JOTUN A/S
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3 Pensions and other long-term employee benefits
Jotun A/S has both defined contribution and defined benefit pension plans. The majority of the company’s pension plans are defined
contribution plans, whereby the company’s obligation is limited to annual contributions to the employees’ pension plans. Costs related to
the defined benefit pension plans account for less than 5 per cent of total pension costs in 2018, as seen from the table below.
(NOK THOUSAND) 2018 2017
Pension costs defined contribution plans and other severance schemes 73 746 80 456
Pension costs defined benefit plans 3 586 3 182
Total pension costs recognised in the income statement, ref. note 2 77 332 83 638
Actuarial gain / loss (–) recognised in other comprehensive income (net of tax) 2 246 123
The defined benefit schemes were replaced by defined contribution plans in 2004. Net pension obligations as of 31 December 2018 are
primarily related to previous early retirement schemes for Jotun Group’s senior executives.
Other severance schemes are obligations related to operating pension schemes for employees with an annual basic salary and pension
base exceeding 12 times the basic amount (G).
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 432 2 032 –69 611 –77 095 –69 179 –75 063
Recognised in the income statement
Pension earnings for the year – –30 –2 339 –2 169 –2 339 –2 199
Interest income / cost (–) – – –1 245 –1 003 –1 245 –1 003
Expected return on plan assets –2 20 – – –2 20
Recognised in the income statement –2 –10 –3 584 –3 172 –3 586 –3 182
Actuarial gain / loss (–) recognised in
other comprehensive income –6 –1 566 –2 874 1 406 –2 880 –160
Other movements
Benefits paid – –69 8 099 9 243 8 099 9 174
Contribution paid to pension schemes 28 45 4 6 32 51
Transfer to / from schemes with net pension liabilities – – –10 486 – –10 486 –
Net pension obligation defined benefit plans 452 432 –78 452 –69 611 –78 000 –69 179
Other severance schemes – – –64 086 –67 892 –64 086 –67 892
Balance as of 31 December 452 432 –142 538 –137 503 –142 086 –137 071
Breakdown of net pension liability in funded and unfunded schemes
(NOK THOUSAND) 2018 2017
Present value of funded pension obligations –222 –199
Pension plan assets 452 432
Net funded pension assets 230 233
Present value of unfunded pension obligations –142 316 –137 304
Capitalised net pension assets / liabilities (–) –142 086 –137 071