ING Direct 2015 Annual Report Download - page 100

Contents
Who we are
Report of the
Management
Board
Corporate
Governance
Consolidated
annual accounts
Parent company
annual accounts
Other
information
Additional
information
Notes to the Consolidated annual accounts of ING Bank - continued
The weighted average discount rate as at 31 December 2015 was 3.0 % (31 December 2014: 2.6%). The change in this rate impacts
both the Remeasurement of plan assets and Actuarial gains and losses arising from changes in financial assumptions.
The accumulated amount of remeasurements recognised directly in Other comprehensive income (equity) is EUR –507 million (EUR –
306 million after tax) as at 31 December 2015 (2014: EUR –583 million, EUR –370 million after tax).
The amount of the remeasurement of the net defined asset/liability in 2014 was mainly a result of the change in the high quality
corporate bond rate.
In 2014, EUR 2,235 million was recognised in Transfer to Other reserves (pension settlement) related to the Dutch defined benefit plan
settlement.
Changes in the defined benefit plans in 2014
In 2014, ING reached final agreement with the trade unions, the ING Pension Fund, the Central Works Council and the Association of
Retired ING Employees to transfer all future funding and indexation obligations under ING’s closed defined benefit plan in the
Netherlands to the Dutch ING Pension Fund. The agreement made the ING Pension Fund financially independent from ING.
The key elements of the agreement are:
• Responsibility for future indexation and funding thereof is transferred to the Dutch ING Pension Fund;
• ING's obligation to restore the coverage ratio of the Dutch ING Pension Fund ceased;
• The cross guarantees between ING Bank and NN Group to jointly and severally fund the obligations of the Dutch ING Pension Fund
are terminated;
• ING paid EUR 549 million (before tax) to the Dutch ING Pension Fund for the removal of these obligations; and
• ING will reduce the employees' own contribution to the pension premium under the new defined contribution plan by
approximately EUR 80 million over a 6 year period.
As part of the agreement, ING Bank is released from all financial obligations arising out of the Dutch defined benefit plan. Accordingly,
this plan is no longer accounted for as a defined benefit plan and consequently, it has been removed from ING’s balance sheet in 2014.
In 2014, the removal of the net pension asset related to the Dutch defined benefit pension fund from ING’s balance sheet of EUR 770
million (EUR 578 million after tax), the payment to the Dutch ING Pension Fund of EUR 549 million (EUR 412 million after tax), the
compensation for lower employee contribution of EUR 80 million (EUR 60 million after tax) and other impacts resulted in a charge of
EUR 1,413 million (EUR 1,059 million after tax). EUR 871 million (EUR 653 million after tax) of this charge was allocated to ING Bank.
Information on plan assets and defined benefit obligation per country
The defined benefit obligation per country and the plan assets per country can be specified as follows:
Plan assets
Defined benefit
obligation
2015
2014
2015
2014
The Netherlands
373
405
516
579
United States
132
132
212
218
United Kingdom
1,906
1,822
1,265
1,236
Belgium
601
614
731
811
Other countries
129
135
272
282
3,141
3,108
2,996
3,126
As at 31 December 2015 the various defined benefit plans did not hold any investments in ING Groep N.V. (2014: nil).
Determination of the net defined benefit asset/liability
The table provides the key assumptions used in the determination of the Net defined benefit asset/liability and the Other post-
employment benefits.
Plan assets and defined benefit obligation per country
ING Bank Annual Report 2015 98