21. Pension obligations

The Group has one defined benefit pension plan in India, including the whole personnel of the Indian subsidiary. The pension plan constitute the obligatory pension and termination benefits for the employees, and the amount of the plan benefit is based on final salary and number of years in service.



EUR 1,000 2016 2015



Defined benefit liability in the balance sheet:
Present value of funded obligations 988 877
Fair value of plan assets (-) -58 -142
Net liability (+) / net asset (-) in the balance sheet 930 735



Recociliation of the changes in balance sheet

Net liability (+) / net asset (-) in the balance sheet in the beginning of the period 735 482
Pension expense recognised in profit and loss 199 187
Remeasurement items recognised in other comprehensive income 59 107
Translation differences -63 -41
Net liability (+) / net asset (-) in the balance sheet at the end of the period 930 735



Defined benefit expense in profit and loss
Current service cost 146 147
Interest income (-) and expense (+), net 53 40
Pension expense recognised in profit and loss (note 5) 199 187



Change in the defined benefit obligation:
Defined benefit obligation in the beginning of the period 877 678
Current service cost 146 146
Interest cost 65 56
Remeasurement items:

Gains (-) / losses (+) arising from changes in demographical assumptions
102
Actuarial gains (-) / losses (+) arising from changes in financial assumptions 61 23
Gains (-) / losses (+) arising from experience adjustments 5 -22
Translation differences 5 44
Benefits paid (-) -172 -150
Defined benefit obligation at the end of the period 988 877



Change in plan assets:
Plan assets in the beginning of the period 142 195
Interest income 11 17
Remeasurement items:

Return on plan assets excluding amounts included in interest income (+/-) 5 -2
Translation differences 1 13
Payments from the plan: 70 69
Benefits paid (-) -172 -150
Plan assets at the end of the period 57 142







2016 2015



Actuarial assumptions at the reporting date % %
Discount rate 6.6 8.0
Future salary increases, first year 8.0 8.0
Future salary increases, thereafter 8.0 8.0



Assumed normal retirement age is 60 years. The turnover of the employees is assumed to decline evenly in line with the growing age, being 1 % for over 55 year olds and 15 % for under 30 year olds. Assumptions concerning mortality are made in accordance with the actuary's instructions and they are based on statistics and experience.


There is no information available on plan assets because they are commonly invested by the incurance company.


Contributions to be paid in year 2017 are expected to be EUR 167 thousand. The duration is five years.



Sensitivity analysis




The sensitivity analysed below is calculated all other factors remaining unchanged.


2016




Change in discount rate, percentage points +1% -1%
Impact on the defined benefit obligation, EUR 1,000 -43 47



Change in future salary increases, percentage points +1% -1%
Impact on the defined benefit obligation, EUR 1,000 36 33






2015




Change in discount rate, percentage points +1% -1%
Impact on the defined benefit obligation, EUR 1,000 -37 40



Change in future salary increases, percentage points +1% -1%
Impact on the defined benefit obligation, EUR 1,000 33 -32