General
Total provisions (assets) for pension obligations were as follows.


December 31,
SEK in millions

20072006
Present value of pension obligations

20,80721,495
Fair value of plan assets

-19,265-18,977
Pension obligations less plan assets

1,5422,518
Unrecognized past service cost

-211
Unrecognized actuarial gains (+)/losses (-)

-1,311-2,611
Net provisions (+)/assets (-) for pension obligations

229-82
As of December 31, 2007 and 2006, recognized pension obligation assets in the Finnish plans were SEK 187 million and SEK 121 million, respectively, while the plans in other countries had provisions for pension obligations totaling SEK 416 million and SEK 39 million, respectively.
In 2007, actuarial modifications reflecting an extended average life expectancy in Sweden were implemented, increasing the present value of pension obligations by approximately SEK 564 million. For an extended analysis, see section "Pension obligation risk" in Note 28 "Financial Risk Management."
Total pension expenses were distributed as follows.


January-December
SEK in millions

20072006
Current service cost

461528
Interest cost

814746
Expected return on assets

-865-798
Curtailment of pension obligations

--11
Amortization of past service cost

-13-13
Amortization of actuarial
gains (-)/losses (+)

83146
Pension expenses, defined benefit pension plans

480598
Termination benefits (excl. premiums and pension-related social charges)

182496
Pension premiums, defined benefit/defined contribution pension plans and
pay-as-you-go systems

490563
Pension-related social charges and taxes, other pension expenses

309409
Less termination benefits (incl. premiums and pension-related social charges) reclassified as restructuring charges

-240-658
Total pension expenses

1,2211,408
of which pension premiums paid to the ITP pension plan

105167




Actuarial calculation assumptions
The actuarial calculation of pension obligations and pension expenses is based on the following principal assumptions, each presented as a weighted average for the different pension plans.


December 31,
Percentages, except remaining working life

20072006
Discount rate

4.63.9
Expected rate of compensation increase

3.23.2
Employee turnover rate

2.92.9
Average expected remaining working life, years

14.414.5
Increase in income base amount (only Swedish Group units)

2.82.8
Annual adjustments to pensions

2.12.0
Expected return on plan assets

5.14.5




Specifications to pension obligations and pension expenses
Changes in present value of pension obligations, fair value of plan assets, net provisions or assets in the balance sheet and actuarial net gains or losses for the defined benefit pension plans were as follows.


December 31,
SEK in millions, except percentages

20072006
Present value of pension obligations



Opening balance

21,49522,036
Current service cost

461528
Interest cost

814746
Benefits paid

-1,143-1,107
Benefits paid, early retirement

-48-307
Termination benefits

182496
Reclassifications

435120
Operations acquired/divested

-25-
Curtailment of pension obligations

--11
Actuarial gains (-)/losses (+)

-1,489-882
Exchange rate differences

125-124
Closing balance, present value of pension obligations

20,80721,495
Experience adjustments arising on plan liabilities (%)

0.6-0.3
Effects of changes in actuarial assumptions (%)

6.54.4
Fair value of plan assets



Opening balance

18,97718,480
Expected return on plan assets

865798
Contribution to pension funds

573443
Payment from pension funds

-982-1,030
Operations acquired/divested

-24-
Actuarial gains (+)/losses (-)

-272384
Exchange rate differences

128-98
Closing balance, plan assets

19,26518,977
Experience adjustments arising on plan assets (%)

-1.02.0
Return on plan assets



Expected return on plan assets

865798
Actuarial gains (+)/losses (-)

-272384
Actual return on plan assets

5931,182
Actual return on plan assets (%)

3.16.4
Net provisions/assets for pension obligations



Opening balance

-82-437
Pension expenses, defined benefit pension plans

480598
Benefits paid

-1,143-1,107
Benefits paid, early retirement

-48-307
Contribution to pension funds

-573-443
Payment from pension funds

9821,030
Termination benefits

182496
Reclassifications

435120
Exchange rate differences

-4-32
Closing balance, net provisions (+)/assets (-) for pension obligations

229-82
Actuarial gains/losses



Opening balance, actuarial gains (+)/losses (-)

-2,611-4,019
Actuarial gains (-)/losses (+) to be recognized

83146
Actuarial gains (+)/losses (-), pension obligations

1,489882
Actuarial gains (+)/losses (-), plan assets

-272384
Exchange rate differences

0-4
Closing balance, actuarial gains (+)/losses (-)

-1,311-2,611
Operations divested



Decrease in pension obligations

-25-
Decrease i plan assets

24-
Net position, operations divested

-1-
Plan-asset allocation
As of the balance sheet date, plan assets were allocated as follows.
December 31, 2007December 31, 2006
Asset categorySEK in millionsPercentSEK in millionsPercent
Fixed income instruments, liquidity12,26963.711,25059.3
Shares and other investments6,99636.37,72740.7
Total19,265100.018,977100.0
of which shares in TeliaSonera AB880.5790.4




Future contributions
As of December 31, 2007, the fair value of plan assets exceeded the present value of the parent company's pension obligations and is anticipated to continue doing so. Hence, TeliaSonera AB will not make any contribution to the pension fund in 2008. For other companies in Sweden, the total pension liabilities are secured also by pension credit insurance. This means that, should the net provision for pension obligations increase, each company can choose if and when to contribute to the pension fund or otherwise to recognize a provision in the balance sheet. To pension funds outside Sweden, TeliaSonera expects to contribute SEK 161 million in 2008.