PC2. Personnel and board costs

Salaries and remuneration

SEKm

2015

2014

¹⁾	Board fees decided by the Annual General Meeting amounted to SEK –6.4m (–7.8). For further information, see Notes C1, C2, C3 and C4.

Board of Directors ¹⁾, President, Executive Vice Presidents and senior executives (5 (5))

–85

–76

of which variable remuneration

–25

–32

Other employees

–149

–121

Total

–234

–197

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Social security costs

SEKm

2015

2014

²⁾

Of the Parent Company’s pension costs, SEK –100m (–36) pertains to the Board, President, Executive Vice President and senior executives. Former Presidents and Executive Vice Presidents and their survivors are also included. The company’s outstanding pension obligations to these individuals amount to SEK 409m (344).

Total social security costs

–272

–150

of which pension costs ²⁾

–198

–92

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Pension costs
SEKm	2015	2014

Self-administered pension plans
Costs excl. interest expense	–127	–43
Interest expense (recognized in personnel costs)	–12	–16
	–139	–59
Retirement through insurance
Insurance premiums	–27	–21
Other	5	7
	–161	–73
Policyholder tax	0	0
Special payroll tax on pension costs	–36	–16
Cost of credit insurance, etc.	–1	–3
Pension costs for the period	–198	–92

Premiums during the period for disability and family pension insurance with Alecta amounted to SEK –2m (–3). Premiums for 2016 are expected to amount to SEK 3m (see also Pension provisions in this note). Personnel costs also include other personnel costs in the amount of SEK –11m (–9).

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Average number of employees
	2015	2014
Sweden	118	117
of whom women, %	53	51

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Breakdown of employees by age groups, %
2015	21–30 yrs	31–40 yrs	41–50 yrs	51–60 yrs	61– yrs
	5	23	38	25	9

Women comprised 30% (17) of Board members and 35% (24) of senior executives.

Provisions for pensions

AP ACCOUNTING PRINCIPLES

The Parent Company applies the regulations in the Pension Obligations Vesting Act (Tryggandelagen). The main difference compared with IAS 19 is that Swedish practice disregards future increases in salaries and pensions when calculating the present value of the pension obligation. This present value includes, however, a special reserve for future payments of pension supplements indexed for inflation. Both defined contribution and defined benefit plans exist in the Parent Company.

PRI PENSIONS

Pension liabilities pertaining to PRI pensions have been secured through a common Swedish SCA pension fund. The market value of the Parent Company’s portion of the foundation’s assets at December 31, 2015 amounted to SEK 111m (98). In the past two years, no compensation has been received. The capital value of the pension obligations at December 31, 2015 amounted to SEK 119m (113). Pension payments of SEK –7m (–6) were made in 2015. Since the value of the assets in 2015 is below that of the pension obligations in the amount of SEK 8m (15), this is recognized as a provision in the balance sheet. The provision is included below.

Other pension obligations

The Group’s Note C3 Remuneration of senior executives describes the other defined benefit pension plans of the Parent Company. The table below shows the change between the years.

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Capital value of pension obligations relating to self-administered pension plans
SEKm	2015	2014

Value, January 1	619	598
Reclassification	–	–
Costs excluding interest expense	127	43
Interest expense (recognized in personnel costs)	12	16
Payment of pensions	–45	–38
BS Value, December 31	713	619

External actuaries have carried out capital value calculations pursuant to the provisions of the Swedish Act on Safeguarding of Pension Obligations. The discount rate is 1.9% (2.6). The defined benefit obligations are calculated based on salary levels valid on the respective balance sheet dates. Next year’s expected disbursements regarding defined benefit pension plans amount to SEK 34m.