100
Notes to the Consolidated Financial Statements
9. Provisions and contingent liabilities
Refer to the table below for the split of these plans in the total present value of the net obligations of HEINEKEN.
2,717
2,641
4,386
4,120
1,257
1,161
8,360
7,922
(2,581)
(2,557)
(4,324)
(4,055)
(1,101)
(957)
(8,006)
(7,569)
2023
2022
167
177
136
84
62
65
156
204
354
353
Introduction
145
129
39
28
538
510
48
58
586
568
2023
UK
2022
UK
2023
NL
2022
NL
Sustainability
Review
Financial
Statements
Other
Information
Report
of the
Supervisory
Board
Report
of the
Executive
Board
9.1 Post-retirement obligations
HEINEKEN makes contributions to pension plans that provide pension benefits to (former) employees upon
retirement, both via defined benefit as well as defined contribution plans. Other long-term employee benefits
include long-term bonus plans, termination benefits, medical plans and jubilee benefits. Refer to note 6.4 for the
contribution to defined contribution plans. This note relates to HEINEKEN's defined benefit pension plans. Refer
to the table below for the present value of the defined benefit plans as at 31 December.
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 (UK) represent the majority
of the total defined benefit plan assets and the present value of the defined benefit obligations.
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.
During 2023, the coverage ratio of the Dutch pension fund improved slightly. The interest rates showed a small
decrease that increased the fund’s net defined benefit obligations. The fund’s financial position allowed for
pension indexation in 2023.
In 2023, the increase in the fair value of defined benefit plan assets is mainly due to an increase in the value of
equities, bonds, interest rate swaps, mortgages and alternative credits. The higher defined benefit obligation is
mainly due to a lower discount rate assumption, and a higher indexation assumption. HEINEKEN’s cash
contribution to the Dutch pension plan was at the maximum level. The same level will apply in 2024.
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 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
in early 2020, which leads to a gradual decrease in investment risk. The schedule of deficit recovery payments
remained in place until May 2023. As of June 2023, deficit recovery payments have stopped. Going forward
recovery payments will be conditional on the funding position of the pension fund and capped on the former
contribution level.
In 2023, the increase in the fair value of defined benefit plan assets is due to a stronger British Pound foreign
currency translation impact offset by the decrease in the fair value of the defined benefit plan assets mainly due
to a fall in the value of the longevity swap, as a result of updating the assumption for future mortality
improvements. The increase in defined benefit obligation over 2023 is mainly due to actual deferred
revaluations and pension increases being higher than assumed. The increase in the defined benefit obligation as
a result of a fall in the discount rate assumption was mostly offset by a fall in the long term inflation assumption
and a change in the mortality assumption to adopt the latest available model for projecting future
improvements in life expectancies.
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.
2023
Other
2022
Other
2023
Total
2022
Total
Heineken
N.V.
Annual
Report
2023
In millions of
Present value of unfunded defined benefit obligations
Present value of funded defined benefit obligations
Total present value of defined benefit obligations
Fair value of defined benefit plan assets
Present value of net obligations
Asset ceiling items
Defined benefit plans included under non-current assets
Recognised liability for defined benefit obligations
Other long-term employee benefits
8,193
8,360
(8,006)
354
7,745
7,922
(7,569)
353
In millions of
Total present value of
defined benefit obligations
Fair value of defined benefit
plan assets
Present value of net
obligations
