23 Retirement benefit obligations

Net benefit expense recognised in the income statement

Net benefit expense recognised in the income statement
CHF million 2008 2009
Current service cost 21 27
Interest cost 28 37
Expected return on plan assets – 25 – 30
Actuarial (gains) / losses recognised in the year (§ 92 f) 0 4
Actuarial (gains) / losses recognised in the year (§ 58 A) 32 0
Past service cost 0 3
Effect of the limit in § 58(b) – 26 1
Plan curtailment / settlement 0 – 2
Other pension costs 0 – 1
Net benefit expense 30 39
     

Difference between the expected and actual return on plan assets

Difference between the expected and actual return on plan assets
CHF million 2008 2009
Expected return on plan assets 25 30
Actuarial gains / (losses) on plan assets – 107 52
Actual return on plan assets – 82 82
     

Amounts for the current and previous four reporting periods

Amounts for the current and previous four reporting periods
CHF million 2005 2006 2007 2008 2009
Present value of defined benefit obligation 642 752 757 780 1,048
Fair value of plan assets 468 569 633 580 865
Deficit / (surplus) in all plans 174 183 124 200 183
Deficit / (surplus) in funded plans only – 9 9 – 34 57 36
Experience adjustments on plan liabilities 1 37 3 42 10
Experience adjustments on plan assets 36 18 10 – 107 52
           

Retirement benefit obligations recognised in the statement of financial position

Retirement benefit obligations recognised in the statement of financial position
CHF million 2008 2009
Present value of funded defined benefit obligation 637 901
Fair value of plan assets 580 865
Deficit / (surplus) 57 36
Present value of unfunded defined benefit obligation 144 147
Unrecognised actuarial gains / (losses) – 69 – 15
Net liability in the statement of financial position 132 168
Recognised asset – 14 – 12
Recognised liability 146 180
     

Changes in the present value of the defined benefit obligation

Changes in the present value of the defined benefit obligation
CHF million 2008 2009
1 In the reporting period, Alpiq assumed the obligations (CHF 54 million) for former participants in the pension fund of Motor-Columbus Ltd., who now participate in the multi-employer pension scheme in the Energy segment. The assumption of these obligations had no impact on pension costs for the period.
Defined benefit obligation at 1 January 757 780
Interest cost 28 37
Current service cost 21 27
Contributions by plan participants 12 14
Past service cost 0 3
Benefits paid – 22 – 19
Acquisition / disposal of subsidiaries 6 192
Plan amendment / settlement 0 – 43
Other movements 1 0 55
Business disposals – 1 0
Actuarial (gains) / losses – 4 2
Exchange differences – 17 0
Defined benefit obligation at 31 December 780 1,048
     

Changes in the fair value of plan assets

Changes in the fair value of plan assets
CHF million 2008 2009
Fair value of plan assets at 1 January 633 580
Expected return on plan assets 25 30
Contributions by employer 33 35
Contributions by plan participants 12 14
Benefits paid – 22 – 19
Acquisition / disposal of subsidiaries 6 158
Other movements 0 56
Plan amendment / settlement 0 – 41
Actuarial gains / (losses) – 107 52
Fair value of plan assets at 31 December 580 865
     

Analysis of the fair value of plan assets

Analysis of the fair value of plan assets
CHF million 2008 2009
Equity instruments of the company 0 0
Equity instruments of third parties 152 334
Debt instruments of the company 0 0
Debt instruments of third parties 324 364
Property occupied by the company 0 0
Property not occupied by the company 86 121
Other 18 46
Total fair value of plan assets 580 865
     

The long-term rate of return was determined based on the investment strategy of the pension funds and the expected return on each asset class over the average remaining service lives of employees.

Actuarial assumptions used in the calculations

Actuarial assumptions used in the calculations
% 2008 2009
Discount rate 3.99 3.61
Expected rate of return on plan assets 4.00 4.00
Future salary increases 2.19 1.92
Future pension increases 0.63 0.28
     

Expected contributions by the employer and plan participants for the next period

Expected contributions by the employer and plan participants for the next period
CHF million 2009 2010
Contributions by employer 31 33
Contributions by plan participants 12 15