NWG Annual Report 2019 - EN NWG Annual Report 2019 - EN | Page 83

NWG // FINANCIAL INFORMATION //
THE GROUP
Pension obligations
Defined benefit pension plans exist within the Group.
These are only smaller pension plans. For white-
collar employees in Sweden ITP 2-plan defined
benefit pension obligations for retirement- and
family pensions (or family pension) are secured
through insurance in Alecta. According to a statement
from the Swedish Financial Reporting Board, UFR 10
Accounting for pension plan ITP 2 financed by insu-
rance in Alecta, this is a defined benefit plan that
covers several employers. For financial year 2019 the
company has not had access to information in order to
account for its proportionate share of the plan's obliga-
tions, 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 insu-
rance in Alecta is therefore recognized as a defined
contribution plan. The premium for the defined benefit
retirement and family pension is individually calcu-
lated and is dependent on factors including salary,
previously earned pension and expected remaining
period of service. Expected premiums for 2020
amount to SEK 9.5 (9.4) 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 IAS 19. The collective consolidation level
is normally allowed to vary between 125 and 155 %. If
Alecta’s consolidation level fall below 125 % or exceed
155 %, 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 148 % (142 %).
Note 7 - Remuneration to auditors
SEK million
Audit assignment 2019 2018
Ernst & Young
Other 5.3
5.5 5.0
5.2
0.7
1.2
12.7 0.6
1.1
11.9
Audit work outside audit assignment
Tax consultancy
Total
ANNUAL REPORT // 083