Page 31 - Annual Report KELAG Group 2018
P. 31

invalidity or retirement upon reaching the imputed pension age, the actuarial experts – based on
                                      past experience – did not take any other reasons for leaving the company into account, such as
                                      employee turnover or similar reasons.

                                      The amount of the pensions depends on the period of service until completion in the respective
                                      group entity. The pension age taken as a basis for the calculations is the earliest possible age at
                                      which (early) retirement is possible in accordance with the relevant statutory regulations, taking
                                      transitional regulations into account.

                                      Based on company agreements and individual contracts, there is an obligation to pay pensions
                                      to certain employees under certain circumstances after they have retired. Earmarked pension
                                      trust funds exist for these defined benefit obligations at Valida Pension AG. There is an obligation
                                      on the part of the employer to make additional capital contributions. The pension fund assets are
                                      not available to the creditors of the Group, nor can they be paid directly to the Group. Fair value
                                      is based on market price information and, in the case of quoted securities, it is the published bid
                                      price. The pension fund assets are accounted for as plan assets as defined in IAS 19 and netted
                                      with the provisions for current pensions and claims to future pensions.

                                      The pension trust invests the pension trust funds mainly in different investment funds, with due
                                      regard to the regulations of the PKG (Austrian Pension Fund Act).

                                      KELAG  offers  its  employees  who  commenced  employment  with  the  company  on  or  after
                                      1 January 1992  and  whose  employment  contract  has  not  been  cancelled  and  is  of  indefinite
                                      duration an additional pension scheme to the statutory pension entitlement under the ASVG
                                      (Austrian  General  Social  Security  Act),  thereby  giving  those  employees  the  opportunity  to
                                      privately  build  an  additional  supporting  pillar  for  their  pension  plans  with  the  help  of  the
                                      company. The pension trust fund offers a defined contribution pension system, where the amount
                                      of  future  pensions  is  calculated  based  on  the  employer  and  employee  contributions  until
                                      retirement age is reached.

                                      From the date of inclusion in the pension fund model, KELAG makes a monthly contribution
                                      payment of 3% of the remuneration components up to the ASVG maximum assessment base and
                                      15% of the remuneration components in excess of the maximum assessment base in advance
                                      until the employment contract is terminated or a pension fund benefit is drawn. Remuneration is
                                      defined  as  the  relevant  monthly  remuneration  including  the  loyalty  bonus,  any  additional
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