Nokia 2013 Annual Report Download - page 46

NOKIA IN 2013
44
The Group’s most signifi cant defi ned benefi t pension plans
are in Germany, UK, India and Switzerland. Together they
account for % (% in ) of the Group’s total defi ned
benefi t obligation and % (% in ) of the Group’s total
plan assets.
Germany
The majority of active employees in Germany participate in the
cash balance plan BAP (Beitragsorientierter Alterversorgungs
Plan), formerly known as Beitragsorientierte Siemens Alterver-
sorgung (“BSAV”). Individual benefi ts are generally dependent
on eligible compensation levels, ranking within the Group and
years of service. This plan is a partly funded defi ned benefi t
pension plan, the benefi ts of which are subject to a minimum
return guaranteed by the Group. The funding vehicle for the BAP
plan is the NSN Pension Trust e.V. The trust is legally separate
from the Group and manages the plan assets in accordance with
the respective trust agreements with the Group. The risks spe-
cifi c to the German defi ned benefi t plans are related to changes
in mortality of covered members and investment return of the
plan assets. Curtailments were recognized in service costs for
German pension plans during  as a result of reduction in
workforce in  and the planned reduction in .
United Kingdom
The Group has a UK defi ned benefi t plan divided into two sec-
tions: the money purchase section and the fi nal salary section,
both being closed to future contributions and accruals as of
April , . Individual benefi ts are generally dependent on
eligible compensation levels and years of service for the de-
fi ned benefi t section of the plan and on individual investment
choices for the defi ned contribution section of the plan. The
funding vehicle for the pension plan is the NSN Pension Plan
that is run on a trust basis.
India
Government mandated gratuity and provident plans provide
benefi ts based on years of service and projected salary levels
at the date of separation for the Gratuity Plan and through
an interest rate guarantee on existing investments in a
government prescribed Provident Fund Trust. Gratuity Fund
plan assets are invested and managed through an insurance
policy. Provident Fund Assets are managed by NSN PF Trustees
through a pattern prescribed by the Government in various
fi xed income securities.
Switzerland
The Group’s Swiss pension plans are governed by the Swiss
Federal Law on Occupational Retirements, Survivors’ and
Disability Pension plans (BVG), which stipulates that pension
plans are to be managed by an independent, legally autono-
mous unit. In Switzerland, individual benefi ts are provided
through the collective foundation Profond. The plan’s benefi ts
are based on age, years of service, salary and an individual
old age account. The funding vehicle for the pension scheme
is the Profond Vorsorgeeinrichtung. During fi scal year ,
the collective foundation Profond has decided to decrease
their conversion rates (pension received as a percentage of
retirement savings) in fi ve years gradually from .% to .%,
which will reduce the expected benefi ts at retirement for all
employees. This event qualifi es as a plan amendment and the
past service gain of EUR  million arising from this amendment
was recognized immediately in the service cost of the year.
The following table presents the defi ned benefi t obliga-
tions, the fair value of plan assets, the eff ects of the asset
ceiling and the net defi ned benefi t balance at December ,
 for continuing operations and at December ,  for
the Group, as restated.
Defi ned benefi t Fair value of Eff ects of Net defi ned
obligation plan assets asset ceiling benefi t balance
EURm 2013 2012 2013 2012 2013 2012 2013 2012
Germany – 1062 – 1305 904 996 — — – 158 – 309
UK – 98 – 405 108 527 — — 10 122
India – 85 – 115 82 110 – 1 — – 4 – 5
Switzerland – 78 – 91 63 57 — — – 15 – 34
Other – 130 – 157 104 118 – 6 – 3 – 32 – 42
Nokia Group Total – 1453 – 2073 1261 1808 – 7 – 3 – 199 – 268