Page 59 - Mantena Annual report 2019

NOTE 10 - PENSION COSTS, ASSETS AND LIABILITIES
General
The Group has pension schemes for its employees. The following is a more detailed description of the type of schemes the companies in Norway and Sweden have, and how these are organised.
Pension scheme Sweden
All of the Group’s employees in Sweden have pension rights as described below and the company’s liabilities are financed in multi-enterprise plans.
The scheme is a multi-enterprise plan, and the employer is responsible for the benefits until they are covered by payments. According to the Swedish Financial Accounting Standards Council, this is a defined-benefit scheme.
PENSION SCHEME, NORWAY
Dissolution of defined-benefit plan
The company has withdrawn its employees from the defined- benefit pension scheme in the Norwegian Public Service Pension Fund (SPK) as of 31.12.2018, except for persons receiving disability and sickness payments. All employees will have deferred entitlements in the SPK when they leave the scheme, and will enter a new defined-contribution scheme from 2019.
The balance in the Norwegian Public Service Pension Fund was calculated in 2019 and the sum of MNOK 491.3 paid out, excluding employer’s national insurance contributions.
Persons receiving disability and sickness payments will remain in the Norwegian Public Service Pension Fund, and the scheme has been closed. Based on actuarial calculations, a liability equal to MNOK 23.1 has been posted for these employees. There will be some uncertainty as to the liability at the time when they are eventually withdrawn from the SPK.
The remaining members of the defined-benefit pension schemes in the Norwegian Public Service Pension Fund have been granted the right to defined future benefits. These are mainly dependent on the number of qualifying years, the salary on retirement and the amount of the benefits from the National Insurance scheme.
Defined-contribution pension scheme
Since 01.01.2019, a defined-contribution pension scheme has been implemented in the company.
The company’s defined-contribution scheme is organised in accordance with the Norwegian Act on Defined-Contribution Pensions. The scheme covers all employees.
Accounting for the AFP scheme
When the pension scheme in the Norwegian Public Pension Fund was closed, the company also withdrew from the contractual early retirement pension scheme (AFP) from 31.12.2018. On the same date, the company entered into the private AFP scheme. The scheme is therefore recognised as a defined-benefit scheme.
Occupational pension
On 31.12.2018, the company implemented an occupational pension scheme for older employees who could not be enrolled in a private AFP scheme.
This relates to employees born before 1964, and assumes an early retirement rate of 81.0%.
In the financial statements as at 31.12.2019, MNOK 390.9 has been allocated for future payments related to the occupational pension scheme.
The occupational pension has a fixed term for the company, with payments due in the period 2019-2025.
Support to meet the regulatory obligation from closing the pension scheme in the Norwegian Public Service Pension Fund The company has received grants paid from the State at the Ministry of Transport and Communications related to meeting the regulatory obligations in the Norwegian Public Service Pension Fund. Payments equal to MNOK 213.9 were received in 2019.
Support for transitional arrangements for older employees after the closure of pension scheme in the Norwegian Public Service Pension Fund
The company is entitled to government support from the Ministry of Transport and Communications for a transitional scheme for older employees following the dissolution of the pension scheme in the Norwegian Public Service Pension Fund and transition to the occupational pension and private AFP scheme.
Approved support amounted to MNOK 320, of which MNOK 290.5 has been taken to profit/loss in connection with the dissolution of the defined-benefit scheme in the Norwegian Public Service Pension Fund from 31.12.2018.MNOK 29.5 of approved support is related to a compensation scheme that was been taken to profit/loss in 2018. This will be recognised in the future, while employees who are still in work accrue entitlements.
Mantena Group
Annual report 2019 59