24. Employee benefits


(in thousands of euros)

Post-employment
benefits

Other long-term employee benefits

Termination
benefits

Total

Carrying amount as at 31 December 2018

Liability defined contribution

26,166

16,518

7,781

50,465

Liability in the balance sheet

26,166

16,518

7,781

50,465

Carrying amount as at 31 December 2017

Liability defined contribution

24,311

16,177

1,649

42,137

Liability in the balance sheet

24,311

16,177

1,649

42,137

The balance in the provision for termination benefits at the end of 2018 includes among others the costs Schiphol Group expects to incur in respect of restructurings in a few of its departments. The restructurings were announced in 2018 and implementation is ongoing or will commence in 2019.

Post-employment benefits consist of pension plans and job-related early retirement benefits. Other long-term employee benefits consist of long-service awards, disability benefit supplements and sustainable employment budget. The movements in post-employment benefit liabilities during the year were as follows:

(in thousands of euros)

2018

2017

Carrying amount as at 1 January

24,311

23,668

Total net benefit expense for the year

1,264

1,339

Benefits paid during the year

-1,314

-1,222

Actuarial changes presented in other comprehensive income

1,845

704

Other movements

60

-178

Total movements in the year

1,855

643

Carrying amount as at 31 December

26,166

24,311

The table below gives an overview of actuarial assumptions and estimates applied. Given the minimal impact, a significant variance in the balance sheet position as a result of other assumptions is unlikely.

Actuarial assumptions and estimates

31 December 2018

31 December 2017

Discount rate

1.30% - 1.40%

1.30% - 1.50%

Return on plan assets

1.50%

1.50%

Inflation

2.00%

1.50%

General salary increase

1.50%

1.50%

Life expectancy

Forecast table 2017 with adjustment
factors geared to the company’s average
salary level

Forecast table 2016 with adjustment factors geared to the company’s average salary level

Individual pay rises, depending
on age

3.00% (to age 36),
2.00% (to age 47),
1.00% (to age 56),
0.00% (to age 67)

3.00% (to age 36),
2.00% (to age 47),
1.00% (to age 56),
0.00% (to age 67)

Age difference

Men 3 years older than female partners

Men 3 years older than female partners

Incapacity risk

In and outflow of WIA, based on 2006
to 2011

In and outflow of WIA, based on 2006
to 2011

Termination probability, depending on age

4.20% (age 35) to 0.10% (age 64)

4.20% (age 35) to 0.10% (age 64)

Continued service probability (job-related early retirement scheme)

100%

100%

Schiphol Group’s pension plan is administered by Algemeen Burgerlijk Pensioenfonds (ABP). Based on the formal terms of the pension scheme, it qualifies as a defined-contribution plan. Schiphol Group recognises the pension contributions payable to ABP as an expense in the income statement. Further information on this point can be found under Accounting policies.

The ABP pension regulations do not contain any provisions on additional contributions to the fund and/or withdrawals from it in respect of Schiphol Group’s share in surpluses or deficits of the pension fund. Consequently, any surpluses and deficits will only result in changes in the amount of the contributions payable by Schiphol Group in the future and these will depend on the actual and expected financial position of the pension fund as reflected in the funding ratio. The expected contribution payment for 2019 is 30.0 million euros. ABP’s funding ratio was 97.0% as at 31 December 2018 (104.4% as at 31 December 2017).

Next:

25. Provisions