27. Defined benefit obligations
| RUB million | 2011 | 2010 |
|---|---|---|
| Pension obligations, long-term | 530 | 549 |
| Post-retirement obligations other than pensions | 392 | 382 |
| 922 | 931 |
Defined benefit — pension plans relate to three subsidiaries of the Company: OJSC “Apatit”, OJSC “Ammophos” and JSC “Cherepovetsky “Azot”. The plans stipulate payment of a fixed amount of monthly pension to all retired employees, who have a specified period of service in the entities. The pension increases with the increase of the service period. The pension is paid over the remaining life of the pensioners. In addition, there is a defined benefit plan other than the pension plan in OJSC “Apatit”. This defined benefit plan stipulates payment of a lump sum to employees who have a specified period of service in OJSC “Apatit” upon their retirement. All defined benefit plans are unfunded.
The movement in the defined benefit obligation is made up as follows:
| RUB million | Pension obligation | Post-retirement obligation other than pension |
|---|---|---|
| Present value of defined benefit obligation at 31 December 2009 | 418 | 228 |
| Interest cost | 31 | 17 |
| Benefit paid | (119) | (21) |
| Recognised actuarial losses | 219 | 158 |
| Present value of defined benefit obligation at 31 December 2010 | 549 | 382 |
| Interest cost | 44 | 31 |
| Benefit paid | (46) | (21) |
| Recognised actuarial gains | (17) | — |
| Present value of defined benefit obligation at 31 December 2011 | 530 | 392 |
The key actuarial assumptions used in measurement of the defined benefit obligation are as follows:
| 2011 | 2010 | |
|---|---|---|
| Discount rate | 8% | 7% |
| Future pension increases | 6% | 6% |
Notes to the Consolidated Financial Statements