Notes to the Consolidated Financial Statements (continued) Present value of net obligations O Q, 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 2018 UK 2017 UK 2018 NL 2017 NL 2018 Other 2017 Other 2018 Total 2017 Total Total present value of defined benefit obligations 3,611 4,002 3,587 3,729 1,313 1,357 8,511 9,088 Fair value of defined benefit plan assets (3,276) (3,449) (3,488) (3,546) (918) (913) (7,682) (7,908) 335 553 99 183 395 444 829 1,180 Heineken N.V. Annual Report 2018Ï 88 Financial Statements Sustainability Review Other Information 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.

Jaarverslagen en Personeelsbladen Heineken

Jaarverslagen | 2018 | | pagina 89