Notes to the Consolidated Financial Statements (continued)
Present value of
Introduction Report of the Executive Board Report of the Supervisory Board
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 fulfils 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.
The defined benefit pension plans in the Netherlands and the United Kingdom represent the majority of
the total defined benefit plan assets and the present value of the defined benefit obligations. Refer to the
table below for the split of these plans in the total present value of the net obligations of HEINEKEN.
In millions of
Total present value
of defined benefit
Fair value of
Heineken N.V. Annual Report 2018Ï 88
Defined benefit plan in the Netherlands
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 2018,
HEINEKEN's cash contribution to the Dutch pension plan was at the maximum level. The same level is
expected to be paid in 2019.
Defined benefit plan in the United Kingdom
HEINEKEN's UK plan (Scottish Newcastle pension plan 'SNPP') was closed to future accrual in 2011 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 deficit
reduction contribution of GBP39.2 million in 2018, thereafter increasing with GBP1.7 million per year.
By the end of 2018 an agreement was reached with the UK pension fund Trustees on a more conservative
longer-term funding approach toward 2030. This agreement will be formalised during 2019 and leads to a
gradual decrease of investment risk. The current schedule of deficit recovery payments until May 2023 will
remain in place. As of June 2023 deficit recovery payments will be conditional on the funding position of
the pensions fund and will be capped on the current contribution level.
Defined benefit plans in other countries
In a few other countries HEINEKEN offers defined benefit plans, which are individually not significant to
HEINEKEN. The majority of these plans are closed for new participants.