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Annual report 2011
84
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 31.12.2011
EIF Pension Health Insurance
Total 2011
Defined benefit obligation, Beginning of year
35 457 000
3 351 000
38 808 000
Net service cost
3 182 000
678 000
3 860 000
Interest cost
1 794 000
170 000
1 964 000
Employee contributions
2 015 000
0
2 015 000
Benefits Paid
178 000
0
178 000
Experience Loss
4 997 000
128 000
5 125 000
(Gain) due to assumption changes
(6 472 000)
(1 075 000)
(7 547 000)
Defined benefit obligation, End of year
41 151 000
3 252 000
44 403 000
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 Loss
1 137 000
162 000
1 299 000
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
Amounts for the current and previous four periods are as follows:
History of asset values
2011
2010
2009
2008
2007
Defined Benefit Obligation, End of year
(44 403 000)
(38 808 000)
(21 264 000)
(16 638 000)
(13 748 000)
Deficit in the Plan
(44 403 000)
(38 808 000)
(21 264 000)
(16 638 000)
(13 748 000)
Experience Losses on DBO
(5 125 000)
(1 299 000)
(1 462 000)
(647 000)
(406 000)
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 result 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.