104 Notes to the Consolidated Financial Statements (continued) 26. Employee benefits Heineken NV. Report of the Report of the Financial Sustainability Other Annual Report 2016 Introduction Executive Board Supervisory Board Statements Review Information In millions of EUR 2016 2015 Present value of unfunded defined benefit obligations 305 329 Present value of funded defined benefit obligations 8,865 8,544 Total present value of defined benefit obligations 9,170 8,873 Fair value of defined benefit plan assets (7,815) (7,661) Present value of net obligations 1,355 1,212 Asset ceiling items 3 4 Recognised liability for defined benefit obligations 1,358 1,216 Other long-term employee benefits 62 73 1,420 1,289 HEINEKEN makes contributions to defined benefit plans that provide pension benefits for employees upon retirement in a number of countries. The defined benefit plans in the Netherlands and the UK combined cover 88.0% of the total defined benefit plan assets (2015: 88.4%), 84.1% of the present value of the defined benefit obligations (2015: 83.9%) and 61.2% of the present value of net obligations (2015: 55.2%) as at 31 December 2016. HEINEKEN provides employees in the Netherlands with an average pay pension plan based on earnings up to the legal tax limit. Indexation of accrued benefits is conditional on the funded status of the pension fund. HEINEKEN pays contributions to the fund up to a maximum level agreed with the Board of the pension fund and has no obligation to make additional contributions in case of a funding deficit. In 2016, HEINEKEN's cash contribution to the Dutch pension plan was at the maximum level. The same level is expected to be paid in 2017. HEINEKEN's UK plan (Scottish Newcastle pension plan 'SNPP') was closed to future accrual in 2010 and the liabilities thus relate to past service before plan closure. Based on the triennial review finalised in early 2016, HEINEKEN has renewed the funding plan (until 31 May 2023) including an annual Company contribution of GBP37.5 million in 2017, thereafter increasing with GBP1.7 million per year. Deficit payments as of 2019 will be reviewed and may be replaced following the next triennial valuation which will take place in 2019. As at 31 December 2016, the IAS 19 present value of the net obligations of SNPP represents a GBP581 million (EUR 679 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. Other countries where HEINEKEN offers a defined benefit plan to (former) employees include: Austria (closed in 2007 to new entrants), Belgium, France, Greece (closed in 2014 to new entrants), Ireland (closed in 2012 to all future accrual), Jamaica (to be closed in 2017 to all future accrual), Mexico (plan changed to hybrid defined contribution for majority of employees in 2014), Nigeria (closed to new entrants in 2007), Portugal, Spain (closed to management in 2010) and Switzerland. The vast majority of benefit payments are from pension funds that are held in trusts (or equivalent); however, there is a small portion where HEINEKEN meets the benefit payment obligation as it falls due. Plan assets held in trusts are governed by Trustee Boards composed of HEINEKEN representatives and independent and/or member representation, in accordance with local regulations and practice in each country. The relationship and division of responsibility between HEINEKEN and the Trustee Board (or equivalent) including investment decisions and contribution schedules are carried out in accordance with the plan's regulations. In other countries, retirement benefits are provided to employees via defined contribution plans. Other long-term employee benefits mainly relate to long-term bonus plans, termination benefits, medical plans and jubilee benefits.

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Jaarverslagen | 2016 | | pagina 105