PC2. Personnel and board costs
SEKm |
2018 |
2017 |
||
|
||||
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 |
||
SEKm |
2018 |
2017 |
||
|
||||
Total social security costs |
–147 |
–124 |
||
of which pension costs2) |
–89 |
–61 |
||
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).
|
2018 |
2017 |
Sweden |
110 |
116 |
of whom women, % |
49 |
49 |
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.
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.