Pensions

12 Months Ended

Dec. 31, 2018

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.

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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.

Calculation of this year's pension costs:

	2018		2017		2016
(Dollars in thousands)
Current service cost		403		329		344
Financial costs		10		6		6
Pension costs for the year		413		335		350

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

	2018		2017		2016
Present value of the defined benefit obligation		1,971		1,481		1,128
Fair value of plan assets		1,614		1,266		963
Net pension obligation		357		215		165
Remeasurement loss		182		211		60
Net balance sheet recorded pension liability December 31		539		425		225

	2018			2017			2016
Change in gross pension obligation:
Gross obligation January 1		1,708			1,111			945
Current service cost		398			325			360
Interest charge on pension liabilities		42			31			27
Past service cost - curtailment/plan amendment		-			-			(19	)
Settlement (gain)		-			-			(128	)
Social security expenses		(57	)		(44	)		(48	)
Remeasurements loss/(gain)		119			227			(18	)
Exchange rate differences		(119	)		58			(8	)
Gross pension obligation December 31		2,090			1,708			1,111

	2018			2017		2016
Change in gross pension assets:
Fair value plan asset January 1		1,282			886		744
Interest income		27			20		17
Settlement		-			-		(128	)
Employer contribution		404			313		338
Remeasurements (loss)/gain		(63	)		16		(79	)
Exchange rate differences		(99	)		47		(7	)
Fair value plan assets December 31		1,551			1,282		886

The Company expects to contribute $345 thousand to its defined benefit pension plan in 2019.

Assumptions	2018			2017			2016
Discount rate		2.60	%		2.40	%		2.60	%
Yield on pension assets		2.60	%		2.40	%		2.60	%
Wage growth		2.75	%		2.50	%		2.50	%
G regulation*		2.50	%		2.25	%		2.25	%
Pension adjustment		0.80	%		0.50	%		0.00	%
Average remaining service period		18			18			19

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

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