Note 23

Pension costs and pension liabilities

HAVFISK mainly covers its pension liabilities through a group pension scheme with a life insurance company. For accounting purposes this is treated as a defined benefit plan. HAVFISK is required to have collective occupational pensions in accordance with the Pensions Act. The company has both defined benefit and defined contribution pension schemes. The pensions schemes satisfy the requirements of the Mandatory Occupational Pensions Act. HAVFISK also has unsecured pension insurance, which the company covers in operations. Future pension commitments will be calculated by an actuary and entered as for defined benefit schemes. The pension schemes are connected with operations onshore, since fishermen are not covered by the mandatory occupational pension scheme. The discount rate for 2015 is based on OMF (preferential bonds) . The assumptions used are in line with the recommendations of the Norwegian Accounting Standards Board. Actuarial calculations have been performed to determine pension liabilities and pension costs in connection with the Group's defined benefit schemes. The following assumptions have been made when calculating liabilities and expenses:

Discount rate	2,6 %	2,5 %
Projected yield	2,6 %	2,5 %
Salary growth	2,5 %	3,3 %
Adjustment of National Insurance Scheme's basic amount (G)/Inflation	2,3 %	3,0 %
Pension adjustment	0,8 %	1,3 %

Pension expense recognised in the income statement:
NOK million	Accounts 2015	Accounts 2014
Expense relating to current vesting period		-
Interest expense on accrued pension liabilities	1	1
Expected yield on pension assets	(1)	(1)
Administration costs	-	-
Employer's national insurance contributions
Pension expense recognised for defined benefit schemes	-	-
Defined contribution schemes (employer's contributions)	1	2
Total pension expense recognised in the income statement	1	2

Pension expense recognised in comprehensive income	1	3
Total pension costs for the year	2	5

Net pension assets and pension liabilities:
NOK million	Accounts 2015	Accounts 2014
Liability secured defined benefit schemes (funded)	(29)	(32)
Liability unsecured defined benefit schemes (unfunded)
Fair value of pension assets	22	25
Estimated net present value of pension liabilities	(7)	(7)
Net actuarial gains and losses not recognised in the balance sheet	-	-
Cost of pension entitlements relating to previous periods not recognised in the balance sheet	-	-
Net liability for defined benefit pension liabilities	(7)	(7)

Pension assets	22	25
Pension liabilities	(29)	(32)

Number of persons in defined benefit scheme	33	36
Of which pensioners	30	32

Changes in present value of defined benefit pension liabilities:
NOK million	Accounts 2015	Accounts 2014
Net pension liabilities as of 1 January	(7)	(5)
Expense relating to current vesting period	-	-
Interest expense on accrued pension liabilities	(1)	(1)
Return on pension funds	1	1
Actuarial gains and losses in included in comprehensive income	(1)	(3)
Payment of pensions	2	2
Pension liabilities as of 31 December	(7)	(7)

The major categories of pension assets as a percentage of total pension assets are as follows:
NOK million	Accounts 2015	Accounts 2014
Bonds	88,0 %	79,3 %
Money market	5,0 %	11,5 %
Shares	4,1 %	6,5 %
Property	0,0 %	0,0 %
Other	2,9 %	2,7 %
Total	100,0 %	100,0 %
The Group expects to contribute approximately NOK 2 million to pension funds in 2015.

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