The Group has a service pension plan that covers all the Group's employees in Norway. The scheme is insured through Vital - DnB NOR. Parts of pensions are covered by payments from the National Insurance Scheme. Such payments are calculated using the National Insurance Scheme's basic amount (G), stipulated annually by the Norwegian parliament. Pension benefits depend on the individual employee's number of years of service and salary upon retirement. Pension costs are distributed over the employee's vested period. The scheme provides 65 per cent of salary until the age of 77, then the service pension level is reduced to 50 per cent.

Members of corporate management have early retirement agreements from age 60. The benefits give them 90 per cent of their salary upon retirement at age 60, diminishing by 10 per cent per year to 60 per cent of their salary from age 63 to 67. As from 2006, new rules apply to severance pay for new employees in such
positions. The new rules imply freedom from the obligation to work from age 62, that the contribution time has increased from 10 to 15 year and that the benefit has been reduced to 65 per cent.

It has been decided that as from 1 January 2008, all new employees and employees under the age of 52 will be transferred to deposit-based pension schemes. This has led to a net reduction in pension liabilities. The one-off effect has been recognised as settlement of the pension plan in 2007. Employees aged 52 and older will remain in the defined benefit plan.

The calculation of future pension obligations is based on the following assumptions:

	31 Dec 07	31 Dec 06
Discount rate	5.0%	4.5%
Expected rate of return	6.0%	5.5%
Wage adjustments	4.5%	4.0%
Pension base level (G) adjustment	4.5%	4.0%
Pension adjustment	2.0%	1.5%
Turnover	4.5%	4.0%

The year's pension costs were calculated as follows:

Amounts in MNOK	2007	2006
Service cost	6	7
Interest cost on pension liabilities	4	4
Estimated return on pension plan assets	(1)	(2)
Settlement of pension plan	(5)	-
Amortisation, estimated deviation	1	1
Accrued social security expenses	1	1
Total net pension expenses	6	11

Amounts in MNOK	2007	2006
Total gross pension liabilities	(122)	(121)
Gross pension plan assets	15	17
Net pension liabilities	(107)	(104)
Unrecognised plan changes	3	3
Social security	(14)	(13)
Total net pension expenses	(118)	(114)

Pension expenses for the year are estimated based on the financial and actuarial assumptions that apply at the beginning of the year. Gross pension liabilities are based on the financial and actuarial assumptions made at year end.