NOTES TO THE BALANCE SHEET

22. Pension obligations
2016 2015
Pension liability/receivable in balance sheet
Defined benefit plans 21.6 17.6
Other long-term employee benefits 1.1 1.1
Pension liability (+)/receivable(-) in balance sheet 22.7 18.8
The Group’s defined benefit plans consist of the pension liability for the former CEO of the parent company and Swedish pension program. The company’s pension commitment in respect of the defined benefit relating to former CEO was EUR 2.8 million on 31 December 2016. The remaining pension liability relates to Swedish pension programme.
The defined benefit plan in Sweden is the ITP2 plan and it is based on final salary. HKScan has pension foundation in Sweden to secure obligations relating to retirement pensions for white-collar workers in accordance with the ITP2 plan. Only new white-collar employees born before or in 1979 have the possibility to choose the ITP2 solution. Pension foundation has employer and employee representatives in the board. The plan assets are invested in various funds in acoordance with a distribution that is determined by the foundation's Board of Directors. Swedish companies can secure new pension obligations through pension insurance, balance-sheet provisions or pension-fund contributions. A credit insurance policy must be taken out for the value of the obligations. Special pension tax is applicable for pension plan in Sweden.
Summary of provision for post-employment benefits, defined benefit plans 2016 2015
Obligations -104.5 -108.7
Fair value of plan assets 89.4 97.0
Special pension tax -3.7 -2.9
Net provision for funded post-employment benefits -18.8 -14.6
Provision for unfunded post-employment benefits -2.8 -2.9
Total provision for post-employment benefits, defined benefit plans -21.6 -17.6
Pension costs in the income statement 2016 2015
Current year service costs -1.0 -1.0
Interest costs -3.2 -3.4
Interest income 2.8 3.0
Special pension tax -0.3 -0.3
Pension costs for defined benefit plans -1.7 -1.7
Pension costs for defined contribution plans -26.1 -24.3
Total pension costs for the period -27.8 -26.0
Pension cost in other comprehensive income 2016 2015
Changes in actuarial assumptions -2.9 -1.6
Special pension tax -0.7 -0.4
Income tax effect 0.8 0.4
Total pension cost in other comprehensive income after taxes -2.9 -1.5
The following information is about the funded defined benefit plan the Group has in Sweden:
Obligations 2016 2015
Obligations opening balance -108.7 -109.9
Current year service costs -1.0 -1.0
Interest costs -3.2 -3.4
Remeasurements:
Effect of changes in financial assumptions -1.2 -0.1
Effect of experience adjustments -0.2 2.0
Exchange rate translation 4.1 -2.4
Benefits paid 5.7 5.9
Obligations closing balance -104.5 -108.7
Fair value of plan assets 2016 2015
Plan assets opening balance 97.0 100.7
Interest income 2.8 3.0
Remeasurements (experience adjustments) -1.4 -3.5
Exchange rate translation -3.7 2.2
Settlement paid -5.1 -5.3
Plan assets closing balance 89.4 97.0
Assumptions applied for actuarial calculations, % 2016 2015
Discount rate 2.25 3
Expected salary increase 2.25 2.25
Inflation 1.5 1.5
Personnel turnover rate 4 4
Life expentancy DUS 14 -
Plan assets by category % 2016 2015
Interest funds 69 64
Equity instrument funds 30 35
Private equity funds 1 1
Sensitivity analysis 2016, effect on obligation (+decrease/-increase), EUR million Change Used
value
Change
Discount rate -0.50% 2.25% 0.50%
-7.6 -104.5 6.7
Salary increase -0.50% 2.25% 0.50%
1.1 -104.5 -1.3
Inflation -0.50% 1.50% 0.50%
6.0 -104.5 -6.6
Life expectancy -1 year DUS 14 1 year
4.3 -104.5 -4.4
Average duration of the obligation is 14 years.