined benefit plans of the Group, that were settled and converted into defined contribution plans and were no longer included in the following disclosures for 2016: the composition of plan assets; the accumulated actuarial gain and losses; and the sensitivity for changes in the applied assumptions.

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

Other pension plans: Equities ANNUAL REPORT 2016 – BOSKALIS FINANCIAL STATEMENTS 2016 Bonds Real estate Cash (non-interest-bearing) Other receivables and payables Unquoted investments TOTAL PLAN ASSETS

31 DECEMBER 2016

2015

527,999

-

Actuarial valuation of the inseparable share in PGB plan assets

21,259 129,536

34,251 170,691

400

396

205,342

151,191

Investments quoted in active markets

1,218

1,226

779

235

1,453

2,005

734,794

153,196

As at 31 December 2016 and 31 December 2015 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 21 years (2015: 21 years).