Scania Annual Report 2011

113
NOTE 17 Provisions for pensions and similar commitments
The Group’s employees, former employees and their survivors may be
included in both defined-contribution and defined-benefit plans related
to post-employment compensation. The plans include retirement
pension s, survivor pensions, health care and severance pay.
The commitment that is recognised in the balance sheet stems from
the defined-benefit plans. The largest plans are found in Sweden, Brazi l
and Germany, among other countries. The plans are safeguarded via
reinsured provisions in the balance sheet, foundations and funds.
Calcula tions are performed according to the “Projected Unit Credit
Method”, using the assumptions presented in the table below.
In the case of some of the Group’s defined-benefit multi-employer
plans, sufficient information cannot be obtained to calculate Scania’s
share in these plans. They have thus been accounted for as definedcontribution.
In Scania’s case, this applies to the Dutch fund Pensioenfonds
Metaal en Techniek, which is administered via MN Services,
and Bedrijfstakpensioenfonds Metalektro, which is administered via
PVF Achmea, as well as the portion of the Swedish ITP occupational
pension plan that is administered via the retirement insurance company
Alecta. Most of the Swedish plan for salaried employees (the collectively
agreed ITP plan), however, is accounted for by provisions in the balance
sheet, safeguarded by credit insurance from the mutual
insurance company Försäkringsbolaget PRI Pensionsgaranti, which
also administers the plan.
Premiums to Alecta amounted to SEK 46 m. (267 and 56, respectively).
A surplus or deficit at Alecta may mean a refund to the Group or
lower or higher future premiums. At year-end 2011, Alecta’s surplus, in
the form of a collective consolidation level, amounted to 113 (146 and
141, respectively) percent. The collective consolidation level consists
of the market value of Alecta’s assets as a percentage of its insurance
obligations calculated according to Alecta’s actuarial assumptions.
In the Dutch plans, both companies and employees contribute
to the plan. The companies’ premiums to MN Services amounted to
SEK 30 m. (29 and 28, respectively) and to PVF Achmea SEK 33 m.
(38 and 50, respec tively). The consolidation level amounted to 89 percent
(96 and 101, respectively) for MN Services. PVF Achmea had an
A+ /Stable ratin g from Standard & Poors for 2011, (A+/Stable rating for
2010 and A+/Negative rating for 2009). PVF Achmea did not disclose
its consolidation level for 2010 and 2009.
Scania’s forecasted disbursement of pensions related to definedbenefit
plans, both funded and unfunded, is SEK 225 m. for 2012
(242 for 2011 and 250 for 2010, respectively).
Expenses related to
pension obligations
Expenses related to
health care benefits
Expenses related to
other obligations
Expenses for pensions and other defined-benefit
obligations recognised in the income statement 2011 2010 2009 2011 2010 2009 2011 2010 2009
Current service expenses –165 –214 –264 –7 –7 –6 –3 –2 –3
Interest expenses –250 –271 –250 –41 –39 –31 –6 –7 –6
Expected return on plan assets 71 70 62 1 – – 8 8 6
Past service expenses 35 6 –5 – – – – – 0
Net gains (+) and losses (–) due to curtailments
and settlements 2 39 4 – – – – – –
Curtailment in the valuation of net assets – 0 6 – – – – – –
Total expense for defined-benefit obligations
recognised in the income statement –307 –370 –447 –47 –46 –37 –1 –1 –3
For defined-contribution plans, Scania makes continuous payments to public authorities and
independent organisations, which thus take over obligations towards employees. The Group’s
expenses for defined-contribution plans amounted to SEK 639 m. (713 and 565, respectively)
during 2011.
Pension expenses and other defined-benefit payments are found in the income statement
under the headings “Research and development expenses”, SEK 54 m. (88 and 105, respectively),
“Cost of goods sold”, SEK 44 m. (58 and 69, respectively), “Selling expenses”, SEK 35 m.
(51 and 83, respectively) and “Administrative expenses”, SEK 4 m. (7 and 8, respectively). The
interes t portion of pension expense is recognised as an interest expense, and return on plan
assets is recognised as interest income.
financial reports Scania 2011