ING Direct 2011 Annual Report Download - page 155

Notes to the consolidated annual accounts of ING Group continued
Summary of post-employment benefits
2011 2010 2009 2008 2007
Defined benefit obligation 176 168 156 210 220
176 168 156 210 220
Unrecognised past service costs 33824
Unrecognised actuarial gains/(losses) 111 7 8
179 172 175 219 232
The Group maintains defined benefit retirement plans in some of the countries of operation. These plans provide benefits that are
related to the remuneration and service of employees upon retirement. The benefits in some of these plans are subject to various forms
ofindexation. The indexation is, in some cases, at the discretion of management; in other cases it is dependent upon the sufficiency
of plan assets.
Annual contributions are paid to the funds at a rate necessary to adequately finance the accrued liabilities of the plans calculated
in accordance with local legal requirements. Plans in all countries comply with applicable local regulations governing investments
and funding levels.
The Group provides other post-employment employee benefits to certain employees and former employees. These are primarily
post-employment healthcare benefits and discounts on ING products provided to employees and former employees.
Certain group companies sponsor defined contribution pension plans. The assets of all ING Group’s defined contribution plans are
held in independently administered funds. Contributions are generally determined as a percentage of pay. These plans do not give rise
to balance sheet provisions, other than relating to short-term timing differences included in current liabilities.
Actuarial gains and losses related to pensions and post-employment benefits for the year ended 31 December 2011 include EUR 1,760
million (2010: EUR 1,085 million; 2009: EUR 387 million; 2008: EUR –2,647 million; 2007: EUR –789 million) experience gain adjustments
for assets and EUR 10 million (2010: EUR 154 million; 2009: EUR 172 million; 2008: EUR –70 million; 2007: EUR 83 million) experience gain
adjustments for liabilities.
Changes in defined benefit obligation
Pension benefits
Post-employment benefits
other than pensions
2011 2010 2011 2010
Opening balance 16,183 14,209 168 156
Current service cost 324 298 85
Interest cost 851 795 88
Employer’s contribution 4
Participants contributions 23
Benefits paid –666 –634 –5 –6
Actuarial gains and losses –455 1,396 –3 2
Past service cost –8 –4
Changes in the composition of the group and other
changes 13 –20 –2 –1
Effect of curtailment or settlement –110 –7
Exchange rate differences 78 143 24
Closing balance 16,212 16,183 176 168
Relating to:
– funded plans 16,111 16,051
– unfunded plans 101 132 176 168
16,212 16,183 176 168
In 2011, Effect of curtailment or settlement relates mainly to a curtailment in relation to the restructuring in Retail Netherlands and
acurtailment in relation to a change in one of the pension plans in the United States.
The estimated unrecognised past services cost and unrecognised actuarial gains and losses for the defined benefit plans to be amortised
topension and other staff related liability costs during 2012 are nil and EUR 40 million, respectively.
1 Who we are 2 Report of the Executive Board 3 Corporate governance 4 Consolidated annual accounts 5 Parent company annual accounts 6 Other information 7 Additional information
153ING Group Annual Report 2011