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Defined benefit plans (Tables)

12 Months Ended

Dec. 31, 2019


	2019			2018
Retirement benefit plans		4,076			3,714
Other post-employment benefit plans		283			275
Total defined benefit plans		4,359			3,989
			-
Retirement benefit plans in surplus		1			-
Other post-employment benefit plans in surplus		-			-
Total defined benefit assets		1			-
			-
Retirement benefit plans in deficit		4,077			3,714
Other post-employment benefit plans in deficit		283			275
Total defined benefit liabilities		4,360			3,989

Summary of Movements of Defined Benefit Plans


	2019									2018
Movements during the year in defined benefit plans	Retirement benefit plans			Other post- employment benefit plans			Total			Retirement benefit plans			Other post- employment benefit plans			Total
At January 1		3,714			275			3,989			3,657			293			3,950
Defined benefit expenses		227			17			244			192			13			206
Remeasurements of defined benefit plans		607			5			612			157			(23	)		134
Contributions paid		(298	)		-			(298	)		(234	)		-			(234	)
Benefits paid		(100	)		(18	)		(118	)		(99	)		(19	)		(118	)
Net exchange differences		14			4			18			37			11			47
Other 1)		(89	)		-			(88	)		5			-			5
At December 31		4,076			283			4,359			3,714			275			3,989

1	In 2019, ‘Other’ mainly relates to the plan amendment from The Netherlands as described in the section on ‘Aegon the Netherlands’ in this note.

Summary of Amounts Recognized in Statement of Financial Positions

The amounts recognized in the statement of financial position are determined as follows:


				2019								2018
	Retirement benefit plans			Other post- employment benefit plans		Total			Retirement benefit plans			Other post- employment benefit plans		Total
Present value of wholly or partly funded obligations		4,807			-		4,807			4,027			-		4,027
Fair value of plan assets		(4,420	)		-		(4,420	)		(3,525	)		-		(3,525	)
		386			-		386			502			-		502
Present value of wholly unfunded obligations 1)		3,690			283		3,973			3,212			275		3,487
At December 31		4,076			283		4,359			3,714			275		3,989

As all pension obligations are insured at subsidiary Aegon Levensverzekering almost all assets held by Aegon Nederland backing retirement benefits of EUR 2,736 millions (2018: EUR 2,568 million) do not meet the definition of plan assets and as such were not deducted in calculating this amount. Instead, these assets are recognized as general account assets. Consequently, the return on these assets does not form part of the calculation of defined benefit expenses.

Summary of Fair Value of Plan Assets

The fair value of Aegon’s own transferable financial instruments included in plan assets and the fair value of other assets used by Aegon included in plan assets was nil in both 2019 and 2018.


				2019								2018
Defined benefit expenses	Retirement benefit plans			Other post- employment benefit plans		Total			Retirement benefit plans			Other post- employment benefit plans			Total
Current year service cost		148			8		157			121			10			131
Net interest on the net defined benefit liability (asset)		80			9		89			87			8			96
Past service cost		(1	)		-		(1	)		(16	)		(5	)		(21	)
Total defined benefit expenses		227			17		244			192			13			206


				2017
	Retirement benefit plans			Other post- employment benefit plans			Total
Current year service cost		148			11			158
Net interest on the net defined benefit liability (asset)		99			10			109
Past service cost		(5	)		(1	)		(6	)
Total defined benefit expenses		242			19			262

Summary of Breakdown of Plan Assets for Retirement of Benefit Plans


	2019										2018
Breakdown of plan assets for retirement benefit plans	Quoted		Unquoted		Total		in % of total plan assets		Quoted		Unquoted		Total		in % of total plan assets
Equity instruments		160		3		164		4%		106		5		111		3%
Debt instrument		465		361		826		19%		369		343		712		20%
Real estate		-		119		119		3%		-		111		111		3%
Derivatives		-		57		57		1%		-		149		149		4%
Investment funds		3		2,484		2,487		56%		11		1,945		1,956		55%
Other		15		752		767		17%		14		471		484		14%
At December 31		644		3,776		4,420		100%		500		3,025		3,525		100%

Summary of Actuarial Assumptions used to Determine Defined Benefit Obligations


Actuarial assumptions used to determine defined benefit obligations at year-end	2019		2018
Demographic actuarial assumptions
Mortality		US mortality table 1)		US mortality table 2)

Financial actuarial assumptions
Discount rate 3)		3.23%/3.02%		4.22% / 4.05%
Salary increase rate		4.00%		3.85%
Health care trend rate		6.60%		7.00%

1	2019 assumption- PRI-2012 Employee, Health Annuitant and Contingent Survivor Tables (90% white collar/ 10% blue collar) projected with Scale MP -2019.

2	2018 Assumption- RP2014 Employee and Health Annuitant Tables projected with Scale MP - 2018

3	Aegon USA has separate discount rates beginning with 2018 – 3.23% for all pension plans and 3.02% for post retirement welfare plan 2019.

