Billion Profit for DNB after the pension change

DNB´s CEO Rune BjerkeOslo 20151022. DNB-sjef Rune Bjerke legger fram tallene for 3. kvartal 2015 på en pressekonferanse i Oslo sentrum torsdag. Foto: Gorm Kallestad / NTB scanpix
DNB will be switching from defined advantage pensions to defined contribution pensions and collect a one-time gain of NOK two billion at the change.
DNB has decided to change the defined advantage plan which covers most employees in the Norwegian operations, to a defined contribution plan, said the bank in a press statement Monday.
According to DNB’s amendment required to be adapted to the Norwegian pension reform and the transition is carried out in consultation with employee representatives.
The deduction of existing pension liabilities in the fourth quarter of 2015 includes a gain of about 2 billion before taxes and will appear as a reduction in pension costs. This will also affect the capital adequacy positively, writes the bank.
Source: NTB scanpix / Norway Today