Audited by PwC

Note 20 - Provisions for pensions and similar obligations

The Group has entered into pension agreements with a significant number of its employees. Most of the pension plans are defined contribution plans, and only a small number are defined benefit plans. A health insurance plan has also been established in the US.

Some of the pension plans are funded by payments from Group companies. However, some plans are not funded, and a liability has been recognized in the balance sheet for these plans.

As well as pension agreements, a few countries also have plans covering other long-term employee benefits that meet local requirements for insuring employees in the event of termination, etc.


2008 2007
    DKK million  DKK million  
Amounts recognized in the income statement re defined benefit pension plans:
Current service costs
Interest costs
Expected return on plan assets (3) (3)
Service costs relating to changes to plans    
Total amount recognized in the income statement re defined benefit plans
The actual return on plan assets was a loss of DKK 8 million (a gain of DKK 1 million in 2007).
2008 2007
    DKK million  DKK million  
Amounts recognized in the balance sheet re defined benefit pension plans:
Present value of fully/partly funded obligations 51  63 
Fair value of plan assets   (54) (75)  
(3) (12)
Present value of unfunded obligations 16  18 
Unrecognized actuarial gains/(losses)   - 
Unrecognized part of plan assets    
Liability recognized in the balance sheet 16  16 

2008 2007
    DKK million  DKK million  
Change in the net liability:
Opening net liability 16  15 
Currency translation   -  (1)
Total pension costs expensed in the income statement
Contributions paid (5) (6)
Other changes      -   
Closing net liability 16  16 
The actuarial valuations of the most significant defined benefit plans are based on the following assumptions:
    2008 2007  
Discount rates 4.6% 3.3%
Expected rate of return on plan assets 4.3% 4.3%
Future salary increases 1.3% 1.3%
Annual increase in healthcare costs 7.3% 7.3%