Page 84 - Annual Report KELAG Group 2018
P. 84

to secure a return, stability, profitability and sustainability for the long term. Valida Pension AG is
           a  wholly  owned  subsidiary  of Valida  Holding  AG.  KELAG  discusses  and  consults  with Valida
           Pension AG at regular intervals regarding the general investment strategy. The investment and
           risk management at Valida Pension AG is geared towards compliance with the laws governing
           pension  funds  and  the  related  regulatory  requirements  of  the  financial  market  supervisory
           authorities.

           The defined benefit plans expose the Group to actuarial risks, such as longevity risk, interest rate
           risk and market (investment) risk.












            THE EXPENSE FOR PROVISIONS FOR SEVERANCE PAYMENTS CAN
            BE BROKEN DOWN AS FOLLOWS
            Service cost                                            0.5        0.9
            Interest expenses                                       0.7        0.8
            SEVERANCE EXPENSES RECOGNISED IN THE INCOME STATEMENT   1.2        1.7
            Development of the provision
            Provision recognised as of 01/01                       73.9       77.9
            Net expense recognised through profit or loss           1.2        1.7
            Change in the fully recognised remeasurement of net liability from
            defined benefit plans (remeasurements)
              thereof demographic adjustments                       0.1        0.0
              thereof actuarial adjustments                         4.4        -0.4
              thereof experience adjustments                        0.9        -1.0
              Severance payments                                   -4.2       -4.2
            PROVISION RECOGNISED AS OF 31/12                      76.5        73.9
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