Notes to the financial statements 9b Retirement benefit obligations DEFINED BENEFIT PLANS IN SEB GROUP Net amount recognised 2007 2006 in the Balance sheet Sweden1) Foreign1) Group1) Sweden1) Foreign1) Group1) Defined benefit obligation at the beginning of the year 14,312 5,016 19,328 13,233 4,958 18,191 Acquisitions and reclassification –55 –55 16 16 Service costs 347 99 446 296 110 406 Interest costs 523 222 745 483 205 688 Benefits paid –779 –242 –1,021 –709 –213 –922 Exchange differences 228 228 –184 –184 Unrecognised actuarial gains/losses 2,076 –508 1,568 1,009 124 1,133 Defined benefit obligation at the end of the year 16,479 4,760 21,239 14,312 5,016 19,328 Fair value of plan assets at the beginning of the year 17,579 4,472 22,051 16,533 4,193 20,726 Acquisitions and reclassification –77 –77 Calculated return on plan assets 1,317 260 1,577 1,240 263 1,503 Benefits paid/contributions –782 –216 –998 –709 170 –539 Exchange differences 205 205 –158 –158 Unrecognised actuarial gains/losses –1,123 –116 –1,239 515 4 519 Fair value of plan assets at the end of the year 16,991 4,528 21,519 17,579 4,472 22,051 Funded status 512 –232 280 3,267 –544 2,723 Unrecognised actuarial gains/losses on liabilities 5,989 348 6,337 3,914 856 4,770 Unrecognised actuarial gains/losses on assets –2,162 2 –2,160 –3,285 –114 –3,399 Exchange differences 11 11 –6 –6 Net amount recognised in the Balance sheet 4,339 129 4,468 3,896 192 4,088 of which recognised as assets 4,373 192 4,565 3,908 238 4,146 of which recognised as liabilities 34 63 97 12 46 58 Movements in the net assets or net liabilities Defined benefit obligation at the beginning of the year 3,896 192 4,088 3,441 –118 3,323 Acquisitions and reclassification –24 –24 16 16 Total expense as below 446 –77 369 455 –67 388 Pension paid 779 242 1,021 709 213 922 Pension compensation –782 –216 –998 –709 170 –539 Exchange differences 12 12 –22 –22 Amounts recognised in Balance sheet 4,339 129 4,468 3,896 192 4,088 The actual return on plan assets was SEK 175m (1,755) in Sweden and SEK 113m (267) in foreign plans. The allocation of total plan assets in Sweden is 78 per cent (76) shares and 22 (24) interest-bearing, in foreign plans 24 (25) shares and 76 (75) interest-bearing. The pension plan assets include SEB shares with a fair value of SEK 903m (1,092) and buildings occupied by the company with a value of SEK 792m (792). Amounts recognised in the Profit and loss Service costs –347 –99 –446 –296 –110 –406 Interest costs –523 –222 –745 –483 –205 –688 Return on plan assets 1,317 260 1,577 1,240 263 1,503 Actuarial gains/losses –1 –16 –17 –6 –15 –21 Total included in staff costs 446 –77 369 455 –67 388 Principal actuarial assumptions used, % Discount rate 3.8% 5.5% 3.8% 4.3% Inflation rate 2.0% 2.0% 2.0% 1.5% Expected rate of salary increase 3.5% 3.0% 3.5% 2.3% Expected rate of increase in the income basis amount 3.0% 3.0% Expected rate of return on plan assets 7.5% 6.0% 7.5% 6.0% 1) Defined benefit obligations and plan assets are disclosed gross in the table. There exist no legal right to offset obligations and assets between entities in the group but in the balance sheet the net amount is recognised for each entity either as an asset or liability. DEFINED CONTRIBUTION PLANS IN SEB GROUP Net amount recognised 2007 2006 in the Profit and loss Sweden Foreign Group Sweden Foreign Group Expense in Staff costs –487 –246 –733 –467 –236 –703 76 SEB ANNUAL REPORT 2007
