Svenska SpelSvenska Spel

Note 18 - Other non-current liabilities

  Group   Parent Company
SEK million 2013 2013 2012   2013 2012
Pension provisions  9 10   8 9
Subordinated debentures  15   15
Retailer collateral  6 7   6 7
Other non-current liabilities   
Total 15 32   15 31

The subordinated debentures comprise funds provided by the owner in conjunction with the construction of the Company’s property in Visby. The debt was settled in 2013.

In certain cases, AB Svenska Spel requires retailer collateral based on individual assessment of each retailer which is held for the duration the retailer is active, thereby making it a non-current liability.

Pension provisions

Pension provisions are calculated in the Parent Company according to the Pension Obligations Vesting Act and reported in the balance sheet as a non-current liability.

Alecta manages large portions of the ITP plan, which are insured via Collectum. The collective consolidation level is determined as the market value of Alecta’s assets as a percentage of insurance commitments calculated in line with Alecta’s actuarial methods and assumptions, which do not comply with IAS 19. The collective consolidation level is normally ­permitted to vary between 125% and 155%. If Alecta’s collective consolidation level falls below 125% or exceeds 155%, measures must be taken to create the requisite conditions for the level of consolidation to return to normal. One possible measure with a low consolidation level is to raise the contractual price for new subscriptions and expansion of existing benefits. One possible measure with a high consolidation level is to lower premiums. At the end of 2013, the preliminary amount for Alecta’s surplus in the form of the collective consolidation level was 1 to 148% (129). In 2013, costs for the Group’s pension insurance amounted to SEK 64.3 million (63.7), of which those taken out with Alecta amounted to SEK 35.1 million (36.2).

Svenska Spel also has a smaller pension commitment through Svenska Spel’s Pension Foundation. The funds at the disposal of the foundation do not fully cover the pension commitments. The difference is recognised as a non-current liability in the balance sheet.