25 JOTUN GROUP Note 4 continues PENSIONS AND OTHER LONG-TERM EMPLOYEE BENEFITS As a rule, parameters such as wage growth, growth in G and inflation are set in accordance with recommendations in the various countries. The mortality estimate is based on up-to-date mortality tables for the various countries (K2013BE in Norway and S1PxA (YoB) in UK). Accounting of actuarial losses and gains All actuarial losses and gains related to pensions are presented under other comprehensive income in the income statement. Pension plan assets Pension plan assets are mainly in bonds and shares. The estimated return will vary depending on the composition of the various classes of assets. The actual return and breakdown of pension plan assets may be seen in the notes below. Contributions to pension plan assets during 2015 is expected to be approximately NOK 9 million. Breakdown of pension plan assets (fair value) as of 31 December 2014 2013 Cash and cash equivalents in % 0.2 0.3 Bonds in % 49.6 46.2 Shares in % 45.7 49.2 Property in % 4.5 4.3 Total pension plan assets 100 100 UK Actuarial assumptions 2014 2013 2014 2013 Discount rate in % 2.7 3.3 3.7 4.5 Expected return in % 2.7 3.3 3.7 5.4 Wage adjustment in % 3.0 - 3.25 3.0 - 3.75 3.1 3.5 Inflation / increase in social security basic amount (G), in % 3.0 3.5 2.1 2.5 Pension adjustment in % 0.5 - 3.25 0.5 - 3.75 3.5 3.5 2014 Norway Indonesia 2013 Discount rate in % 8.0 9.0 Expected return in % 8.0 9.0 Wage adjustment in % 9.0 10.0 Inflation / increase in social security basic amount (G), in % 5.0 5.0
Jotun Annual Report 2014
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