ING Direct 2015 Annual Report Download - page 98

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
Additional notes to the Consolidated annual accounts
34 Pension and other post-employment benefits
ING Bank maintains defined contribution and defined benefit plans. In 2015, the remaining defined benefit plans of the Bank are
mainly within the United Kingdom and Belgium.
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.
Balance sheet - Net defined benefit asset/liability
2015
2014
Fair value of plan assets
3,141
3,108
Defined benefit obligation
2,996
3,126
Funded status (Net defined benefit asset/(liability))
145
–18
Presented as:
– Other assets
643
589
– Other liabilities
–498
–607
145
–18
ING Bank maintains defined benefit retirement plans in some countries. 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.
ING Bank 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.
The most recent (actuarial) valuations of the plan assets and the present value of the defined benefit obligation were carried out as at
31 December 2015. The present value of the defined benefit obligation, and the related current service cost and past service cost, were
determined using the projected unit credit method.
Changes in the fair value of plan assets for the period were as follows:
2015
2014
Opening balance
3,108
15,164
Interest income
93
172
Remeasurements: Return on plan assets excluding amounts included in interest income
–72
1,009
Employer's contribution
34
643
Participants contributions
13
7
Benefits paid
–170
–178
Effect of curtailment or settlement
–13,788
Exchange rate differences
135
120
Changes in the composition of the group and other changes
–41
Closing balance
3,141
3,108
Summary of net defined benefit asset/liability
Changes in fair value of plan assets
ING Bank Annual Report 2015 96