XML 157 R65.htm IDEA: XBRL DOCUMENT v3.24.1
PENSIONS (Tables)
 12 Months Ended
Dec. 31, 2023
Retirement Benefits [Abstract]  
Components of net periodic benefit cost
The components of net periodic benefit costs are as follows:
Year ended December 31,
(in thousands of $)202320222021
Service cost(33)(75)(120)
Interest cost(1,622)(1,087)(879)
Expected return on plan assets427 254 214 
Recognized actuarial loss(307)(774)(1,131)
Net periodic benefit cost(1,535)(1,682)(1,916)
Reconciliation of benefit obligation
The change in projected benefit obligation and plan assets and reconciliation of funded status for the years ended December 31, 2023 and 2022 are as follows:
(in thousands of $)20232022
Reconciliation of benefit obligation: 
Benefit obligation at January 134,078 47,215 
Service cost33 75 
Interest cost1,622 1,087 
Actuarial loss/(gain) (1)
246 (10,106)
Foreign currency exchange rate changes383 (1,227)
Benefit payments(2,929)(2,966)
Projected benefit obligation at December 31
33,433 34,078 
(1) Actuarial gain is sensitive to changes in key actuarial assumptions specifically discount rates, mortality rates and assumed future salary increases.
Reconciliation of fair value of plan assets
The accumulated benefit obligation at December 31, 2023 and 2022 was $33.2 million and $33.9 million, respectively.

(in thousands of $)20232022
Reconciliation of fair value of plan assets: 
Fair value of plan assets at January 19,809 15,858 
Actual return on plan assets433 (4,392)
Employer contributions2,175 2,900 
Foreign currency exchange rate changes474 (1,591)
Benefit payments(2,929)(2,966)
Fair value of plan assets at December 319,962 9,809 
Reconciliation of funded status
Employer contributions and benefits paid under the pension plans include $2.2 million and $2.9 million paid from employer assets for the years ended December 31, 2023 and 2022, respectively.

Our defined benefit pension plan is comprised of two schemes as follows:
 December 31, 2023
December 31, 2022
 
(in thousands of $)
UK SchemeMarine SchemeTotalUK SchemeMarine SchemeTotal
Fair value of benefit obligation(7,597)(25,836)(33,433)(7,073)(27,005)(34,078)
Fair value of plan assets9,331 631 9,962 8,801 1,008 9,809 
Funded (unfunded) status at end of year1,734 (25,205)(23,471)1,728 (25,997)(24,269)
Asset allocation of retirement schemes
The fair value of our plan assets, by category, as of December 31, 2023 and 2022 are as follows:
(in thousands of $)20232022
Equity securities9,331 8,801 
Cash631 1,008 
 9,962 9,809 

The asset allocation for our Marine scheme at December 31, 2023 and 2022, by asset category are as follows:
Marine scheme2023 (%)2022 (%)
Cash100 100 
Total100 100 

The asset allocation for our UK scheme at December 31, 2023 and 2022, by asset category are as follows:
UK scheme2023 (%)2022 (%)
Equity99 98 
Cash
1 2 
Total100 100 
Expected contributions to pension schemes
We are expected to make the following contributions to the schemes during the year ended December 31, 2023, as follows:
(in thousands of $)UK schemeMarine scheme
Employer contributions— 2,175 
Expected pension disbursements
We are expected to make the following pension disbursements as follows:
Year ending December 31,
UK schemeMarine scheme
(in thousands of $)
2024410 2,600 
2025510 2,500 
2026410 2,400 
2027420 2,300 
2028420 2,200 
2029 - 20332,400 9,000 
Weighted average assumptions used
The weighted average assumptions used to determine the benefit obligation for our defined benefit pension plans for the years ended December 31 are as follows:
 20232022
Discount rate4.63 %4.94 %
Rate of compensation increase2.47 %2.61 %

The weighted average assumptions used to determine the net periodic benefit cost for our defined benefit pension plans for the years ended December 31 are as follows:
 20232022
Discount rate4.64 %4.93 %
Expected return on plan assets4.31 %1.81 %
Rate of compensation increase2.54 %2.49 %