Page 106 - Annual Report 2010

ANNUAL REPORT 2010

104

The movements in the “Retirement benefit obligations” rounded to the nearest EUR 1 000 are as follows:

EUR Changes in Defined Benefit Obligation

as at 31.12.2010 EIF Pension Health Insurance Total 2010

Defined benefit obligation, Beginning of year 19 677 000 1 587 000 21 264 000 Net service cost 1 409 000 348 000 1 757 000 Interest cost 1 218 000 98 000 1 316 000 Employee contributions 1 365 000 0 1 365 000 Benefits Paid 203 000 0 203 000 Experience (Gain)/ Loss 1 137 000 162 000 1 299 000 (Gain)/ Loss due to assumption changes 10 448 000 1 156 000 11 604 000

Defined benefit obligation, End of year 35 457 000 3 351 000 38 808 000

EUR Changes in Defined Benefit Obligation

as at 31.12.2009 EIF Pension Health Insurance Total 2009

Defined benefit obligation, Beginning of year 15 340 000 1 298 000 16 638 000 Net service cost 1 655 000 286 000 1 941 000 Interest cost 938 000 78 000 1 016 000 Employee contributions 1 058 000 0 1 058 000 Benefits Paid 163 000 0 163 000 Experience (Gain)/ Loss 1 452 000 10 000 1 462 000 (Gain)/ Loss due to assumption changes (929 000) (85 000) (1 014 000)

Defined benefit obligation, End of year 19 677 000 1 587 000 21 264 000

Amounts for the current and previous four periods are as follows:

EUR History of asset values 2010 2009 2008 2007 2006

Defined Benefit Obligation, End of year (38 808 000) (21 264 000) (16 638 000) (13 748 000) (9 928 000)

Surplus/ (Deficit) in the Plan (38 808 000) (21 264 000) (16 638 000) (13 748 000) (9 928 000)

Experience Gains/ (losses) on DBO (1 299 000) (1 462 000) (647 000) (406 000) (430 000)

The Defined Benefit Obligation (DBO) at the end of the year is calculated using the DBO at the beginning of the year, plus net service cost, plus interest cost, plus employee contributions, plus net benefits paid, plus liability due to experi -ence, less gain due to assumption changes.

The effect of a 1% increase or decrease in the medical trend costs on the current service cost and interest cost, or the post-employment benefit obligation, would not have a material impact on the EIF’s financial statements.