27. Defined benefit obligations

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  31 December 2012
RUB million
31 December 2011
RUB million
Pension obligations, long-term 904 530
Post-retirement obligations other
than pensions
353 392
  1,257 922

Defined benefit pension plans relate to two subsidiaries of the Company: OJSC "Apatit" and OJSC "PhosAgo-Cherepovets". 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 present value of the defined benefit obligations is as follows:

  RUB million
Defined benefit obligations at 1 January 2011 931
Benefits paid (67)
Current service costs and interest 75
Actuarial gains in other comprehensive income (17)
Defined benefit obligations at 1 January 2012 922
Benefits paid (190)
Current service costs and interest 121
Past service costs 1
Curtailment gain (23)
Actuarial loss in other comprehensive income 426
Defined benefit obligations at 31 December 2012 1,257

The key actuarial assumptions used in measurement of the defined benefit obligations are as follows:

  31 December 2012
RUB million
31 December 2011
RUB million
Discount rate 7% 8%
Future pension increases 5% 6%
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