213 348
213
Total plan membership is made up as follows:
31 December 2014
31 December 2013
Draka
Prysmian
Total
Draka
Prysmian
Total
pension fund pension fund
pension fund pension fund
Number of
Number of
Number of
Number of
Number of
Number of
participants
participants
participants
participants
participants
participants
Active
-
-
-
-
-
-
Deferred
563
615
1.178
583
630
1,213
Pensioners
411
327
738
395
312
707
Total membership
974
942
1,916
978
942
1,920
Both plans operate under trust law and are managed and
administered by a Board of Trustees on behalf of members
and in accordance with the terms of the Trust Deed and Rules
and current legislation. The assets that fund the liabilities are
held by the Trust, for both plans.
For the purposes of determining the level of funding, the
Trustees appoint an actuary to value the plans every three
years, with annual updates. The latest valuations of the Draka
pension fund and the Prysmian pension fund were conducted
on 25 March 2013 and 31 December 2011 respectively. The
valuation for the Prysmian Fund at 31 December 2014 will be
carried out and completed by 31 March 2016.
Even the contribution levels are set every three years at the
time of performing the valuation to determine the level of
plan funding. Currently, the contribution levels are set at
Euro 1.8 million a year for the Draka pension fund (Euro 1.7
million at 31 December 2013) and Euro 0.2 million a year for
the Prysmian pension fund (unchanged since the prior year).
The Trustees decide on the investment strategy in agreement
with the company. The strategies differ for both plans.
In particular, the Draka pension fund has invested a large
proportion of its assets in equities; the fund’s investment
split is as follows: 20% in equities, 38% in bonds and 42%
in other financial instruments. The Prysmian pension fund
has invested its assets as follows: 56% in bonds and the
remaining 44% in other financial instruments.
The main risk for the Prysmian Group in Great Britain is that
mismatches between the expected return and the actual
return on plan assets would require contribution levels to be
revised.
The liabilities and service costs are sensitive to the following
variables: inflation, salary growth, life expectancy of plan par-
ticipants and future growth in benefit levels. Another variable
to consider when determining the amount of the liability is
the discount rate, identified by reference to market yields of
AA corporate bonds denominated in GB pounds.
The Netherlands
During 2014, the liabilities accrued after 1996 relating to the
pension plan managed by Stichting Pensioenfonds Draka
Holding, to which three Dutch legal entities were party, were
transferred to Pensioenfonds van de Metalektro - PME, an
industry-wide multi-employer plan. Liabilities accrued before
1996 have remained with the employer companies and are
fully covered. The rules of the plan were the same for all the
participating entities and involved the payment of benefits
according to an average length of service and a general reti-
rement age of 65.
Total plan membership is made up as follows:
31 December 2014
31 December 2013
Number of participants Number of participants
Active
411
402
Deferred
512
608
Pensioners
1,084
1,038
Total membership
2,007
2,048