THE PARENT
COMPANY
FINANCIAL INFORMATION
PENSION COMMITMENTS
For white-collar employees in Sweden ITP 2-plan defined benefit pensionplans for retirement- and family pensions (or family pension)
are secured through insurance with Alecta. According to a statement from the Swedish Financial Reporting Board, UFR 10 Accounting
for pension plan ITP 2 financed by insurance in Alecta, this is a defined benefit plan that covers several employers. For financial year
2016 the company has not had access to information in order to account for its proportionate share of the plan's obligations, plan assets
and costs which meant that the plan has not been possible to account for as a defined benefit plan. The pension plan ITP 2 secured
through insurance with Alecta is therefore recognized as a defined contribution plan. The premium for the defined benefit retirement
and family pension is individually calculated and is dependent on factors including salary, previously earned pension and expected
remaining period of service. Expected premiums for 2017 amount to SEK 0.8 million (SEK 0.7 million).
The collective funding level is the market value of Alecta’s assets in percent of the commitments calculated in accordance with Alecta´s
calculation assumptions for insurance purposes, which do not comply with IAS19. The collective consolidation level is normally allowed
to vary between 125 and 155 percent. If Alecta’s consolidation level fall below 125 percent or exceed 155 percent, measures should be
taken in order to create conditions to reestablish the consolidation level to the normal range. At low consolidation, a measure can be to
raise the agreed price for new agreements. At high consolidation, a measure can be to introduce premium reductions. Alecta’s collective
funding ratio at the end of the year was 154% (149%).
NWG 2017 | 99