Note 19
Pension assets
The Group operates several retirement plans. In Finland, employees' pension insurance is partly arranged with insurance companies
and partly with the Kesko Pension Fund, whose department A granting additional benefits was closed on 9 May 1998. The pension
plan arranged with the Kesko Pension Fund is classified as a defined benefit plan.
As regards foreign subsidiaries, the plan adopted in the Norwegian subsidiary is the only pension plan classified as a defined
benefit plan. The nature of the pension plan in Norway and Norwegian legislation have changed during the 2008 accounting period
to the effect that a significant number of the company's employees have transferred from the defined benefit plan. At 31 December
2008, the net debt relating to the defined benefit plan in Norway was €0.5 million (€2.9 million).
Pension plans in other foreign subsidiaries are arranged in accordance with local regulations and practices. They do not contain
significant defined benefit plans.
In calculating the IAS 19 pension obligation of the Kesko Pension Fund's department B, the funded amounts of retirement pensions
have only been increased by the fund interest rate (3%) for 2008 and 2009.
In calculating the Pension Fund's expected income, the invested assets are divided into five categories. The total expected income
from the investment portfolio (6.6%) is composed of the combined income from these assets. The income expected from different
assets is based on the parameters of an investment portfolio analysis model widely used in employee pension schemes, and calculated
from long-term historical data. The most significant type of assets affecting the total income is shares, further divided into
nine geographical subgroups with expected income ranging between 8.5%–12.3%.