Kesko's Annual Report 2009

NOTE 20
Kesko financial statements 2009
Pension assets
The Group operates several retirement plans. In Finland, employees' pension insurance is partly arranged with insurance companies
and partly by the Kesko Pension Fund, whose department A granting additional benefits was closed on 9 May 1998. Pension plans
arranged with the Kesko Pension Fund have been treated as defined benefit plans.
As regards foreign subsidiaries, the plan adopted in the Norwegian subsidiary is the only pension plan classified as a defined benefit
plan. The nature of the pension plan in Norway and Norwegian legislation changed during the 2008 accounting period to the
effect that a significant number of the company's employees transferred from the defined benefit plan. At 31 December 2009, the net
debt relating to the defined benefit plan in Norway was €0.4 million (€0.5 million).
The pension plans in other foreign subsidiaires are arranged in accordance with local regulations and practices. They do not contain
significant defined benefit plans.
The defined benefit liability recognised in the balance sheet in respect of the Kesko Pension Fund is determined as follows:
€ million 2009 2008
Present value of funded obligations -525.1 -530.4
Fair value of plan assets 871.6 819.5
Deficit/surplus 346.5 289.1
Unrecognised actuarial gains (-)/losses (+) -31.4 11.1
Net assets (+)/liabilities (-) recognised in the balance sheet 315.2 300.3
The movements of the present value of the obligation are as follows:
Plan obligation at 1 Jan. 530.4 560.6
Current services cost 12.7 15.1
Interest cost 28.6 28.8
Benefits paid -27.7 -27.2
Actuarial gains (-)/losses (+) -24.3 -47.0
Others 5.5
Plan obligation at 31 Dec. 525.1 530.4
The movement in the fair value of plan assets is as follows:
Plan assets at 1 Jan. 819.5 897.0
Expected return on plan assets 54.9 63.2
Contributions to plan 6.8 17.8
Benefits paid -27.7 -27.2
Actuarial gains (-)/losses (+)
Others
18.2 -131.2
Plan assets at 31 Dec. 871.6 819.5
The amounts recognised in the income statement were as follows:
Current service cost -12.7 -15.1
Interest cost -28.6 -28.8
Expected return on plan assets 54.9 63.2
Change -5.5
Actuarial gains (-)/losses (+) 1.2
Total amount recognised in the income statement 8.2 20.5
Changes in net assets recognised in the balance sheet:
Opening balance 300.3 262.1
Income/costs recognised in the income statement 8.2 20.5
Contributions to plan 6.8 17.8
Closing balance 315.2 300.3
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