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21. Pension obligations
           
MEUR 2010 2009
Recognised asset for defined benefit plan at 31 December 12 8
Recognised liability for defined benefit obligations 20 20
Long-service leave and other past service obligations 36 26
Total past service obligations at 31 December 56 46
           
Pension cover is based on the legislation and agreement in force in each country. In Finland, most of the pension obligations are covered by the Employee Pensions system (TyEL). The largest defined benefit plans are used in the Netherlands, Switzerland and the United Kingdom. Most of these defined benefit pension plans are managed by pension funds and their assets are not included in the Group's assets. Wärtsilä's subsidiaries make their payments to pension funds in accordance with the local legislation and practice in each country. Authorised actuaries in each country have performed the actuarial calculations required for the defined benefit plans.
           
Long-service leave and other past service obligations are mainly obligation for benefit payments in Italy and France.
           
Movement in defined benefit obligations 2010 2009
Defined benefit obligations at 1 January 254 229
Exchange rate differences 32 6
Current service costs 13 11
Interest cost 11 9
Benefits paid -12 -13
Curtailments and settlements -2  
Changes in actuarial gains and losses 14 3
Impact of acquired and disposed companies and other changes 4 8
Defined benefit obligations at 31 December 315 254
           
Movement in plan assets    
Fair value of plan assets at 1 January 227 198
Exchange rate differences 30 4
Contribution paid to the fund 16 14
Benefits paid by the plan -9 -12
Expected return on plan assets 11 9
Actuarial gains and losses   13
Total 275 227
Unrecognised assets   -2
Recognised fair value of plan assets at 31 December 275 225
           
Unrecognised actuarial gains and losses    
Unrecognised actuarial gains and losses at beginning of year -18 -21
Exchange rate differences -2 -2
Actuarial gains and losses for year -obligations -13 -7
Actuarial gains and losses for year -plan assets   13
Impact of acquired/disposed companies and other changes 1 -1
Unrecognised actuarial gains and losses at the year end -32 -18
           
Recognised net liability for defined benefit obligations 9 12
           
Expenses recognised in income statement    
Current service costs 13 11
Interest on obligation 11 9
Expected return on plan assets -11 -9
Actuarial gains and losses 1 1
Gains and losses on curtailments and settlements -2  
Defined benefit expenses 12 12
           
Actual return on plan assets 10 19
           
Historical information 2010 2009 2008 2007 2006
Present value of the defined benefit obligation 315 254 229 212 307
Fair value of plan assets -275 -227 -198 -202 -295
Deficit in the plan 40 28 31 9 12
           
Plan assets invested in:       2010 2009
Equity instruments (%)       24 24
Bonds and other financial instruments (%)       47 49
Properties (%)       16 14
Other assets (%)       13 14
           
Actuarial assumptions 2010       Europe Other
Discount rate (%)       2.5-5.4 1.5-12.5
Expected return on plan assets (%)       4.0-7.2 1.75-10.5
Future salary increases (%)       1.0-4.0 4.0-15.0
           
Actuarial assumptions 2009       Europe Other
Discount rate (%)       3.25-5.4 1.5-12.0
Expected return on plan assets (%)       3.5-6.3 1.5-16.0
Future salary increases (%)       1.0-4.5 1.2-10.0