102
Notes to the Consolidated Financial Statements (continued)
26. Employee benefits (continued)
Movement in net defined benefit obligation
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Report of the
Report of the
Financial
Sustainability
Other
Introduction
Executive Board
Supervisory Board
Statements
Review
Information
Heineken N.V. Annual Report 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 201 7, thereafter increasing with GBP1.7 million per year. Deficit payments as of 2019 will
be reviewed and may be replaced following the upcoming triennial valuation. No additional liability has been 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 (closed in 2017 to all future accrual), Mexico
(plan changed to hybrid defined contribution for majority of employeesin 2014), Nigeria (closed to new entrants in 2007), Portugal, Spain (closed
to management in 2010 and changed to a defined contribution plan for actives in 201 7) 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 intrusts 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.
The movement in the net defined benefit obligation overtheyear is as follows:
Present value of Fair value of defined Present value
defined benefit obligations benefit plan assets of net obligations
In millions of
Note
2017
2016
2017
2016
2017
2016
Balance as at 1 January
9,170
8,873
(7,815)
(7,661)
1,355
1,212
Included in profit or loss
Current service cost
85
86
85
86
Past service cost/(credit)
5
1
5
1
Administration expense
4
2
4
2
Effect of any settlement
(35)
(1)
(35)
(1)
Expense recognised
in personnel expenses
10
55
86
4
2
59
88
Interest expense/(income)
12
196
257
(163)
(217)
33
40
251
343
(159)
(215)
92
128
Included in OCI
Remeasurement loss/(gain):
Actuarial loss/(gain) arising from
Demographic assumptions
79
20
79
20
Financial assumptions
190
1,080
190
1,080
Experience adjustments
(31)
(139)
(31)
(139)
Return on plan assets
excluding interest income
(327)
(660)
(327)
(660)
Effect of movements
in exchange rates
(200)
(674)
165
557
(35)
(117)
38
287
(162)
(103)
(124)
184
Other
Changes in consolidation
and reclassification
42
(1)
(49)
(7)
(1)
Contributions paid:
By the employer
(136)
(168)
(136)
(168)
By the plan participants
23
23
(23)
(23)
Benefits paid
(385)
(355)
385
355
Settlements
(51)
51
(371)
(333)
228
164
(143)
(169)
Balance as at 31 December
9,088
9,170
(7,908)
(7,815)
1,180
1,355
