Pensions

12 Months Ended

Dec. 31, 2017

Note 13 - Pensions

The Company is required to have an occupational pension scheme in accordance with the Norwegian law on required occupational pension (“lov om obligatorisk tjenestepensjon”) for the employees in DHT Management AS. The company's pension scheme satisfies the requirements of this law and comprises a closed defined benefit scheme. At the end of the year, there were 15 participants in the benefit plan.

F-44

Defined benefit pension

The Company established a defined benefit plan for qualifying employees in 2010. Under the plan, the employees, from the age 67, are entitled to 70% of the base salary at retirement date. Parts of the pension are covered by payments from the National Insurance Scheme in Norway. The defined benefit plan is insured through an insurance company.

(Dollars in thousands)
Calculation of this year's pension costs:	2017		2016		2015
Current service cost		329		344		289
Financial costs		6		6		6
Pension costs for the year		335		350		296

The amounts recognised in the statement of financial position at the reporting date are as follows:

	2017	2016	2015
Present value of the defined benefit obligation	1,481	1,128	949
Fair value of plan assets	1,266	963	801
Net pension obligation	215	165	148
Remeasurement loss	211	60	48
Net balance sheet recorded pension liability December 31	425	225	196

	2017		2016		2015
Change in gross pension obligation:
Gross obligation January 1	1,111		945		706
Current service cost	325		360		285
Interest charge on pension liabilities	31		27		24
Past service cost - curtailment/plan amendment	-		(19	)	-
Settlement (gain)	-		(128	)	-
Social security expenses	(44	)	(48	)	(43	)
Remeasurements loss/(gain)	227		(18	)	(27	)
Exchange rate differences	58		(8	)	(20	)
Gross pension obligation December 31	1,708		1,111		925

	2017	2016		2015
Change in gross pension assets:
Fair value plan asset January 1	886	744		511
Interest income	20	17		24
Settlement	-	(128	)	-
Employer contribution	313	338		303
Remeasurements (loss)/gain	16	(79	)	(79	)
Exchange rate differences	47	(7	)	(30	)
Fair value plan assets December 31	1,282	886		728

The Company expects to contribute $305 thousand to its defined benefit pension plan in 2018.

Assumptions	2017			2016			2015
Discount rate		2.40	%		2.60	%		2.70	%
Yield on pension assets		2.40	%		2.60	%		2.70	%
Wage growth		2.50	%		2.50	%		2.50	%
G regulation*		2.25	%		2.25	%		2.25	%
Pension adjustment		0.50	%		0.00	%		0.00	%
Average remaining service period		18			19			18

* Increase of social security base amount ("G") as per Norwegian regulations.

F-45