PC2. Personnel and board costs

Salaries and remuneration

SEKm

2018

2017

1)

Board fees decided by the Annual General Meeting amounted to SEK –9m (–9). For further information, see Note C1, Note C2, Note C3 and Note C4.

Board of Directors1), President, Executive Vice Presidents and senior executives (4 (5))

–67

–67

of which variable remuneration

–22

–28

Other employees

–118

–134

Total

–185

–201

Social security costs

SEKm

2018

2017

2)

Of the Parent Company’s pension costs, SEK –14m (–16) pertains to the Board, President, Executive Vice President and senior executives. Former Presidents and Executive Vice Presidents and their survivors are also included. The company’s outstanding pension obligations to these individuals amount to SEK 46m (51).

Total social security costs

–147

–124

of which pension costs2)

–89

–61

Pension costs

SEKm

2018

2017

Self-administered pension plans

 

 

Costs excluding interest expense

–38

–49

Interest expense (recognized in personnel costs)

–5

–6

Sub-total

–43

–55

Retirement through insurance

 

 

Insurance premiums

–31

–18

Other

4

32

Sub-total

–70

–41

Policyholder tax

0

0

Special payroll tax on pension costs

–16

–17

Cost of credit insurance, etc.

–3

–3

Pension costs for the period

–89

–61

Premiums during the year for disability and family pension insurance with Alecta amounted to SEK –2m (–2). Premiums for 2019 are expected to amount to SEK 2m (see also Provisions for pensions in this note). Personnel costs also include other personnel costs in the amount of SEK –8m (–8).

Average number of employees

 

2018

2017

Sweden

110

116

of whom women, %

49

49

Breakdown of employees by age groups, %

2018

21–30 yrs

31–40 yrs

41–50 yrs

51–60 yrs

61– yrs

 

1

22

40

28

9

Women comprised 50% (46) of Board members and 25% (36) of senior executives.

Provisions for pensions

AP Accounting principles

The Parent Company applies the regulations in the Pension Obligations Vesting Act (Tryggandelagen). Recognition complies with the simplification rule for defined benefit pension plans in accordance with the voluntary exception in RFR 2 regarding IAS 19. The main difference compared with IAS 19 is that Swedish GAAP disregards future increases in salaries and pensions when calculating the present value of the pension obligation. This present value includes, however, a special reserve for future payments of pension supplements indexed for inflation. Both defined contribution and defined benefit plans exist in the Parent Company.

PRI Pensions

Pension liabilities pertaining to PRI pensions have been secured through a common Swedish Essity pension fund. The market value of the Parent Company’s portion of the foundation’s assets at December 31, 2018 amounted to SEK 191m (151). In 2018, compensation was received in the amount of SEK 6m (–). The capital value of the pension obligations at December 31, 2018 amounted to SEK 159m (134). Pension payments of SEK –5m (–6) were made in 2018. In 2018, the assets exceeded pension obligations by SEK 32m (17).

Other pension obligations

The Group’s Note C3 Remuneration of senior executives describes the other defined benefit pension plans of the Parent Company. The table below shows the change between the years.

Capital value of pension obligations relating to self-administered pension plans

SEKm

2018

2017

Value, January 1

878

839

Compensation received for assumed pension obligations

21

Costs excluding interest expense

38

49

Interest expense (recognized in personnel costs)

5

6

Payment of pensions

–48

–37

BS Value, December 31

873

878

External actuaries have carried out capital value calculations pursuant to the provisions of the Swedish Act on Safeguarding of Pension Obligations. The discount rate is 0.6% (0.7). The defined benefit obligations are calculated based on salary levels valid on the respective balance sheet dates. All of the company’s pension obligations were transferred from Svenska Cellulosa Aktiebolaget SCA on December 31, 2016. The pension obligations were formerly transferred when the County Administrative Board granted its approval in 2017. Next year’s expected payments for the above defined benefit pension plans amount to SEK 52m. Part of the pension obligations are covered by capital redemption policies. The capital redemption policies are reported as other non-current receivables in the balance sheet.