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Note 17 - Post-employment Benefits
 Pension and Post-Employment Benefit Provisions
Balance Sheet Reconciliation
Amounts Recognised in the Balance Sheet
Amounts Recognised in the Income Statement
Weighted Average Assumptions Used in Calculating Benefit Obligations
Benefit Plan Reconciliation
The Group has established a number of pension plans for its operations throughout the world. In Finland pension cover is now entirely arranged through local insurance companies, though in previous years some cover was provided through Stora Enso's own funds, which were closed in 2000 and 2001. In Sweden cover is arranged through both insurance companies and through book reserves in accordance with the Swedish "PRI/FPG System" applying to the vast majority of large Swedish corporations. Pension arrangements outside Scandinavia are made in accordance with the regulations and practice of the countries in question, mostly being defined benefit pension plans with retirement, disability, death and termination income benefits; the retirement benefits are generally a function of years worked and final salary and are coordinated with local national pensions. The Group also has some fully insured plans and defined contribution plans, the charge to the Income Statement for the latter amounting to EUR 223.1 (EUR 143.8) million for the year.
Group policy for funding its defined benefit plans is intended to satisfy local statutory funding requirements for tax deductible contributions, together with adjusting to market rates the discount rates used in actuarial calculations of liability in book reserves; the charge in the Income Statement for year amounted to EUR 6.3 (EUR 47.2) million.
The Group also funds certain other post-employment benefits in North America relating to retirement medical and life insurance programmes, the charge for the year being EUR 30.9 (EUR 7.6) million.
Stora Enso was previously entitled to borrow from its related party pension funds in Finland. At 31 December 2000 such borrowings amounted to EUR 17.5 million, with interest expense thereon of EUR 10.8 million for the year, but this was repaid in early 2001 together with a negligible interest sum.
Retirement age for the management of Group companies has been agreed at between 60 and 65 years and for members of the Executive Management Group at 60 years.
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| Defined benefit plans |
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373.5 |
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323.3 |
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| Other post-employment benefits |
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207.1 |
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245.0 |
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| Stora Enso North America, Corp. : Overfunded pension plan shown in assets (Note 13) |
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191.2 |
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205.7 |
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| Total Liability |
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771.8 |
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774.0 |
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| Net liability at 1 January |
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575.5 |
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771.8 |
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| Translation difference |
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-10.6 |
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18.5 |
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| Acquisition |
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223.0 |
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-7.4 |
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| Increase |
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55.4 |
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4.0 |
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| Decrease |
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-71.5 |
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-12.9 |
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| Net Liability at 31 December |
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771.8 |
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774.0 |
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