Boskalis_Annual Report_2017

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amendments for its Dutch staff participating in the PGB pension plans. The plan amendments concern the termination of the unconditional indexation right for participants employed by Boskalis before 1 January 2015. Indexation rights are harmonized with the other participants within PGB pension plans. The participants concerned receive compensation in the form of a one-off increase in their accrued pension rights as at 31 December 2016. Also, Boskalis and PGB amended and clarified their agreement in certain areas. After these changes the pension plans were aligned and now qualify as a defined contribution plan. As a result, a net settlement gain of EUR 5 million before tax was recognized at the end of December 2016 in the statement of profit or loss, comprising the release of the net defined obligation to the statement of profit or loss amounting to EUR 22 million and the charge of EUR 17 million resulting from the one-off increase in accrued rights as mentioned above. In addition, the actuarial reserve recognized in equity was released to other reserves. Dutch multi-employer pension funds Some of the Dutch staff participate in one of five industry-wide multi-employer pension funds, all within the framework of the Dutch Pension Act as referred to above, of which Bedrijfstak Pensioenfonds Waterbouw is the only one with a proportionately significant premium contribution by Boskalis of 20% (2016: 20%). As at 31 December 2017 the Bedrijfstak Pensioenfonds Waterbouw had a coverage ratio greater than 105% (2016: greater than 105%). The Group has no direct involvement in the governance of the multi-employer pension funds. Employers’ Associations, of which the Group is a member, designate some of the board members and / or supervisors of the multi-employer pension funds. In addition, the boards also include representatives of employees and retirees, possibly supplemented by one or more independent persons. The pension includes retirement and survivor's pension. These pension funds have indicated they are not able to provide sufficient information for a calculation in accordance with IFRS because there is no reliable and consistent basis to which to attribute the pension obligations, plan assets, and the absolute and relative share of the Group in the fund and to which to allocate income and expenses to the individual member companies of these pension funds. As a result, these defined benefit plans are recognized in these financial statements as a defined contribution plan in accordance with IFRS. In all cases relating to industry-wide multi-employer pension funds, the Group has no obligation whatsoever to pay additional contributions in the case of a deficit in the respective fund, other than paying the annual premium. Nor does the Group have a right to any surpluses in the funds. The premium covers the actuarially determined cost of purchasing the yearly rights for participants. The premium on the basis of the actuarial cost of purchasing rights in years is influenced by customary underlying actuarial assumptions, expected returns and often agreed ceilings. The expected contribution for the coming year is explained below. Other pension plans Other pension plans relate to, individually not material, multi-employer pension plans arranged with pension funds in the United Kingdom and insurance companies in the Netherlands, Belgium, the United Kingdom and the United States, as well as to minor unfunded defined benefit plans for two Group companies in Germany. These pension plans are in compliance with local laws and/or regulations applicable in the aforementioned countries. With the exception of the plan in the United Kingdom, where the Group may appoint one or more Directors or Trustees, the Group has no direct and/or significant involvement in the governance of these pension plans. The pension plans are characterized by defined benefit rights over the participant’s years of service, which are mainly based on average wages and include retirement and survivor’s pension. These pensions are indexed, for the main part with a limit being set to the available contributions and the return on plan assets, respectively. The pension liabilities and pension assets are placed with and managed by the pension funds or insurance companies. The risk for the Group relating to these pensions is therefore limited. With the exception of a closed pension plan in the United Kingdom, the future cash flows for the other arrangements are limited to the actuarially calculated annual premiums based on the cost of purchasing future pension rights. In other funded defined benefit plans there is no enforceable statutory or regulatory direct obligation to cover any deficits to fulfil future actuarial obligations. The contributions are subject to the customary, actuarial assumptions, expected returns and agreed contribution ceiling. The Group’s largest company pension fund in the United Kingdom is managed by BKW Trustee Company Limited. The management of the Trust company is partly appointed by Boskalis and partly elected by plan participants. The investment policy is geared to the fact that it is a closed arrangement relating primarily to fixed income. Pension law in the United Kingdom includes the requirement to index pension plans. In 2015 the required tri-annual valuation was conducted, which determined the required annual contributions to this pension fund. There is no requirement to immediately and fully cover an existing deficit in this pension plan.

ANNUAL REPORT 2017 – BOSKALIS A L REP RT 2017 -- BOSKALIS

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