Page 31 - Annual Report KELAG Group 2018

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