The principal actuarial assumptions have an effect on the amounts reported for the defined benefit obligation. A change as indicated in the table below in the principal actuarial assumptions would have the following effects on the defined benefit obligation per

year-end:


	Estimated approximate effects on the defined benefit obligation
	2019			2018

Demographic actuarial assumptions
10% increase in mortality rates		(83	)		(70	)
10% decrease in mortality rates		92			77

Financial actuarial assumptions
100 basis points increase in discount rate		(417	)		(351	)
100 basis points decrease in discount rate		514			430
100 basis points increase in salary increase rate		29			29
100 basis points decrease in salary increase rate		(27	)		(26	)
100 basis points increase in health care trend rate		12			12
100 basis points decrease in health care trend rate		(11	)		(11	)

Commissions and expenses [member]

Statement [LineItems]

Summary of Movements of Defined Benefit Plans


Movements during the year of the present value of the defined benefit obligations	2019			2018
At January 1		7,514			7,572
Current year service cost		157			131
Interest expense		221			213
Remeasurements of the defined benefit obligations:
- Actuarial gains and losses arising from changes in demographic assumptions		40			(28	)
- Actuarial gains and losses arising from changes in financial assumptions		1,126			(102	)
Past service cost		(1	)		(21	)
Contributions by plan participants		8			11
Benefits paid		(353	)		(409	)
Net exchange differences		144			144
Other 1)		(76	)		5
At December 31		8,779			7,514

1	In 2019, ‘Other’ mainly relates to the plan amendment from Aegon the Netherlands as described in the section on ‘Aegon the Netherlands’ in this note.


Movements during the year in plan assets for retirement benefit plans	2019			2018
At January 1		3,525			3,622
Interest income (based on discount rate)		133			117
Remeasurements of the net defined liability (asset)		566			(264	)
Contributions by employer		306			245
Benefits paid		(235	)		(291	)
Net exchange differences		126			96
At December 31		4,420			3,525

Aegon United Kingdom [member]

Statement [LineItems]

Summary of Actuarial Assumptions used to Determine Defined Benefit Obligations

The principal actuarial assumptions that apply for the year ended December 31 are as follows:


Actuarial assumptions used to determine defined benefit obligations at year-end	2019	2018
Demographic actuarial assumptions
Mortality	UK mortality table 1)		UK mortality table	2)

Financial actuarial assumptions
Discount rate	2.08%		2.94	%
Price inflation	3.08%		3.32	%

1	Club Vita tables based on analysis of Scheme membership CMI 2017 1.5%/1.25% p.a. (males/females)

2	Club Vita tables based on analysis of Scheme membership CMI 2017 1.5%/1.25% p.a. (males/females)

year-end:


	Estimated approximate effects on the defined benefit obligation
	2019			2018
Demographic actuarial assumptions
10% increase in mortality rates		(48	)		(34	)
10% decrease in mortality rates		54			38

Financial actuarial assumptions
100 basis points increase in discount rate		(306	)		(235	)
100 basis points decrease in discount rate		414			313
100 basis points increase in price inflation		130			119
100 basis points decrease in price inflation		(281	)		(192	)

Target Allocation of Plan Assets for Retirement Benefit Plans for the Next Annual Period


		Target allocation of plan assets for retirement benefit plans for the next annual period is:
Equity instruments		32%
Debt instruments		68%

Aegon United States of America [member]

Statement [LineItems]

Summary of Actuarial Assumptions used to Determine Defined Benefit Obligations


	Target allocation of plan assets for retirement benefit plans for the next annual period is:
Equity instruments		19-28	%
Debt instruments		47-58	%
Other		20-28	%

Aegon Nederland N.V. [member]

Statement [LineItems]

Summary of Actuarial Assumptions used to Determine Defined Benefit Obligations

The principal actuarial assumptions that apply for the year-ended December 31 are as follows:


Actuarial assumptions used to determine defined benefit obligations at year-end	2019		2018
Demographic actuarial assumptions
Mortality		NL mortality table 1)		NL mortality table 1)

Financial actuarial assumptions
Discount rate		0.94%		1.74%
Salary increase rate 2)		Curve 2019		Curve 2018
Indexation 3)		59.2 % of Curve 2019		57.75% of Curve 2018

1	Based on prospective mortality table of the Dutch Actuarial Society with minor methodology adjustments.

2	Based on Dutch Consumer Price Index.

3	Based on Dutch Consumer Price Index.

The principal actuarial assumptions have an effect on the amounts reported for the defined benefit obligation. A change as indicated in the table below in the principal actuarial assumptions of the retirement benefit plan would have the following effects per

year-end:


	Estimated approximate effects on the defined benefit obligation
	2019			2018
Demographic actuarial assumptions
10% increase in mortality rates		(100	)		(81	)
10% decrease in mortality rates		112			90

Financial actuarial assumptions
100 basis points increase in discount rate		(645	)		(534	)
100 basis points decrease in discount rate		893			733
100 basis points increase in salary increase rate		1			18
100 basis points decrease in salary increase rate		-			(18	)
25 basis points increase in indexation		194			167
25 basis points decrease in indexation		(177	)		(152	)