Nokia 2009 Annual Report Download - page 203

4. Personnel expenses (Continued)
2009 2008 2007
Average personnel
Devices & Services ....................................... 56 462 57 443 49 887
NAVTEQ................................................ 4 282 3 969 —
Nokia Siemens Networks .................................. 62 129 59 965 50 336
Group Common Functions ................................. 298 346 311
Nokia Group ............................................ 123 171 121 723 100 534
5. Pensions
The Group operates a number of postemployment plans in various countries. These plans include
both defined contribution and defined benefit schemes.
The Group’s most significant defined benefit pension plans are in Germany and in the UK. The
majority of active employees in Germany participate in a pension scheme which is designed according
to the Beitragsorientierte Siemens Altersversorgung (“BSAV”). The funding vehicle for the BSAV is the
NSN 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 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 prior years, the Group had a significant pension plan in Finland. Prior to March 1, 2008, the
reserved benefits portion of the Finnish state Employees’ Pension Act (“TyEL”) system, that was pre
funded through a trusteeadministered Nokia Pension Foundation, was accounted for as a defined
benefit plan. As of March 1, 2008 the Finnish statutory pension liability and plan related assets of
Nokia and Nokia Siemens Networks were transferred to two pension insurance companies. The
transfer did not affect the number of employees covered by the plan nor did it affect the current
employees’ entitlement to pension benefits.
At the transfer date, the Group has not retained any direct or indirect obligation to pay employee
benefits relating to employee service in current, prior or future periods. Thus, the Group has treated
the transfer of the Finnish statutory pension liability and plan assets as a settlement of the Group’s
TyEL defined benefit plan. From the date of transfer onwards, the Group has accounted for the TyEL
plan as a defined contribution plan. The transfer resulted in EUR 152 million loss consisting of a
EUR 217 million loss impacting Common Group Functions and a EUR 65 million gain impacting Nokia
Siemens Networks operating profit. These are included in the other operating income and expense,
see Note 6. Subsequent to the transfer of the Finnish statutory pension liability and plan assets, the
Group retains only certain immaterial voluntary defined benefit pension liabilities in Finland.
F29
Notes to the Consolidated Financial Statements (Continued)