24. Employee benefits
(in thousands of euros) | Post-employment |
| Other long-term employee benefits | Termination | Total |
---|---|---|---|---|---|
Carrying amount as at 31 December 2018 |
|
|
|
|
|
Liability defined contribution | 26,166 |
| 16,518 | 7,781 | 50,465 |
Liability in the balance sheet | 26,166 |
| 16,518 | 7,781 | 50,465 |
|
|
|
|
|
|
Carrying amount as at 31 December 2017 |
|
|
|
|
|
Liability defined contribution | 24,311 |
| 16,177 | 1,649 | 42,137 |
Liability in the balance sheet | 24,311 |
| 16,177 | 1,649 | 42,137 |
The balance in the provision for termination benefits at the end of 2018 includes among others the costs Schiphol Group expects to incur in respect of restructurings in a few of its departments. The restructurings were announced in 2018 and implementation is ongoing or will commence in 2019.
Post-employment benefits consist of pension plans and job-related early retirement benefits. Other long-term employee benefits consist of long-service awards, disability benefit supplements and sustainable employment budget. The movements in post-employment benefit liabilities during the year were as follows:
(in thousands of euros) | 2018 |
| 2017 |
---|---|---|---|
Carrying amount as at 1 January | 24,311 |
| 23,668 |
|
|
|
|
Total net benefit expense for the year | 1,264 |
| 1,339 |
Benefits paid during the year | -1,314 |
| -1,222 |
Actuarial changes presented in other comprehensive income | 1,845 |
| 704 |
Other movements | 60 |
| -178 |
Total movements in the year | 1,855 |
| 643 |
|
|
|
|
Carrying amount as at 31 December | 26,166 |
| 24,311 |
The table below gives an overview of actuarial assumptions and estimates applied. Given the minimal impact, a significant variance in the balance sheet position as a result of other assumptions is unlikely.
Actuarial assumptions and estimates
| 31 December 2018 |
| 31 December 2017 |
---|---|---|---|
Discount rate | 1.30% - 1.40% |
| 1.30% - 1.50% |
Return on plan assets | 1.50% |
| 1.50% |
Inflation | 2.00% |
| 1.50% |
General salary increase | 1.50% |
| 1.50% |
Life expectancy | Forecast table 2017 with adjustment |
| Forecast table 2016 with adjustment factors geared to the company’s average salary level |
Individual pay rises, depending | 3.00% (to age 36), |
| 3.00% (to age 36), |
Age difference | Men 3 years older than female partners |
| Men 3 years older than female partners |
Incapacity risk | In and outflow of WIA, based on 2006 |
| In and outflow of WIA, based on 2006 |
Termination probability, depending on age | 4.20% (age 35) to 0.10% (age 64) |
| 4.20% (age 35) to 0.10% (age 64) |
Continued service probability (job-related early retirement scheme) | 100% |
| 100% |
Schiphol Group’s pension plan is administered by Algemeen Burgerlijk Pensioenfonds (ABP). Based on the formal terms of the pension scheme, it qualifies as a defined-contribution plan. Schiphol Group recognises the pension contributions payable to ABP as an expense in the income statement. Further information on this point can be found under Accounting policies.
The ABP pension regulations do not contain any provisions on additional contributions to the fund and/or withdrawals from it in respect of Schiphol Group’s share in surpluses or deficits of the pension fund. Consequently, any surpluses and deficits will only result in changes in the amount of the contributions payable by Schiphol Group in the future and these will depend on the actual and expected financial position of the pension fund as reflected in the funding ratio. The expected contribution payment for 2019 is 30.0 million euros. ABP’s funding ratio was 97.0% as at 31 December 2018 (104.4% as at 31 December 2017).
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