27. Defined benefit obligations
Back to the list| 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% |
top