Report of the
Report of the
Principal actuarial assumptions as at the balance sheet date
The defined benefit plans in the Netherlands and the UK cover 87.4 per cent of the present value of the defined benefit plan assets (201187.2 per cent).
82.2 per cent of the present value of the defined benefit obligations (201182.8 per cent) and 60.1 per cent of the present value of net obligations
(2011:57.8 percent) as at 31 December 2012.
For the Netherlands and the UK the following actuarial assumptions apply as at 31 December:
The Netherlands UK*
Discount rate as at 31 December
Expected return on defined benefit plan assets as at 1 January
Future salary increases
Future pension increases
The UK plan closed for future accruals leading to certain assumptions being equal to zero.
For the other defined benefit plans the following actuarial assumptions apply at 31 December:
Other Western, Central Africa and the
and Eastern Europe The Americas Middle East
2.0-3.2 2.9-4.8 6.7 7.6-10.7 14.0
Expected return on defined benefit plan assets as at 1 January 2.4-4.9 3.3-7.3 6.7 7.6
Future salary increases 1.0-10.0 1.0-10.0 3.8 3.8 10.8 12.0
Future pension increases 1.0-2.5 1.0-2.1 2.8 2.9
Medical cost trend rate 3.4-4.5 3.5 5.1 5.1 10.0
Assumptions regarding future mortality rates are based on published statistics and mortality tables. For the Netherlands the rates are obtained from the
AG-Prognosetafel 2012-2062', fully generational. Correction factors from TowersWatson are applied on these. For the UK the rates are obtained from
the ContinuousContinuous Mortality Investigation 2012 projection model.
The overall expected long-term rate of return on assets is 5.6 per cent (20115.5 per cent), which is based on the asset mix and the expected rate of return
on each major asset class, as managed by the pension funds.
Assumed healthcare cost trend rates have no effect on the amounts recognised in profit or loss. A one percentage point change in assumed healthcare
cost trend rates would not have any effect on profit or loss neither on the statement of financial position as at 31 December 2012.
Based on the tri-annual review finalised in early 2010, H EINEKEN has agreed a 12-year plan aiming to fund the recovery of the Scottish Newcastle
Pension Plan through additional Company contributions. These could total GBP504 million of which GBP65 million has been paid to December 2012.
As at 31 December 2012 the IAS 19 present value of the net obligations of the Scottish Newcastle Pension Plan represents a GBP331 million
(EUR405 million) deficit. No additional liability has to be recognised as the net present value of the minimum funding requirement does not exceed the
net obligation. The next review of the funding position and the recovery plan commenced in October 2012 and is expected to be finalised during 2013.
The Group expects the 2013 contributions to be paid for the defined benefit plan to be in line with 2012.
Heineken N.V. Annual Report 2012