Nokia 2009 Annual Report Download - page 205

5. Pensions (Continued)
The amounts recognized in the income statement are as follows:
2009 2008 2007
EURm EURm EURm
Current service cost ................................................. 55 79 125
Interest cost ....................................................... 69 78 104
Expected return on plan assets ........................................ (70) (71) (95)
Net actuarial (gains) losses recognized in year ........................... (9) —10
Impact of paragraph 58(b) limitation ................................... 5——
Past service cost (gain) loss........................................... —2—
Curtailment ....................................................... —(12) (1)
Settlement ........................................................ —152 (12)
Total, included in personnel expenses .................................. 50 228 131
Movements in prepaid (accrued) pension costs recognized in the statement of financial position are as
follows:
2009 2008
EURm EURm
Prepaid (accrued) pension costs at beginning of year ............................ (120) (36)
Net income (expense) recognized in the profit and loss account.................... (50) (228)
Contributions paid ........................................................ 49 141
Benefits paid . ........................................................... 16 12
Acquisitions . . ........................................................... 13
Foreign exchange......................................................... (2) (12)
Prepaid (accrued) pension costs at end of year* ................................ (106) (120)
* included within prepaid expenses and accrued income / accrued expenses
The prepaid pension cost above is made up of a prepayment of EUR 68 million (EUR 55 million in
2008) and an accrual of EUR 174 million (EUR 175 million in 2008).
2009 2008 2007 2006 2005
EURm EURm EURm EURm EURm
Present value of defined benefit obligation ........... (1 411) (1 205) (2 266) (1 577) (1 385)
Plan assets at fair value ........................... 1 330 1 197 2 174 1 409 1 276
Surplus/(Deficit) ................................. (81) (8) (92) (168) (109)
Experience adjustments arising on plan obligations amount to a loss of EUR 12 million in 2009 (gain
of EUR 50 million in 2008, a loss of EUR 31 million in 2007 and EUR 25 million in 2006). Experience
adjustments arising on plan assets amount to a gain of EUR 54 million in 2009 (a loss of
EUR 22 million in 2008, EUR 3 million in 2007 and EUR 11 million in 2006).
The principal actuarial weighted average assumptions used were as follows:
2009 2008
%%
Discount rate for determining present values .................................... 5.3 5.8
Expected longterm rate of return on plan assets ................................ 5.4 5.7
Annual rate of increase in future compensation levels ............................. 2.8 2.7
Pension increases ......................................................... 2.0 1.9
F31
Notes to the Consolidated Financial Statements (Continued)