AAK Annual Report 2020

AAK Annual Report 2020 90 2020 2019 Change in defined benefit liability Net liability at January 1 241 206 Net cost recognized in the income statement 38 35 Benefits paid -11 -11 Disbursement of funds from the foundation 11 11 Contributions by employer to funded obligations -26 -28 Actuarial losses/gains arising from changes in demographic assumptions 25 21 Actuarial losses/gains arising from changes in financial assumptions - - Actuarial losses/gains arising from changes in experience - - Exchange rate differences on foreign plans -5 3 Reclassifications 5 4 Net liability at December 31 278 241 Composition of plan assets (%) Fixed income 43 40 Shares 23 22 Properties 6 5 Alternative investments 28 33 The entire pension obligation in the Netherlands concerns alternative investments. Contributions to plans for post-employment benefits for the 2021 fiscal year are expected to amount to SEK 34 million. The weighted average term of the pension obligation is 17–19 years. Key actuarial assumptions (%) Netherlands Discount rate 0.75 1.05 Inflation 1.05 1.05 Future annual salary increases 2.35 2.35 Sweden Discount rate 0.90 1.70 Inflation 1.50 1.80 Future annual salary increases 2.50 2.80 Note 9 | Provisions for pensions and similar obligations