Nokia 2008 Annual Report Download - page 172

5. Pensions (Continued)
Pension Trust. In Germany, individual benefits are generally dependent on eligible compensation
levels, ranking within the Group and years of service. The majority of active employees in Nokia UK
participate in a pension scheme which is designed according to the Scheme Trust Deeds and Rules
and is compliant with the Guidelines of the UK Pension Regulator. The funding vehicle for the pension
scheme is the Nokia Group (UK) Pension Scheme Ltd which is run on a Trust basis. In the UK,
individual benefits are generally dependent on eligible compensation levels and years of service for
the defined benefit section of the scheme and on individual investment choices for the defined
contribution section of the scheme.”
In connection with the formation of Nokia Siemens Networks in 2007, the Group assumed multiple
pension plans reflected as acquisitions in the following tables.
The pension acts applying to wage and salary earners in private sectors in Finland, including the
former TEL Act, were combined on January 1, 2007 into one earningsrelated pensions act, the
Employee Pensions Act (TyEL). The change had no impact to the Group’s net pension asset in Finland.
The following table sets forth the changes in the benefit obligation and fair value of plan assets
during the year and the funded status of the significant defined benefit pension plans showing the
amounts that are recognized in the Group’s consolidated balance sheet at December 31:
Domestic
Plans
Foreign
Plans
Domestic
Plans
Foreign
Plans
2008 2007
EURm EURm EURm EURm
Present value of defined benefit obligations at beginning of year . . . . (1 011) (1 255) (1 031) (546)
Foreign exchange . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . —56—27
Current service cost . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (10) (69) (59) (66)
Interest cost . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (9) (69) (50) (54)
Plan participants’ contributions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . — (10) — (8)
Past service cost . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . — (2) ——
Actuarial gain (loss). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3 102 115 126
Acquisitions. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . — (2) — (780)
Curtailment . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . —10 31
Settlements . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1 018 7 —15
Benefits paid . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 23411 30
Present value of defined benefit obligations at end of year . . . . . . . . . (7) (1 198) (1 011) (1 255)
Plan assets at fair value at beginning of year . . . . . . . . . . . . . . . . . . . 1 063 1 111 985 424
Foreign exchange . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . — (58) — (27)
Expected return on plan assets . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 96249 46
Actuarial gain (loss) on plan assets . . . . . . . . . . . . . . . . . . . . . . . . . . . (1) (38) (33) (2)
Employer contribution . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7 134 73 90
Plan participants’ contributions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . —10—8
Benefits paid . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (2) (22) (11) (30)
Curtailments . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . — (5) ——
Settlements . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (1 076) (2) — (3)
Acquisitions. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . —5— 605
Plan assets at fair value at end of year . . . . . . . . . . . . . . . . . . . . . . . . — 1 197 1 063 1 111
Surplus/(Deficit). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (7) (1) 52 (144)
Unrecognized net actuarial (gains) losses . . . . . . . . . . . . . . . . . . . . . . (2) (111) 97 (41)
Unrecognized past service cost . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . —1——
Prepaid/(Accrued) pension cost in balance sheet . . . . . . . . . . . . . . . . . (9) (111) 149 (185)
Present value of obligations include EUR 707 million (EUR 1 799 million in 2007) of wholly funded
F28
Notes to the Consolidated Financial Statements (Continued)