JOTUN GROUP
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5 Pensions and other long-term employee benefits
The Group companies provide various retirement plans in accordance with local regulations and practices in the countries in which they
operate.
The majority of the Group’s pension plans are defined contribution plans, whereby the company’s obligation is limited to annual
contributions to the employees’ pension plans. The Group also has defined benefit pension plans. Costs related to these plans account
for less than 4 per cent of total pension costs in 2018.
Summary of pension costs
(NOK THOUSAND) 2018 2017
Pension costs defined contribution plans and other severance schemes 177 985 181 494
Pension costs defined benefit plans 17 372 12 883
Total pension costs recognised in the income statement, ref. note 4 195 357 194 377
Actuarial gain / loss (–) recognised in the
statement of other comprehensive income (net of tax) 8 171 13 836
The Jotun Group has defined benefit plans in a limited number of countries, including Norway, the UK, Indonesia and in certain countries
in South East Asia and the Middle East. In Norway, the defined benefit schemes were replaced by defined contribution plans in 2004,
and the defined benefit plan in the UK was closed for new members in 2012.
Defined benefit plans in Norway and Indonesia account for around 64 per cent and 22 per cent, respectively, of the Group’s net pension
obligation as of 31 December 2018. In Norway, net pension obligations are primarily related to previous early retirement schemes for
Jotun Group’s senior executives. In certain countries in South East Asia and the Middle East, such as Indonesia, Thailand and Oman, there
are pension schemes based on a final salary principle in accordance with local regulations. These are included in net pension obligations.
Other severance schemes comprise mainly obligations related to operating pension schemes for employees in the Norwegian companies
with an annual basic salary and pension base exceeding 12 times the basic amount (G). This accounts for 84 per cent of the other
severance scheme obligation.
Schemes with net pension obligation
(NOK THOUSAND) Pension plan
Defined benefit
Net pension
assets
obligations
obligations
2018 2017 2018 2017 2018 2017
Balance as of 1 January 369 641 353 598 –502 441 –511 105 –132 798 –157 507
Translation difference at the beginning of the period 1 125 19 277 –390 –21 909 735 –2 632
Recognised in the income statement
Pension earnings for the year – – –14 278 –8 494 –14 278 –8 494
Interest income / cost (–) – – –13 783 –14 463 –13 783 –14 463
Expected return on pension plan assets 9 852 10 074 – – 9 852 10 074
Recognised in the income statement 9 852 10 074 –28 061 –22 957 –17 372 –12 883
Actuarial gain / loss (–) recognised in
other comprehensive income –15 331 7 179 25 436 10 054 10 106 17 233
Other movements
Benefits paid –14 871 –32 421 29 036 43 460 14 166 11 039
Contribution paid to pension schemes 15 450 3 270 – – 15 450 3 270
Settlements – 8 644 – – – 8 644
Transfer to / from schemes with net pension liabilities – – –10 486 – –10 486 –
Net pension obligation defined benefit plans 365 866 369 641 –486 906 –502 441 –121 040 –132 798
Other severance schemes – – –76 649 –81 923 –76 649 –81 923
Balance as of 31 December 365 866 369 641 –563 555 –584 364 –197 688 –214 721