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Notes to the Consolidated Financial Statements
Q Q Heineken N.V. Report of the Report of the Financial Sustainability Other
s xJ Annual Report 2020 Introduction Executive Board Supervisory Board Statements Review Information
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 (NL) 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
2020
UK
2019
UK
2020
NL
2019
NL
2020
Other
2019
Other
2020
Total
2019
Total
Total present value
of defined benefit
obligations
4,063
3,945
4,102
4,096
1,425
1,476
9,590
9,517
Fair value of defined
benefit plan assets
(3,751)
(3,529)
(4,059)
(3,939)
(947)
(983)
(8,757)
(8,451)
Present value of net
obligations
312
416
43
157
478
493
833
1,066
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 2020, HEINEKEN's
cash contribution to the Dutch pension plan was at the maximum level. The same level will apply in 2021.
As a result of a legal obligation to settle a closed transitional plan per the end of 2020, a one-off contribution
of €80 million was prepaid by HEINEKEN to the pension fund in 2020. Early 2021 the final contribution will
be determined and settled with the prepayment. As a result of the final settlement, the respective plan will be
fully funded. The final contribution is expected to be in line with the prepayment of €80 million.
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 2019, HEINEKEN has renewed the funding plan (until 31 May 2023) including an annual deficit
reduction contribution of GBP39.2 million in 2018, thereafter increasing with GBP1.7 million per year. At the
end of 2018, an agreement (the Funding Agreement) was reached with the UK pension fund Trustees on
a more conservative longer term funding and investment approach towards 2030. This agreement has
been formalised during 2019 and signed early 2020, which 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 pension 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.
