The Social Workers', Social Pedagogues' and Office Staff Pension Fund

Transkript

1 Annual Report 2016 The Social Workers', Social Pedagogues' and Office Staff Pension Fund Approved at the Annual General Meeting of the Pension Fund on 26 April Chairman of the Meeting Tubory Boulevcird 3, DK-2yOU Hellemp Central Business Reg. No

2 The Social Workers', Social Pedagogues' and Office Staff Pension Fund Contents Management Review 2 Management Statement 10 The indepenrtenl auditor's report 11 Income Statement 13 Balance Sheet 14 Capital 16 Notes 17 Tuborg Boulevard 3, DK-2900 Hellerup - Central Business Reg. No. 71 9/ 43 16

3 2 Annual Report 2016 Management Review The Pension Fund carries out pension fund activities. The Pension Fund accepts social workers and social pedagogues, as well as residential Institution assistants, educator assistants, lead housekeepers, workshop assistants, practical care providers, sign language interpreters and office staff, as members; they are enti tled and obliged to membership of the Pension Fund through their collective labour market agreement or contract of employment. Furthermore, as from 2016, persons who do not have an employer pension scheme, but are members of trade union organisations attached to the Pension Fund, are also admitted as members. The Pension Fund has organised Its activities in the form of investment activities in affiliated companies. However, the results obtained by the Pension Fund Group as a whole decide a member's pension entitle ment. The key figures in this report arc thus given at Group level, unless otherwise specified. Profit for the year The Group's profit in 2016 amounted to DKK 354.S mill. The Board of Directors proposes to carry the profit forward to next year. Members' contributions and pension payments are Increasing, which had also been expected. The Pension Fund continues to grow, since members' contributions are 1.49 times higher than pension payments. The total return before the pension return tax on the Pension Fund's assets was 8.3%. The profit for the year is deemed to be satisfactory and the Pension Fund remains well-consolidated. The year under review The economy The Pension Fund expected 2016 to be characterised by moderately increasing growth In both the US and Europe. Interest rates were expected to go up because of increasing energy prices, thus leading to higher inflation was charcterised by two major events. In June, the Brits decided that the UK will leave the EU follow ing negotiations of terms; in November, Donald Trump was elected President of the US. Until now, none of these events have had noticeable financial consequences and In the US, contrary to expectations, stock prices went up after Trump was elected. Apart from these factors, the year under review presented moderate growth and falling unemployment In both the US and Europe. Inflation went up, primarily as a result of increasing raw material prices. Increas ing raw material prices also contributed tox^/ards stabilising the economic development of emerging market countries. Both the Fed in the US and the Furopean Central Bank continued their lenient monetary policy. In 2016, short-term interest rates were at around zero. At the end of Z016, however, the Fed increased its interest rates and the European Central Bank is reducing its purchase of bonds from March Both of those developments arc to be seen In the light of increasing inflation and moderate growth. The global stock markets rose by 8.7% in 2016, All in all, risk-prone assets generated good returns In 201.6, while Interest developments remained largely unchanged. -Account //J teres rate The Pension Fund's account Interest rate in 2016 was set at 4.8% before tax. The account interest rate has been increased to b.0% before tax in 2017 and is expected to he minimum 5% in the coming five years. Private savings In 2016, it became possible for members to place private savings with the Pension Fund. Such savings are a flexible supplement to members' employer pension schemes and offer payment-guaranteed savings in the form of a lump-sum retirement amount, an instalment pension or a life-long retirement pension. In August 2016, some of the members who had private savings with PKA+ Pension moved these savings to the Pension Fund. The Social Workers', Social Pedagogues' and Officc Staff Pension Fund

4 Annual Report In 2016, it also became passible for persons who have no employer pension schcme, but are members of trade unions affiliated with the Pension Fund to establish a pension scheme with the Pension Fund. Pension Fund Group The enterprises affiliated with (100% owned by) the Pension Fund as at 31 December 2016 appear from the Group chart. The Social Workers, Social Pedagogues' and Office Staff Pension Fund The Social Workers', Social Pedagogues' and Office Staff Properly Company pic PKA Social Workers, Social Pedagogues and Office Staff Anholt Havvindmollepark K/S PKA - Social Workers and Social Pedagogues OWP BUTEND1EK K/S PKA - Office Staff OWP BUTENDIEK K/S PKA - Social Workers, Social Pedagogues and Office Staff Gode Wind II K/S PKA - Social Workers, So cial Pedagogues and Office Staff OWP BUTENDIEK Komplementar ApS PKA - Social Workers, Social Pedagogues and Office Staff GP ApS The Pension Fund's erty company, limited company This company has the purpose of owning and running real property so as to obtain a long-term return on the invested capital. The companies' result for 2016 was a profit of DKK mill., which amount was influenced by apprecia tion of the value of the properties concerned. The Social Workers', Social Pedagogues' and Office Staff property company pic participates In partnerships with other PKA-affHated property companies. These partnerships do not publish Independent annual re ports, as spccificd in the Danish Financial Statements Act. The partnerships arc integrated on a pro rata basis In the financial statements of the partners. Anholt Offshore Wind Farm The company's activity Is ownership of 4,9% of Anholt Havvlndmellepark US. The company's result for 2016 was a profit of DKK 61.7 mill., which is in line with expectations. OWP Butendiek The activity in the two OWP Butendiek K/S companies is ownership of a total of 6.4% of a German offshore wind farm, OWP Butendiek GmbH 6 Co. KG, These companies arc expected to be sold before the end of the first quarter of 201"/. A sales agreement has been signed and awaits the approval of the competition authorities. The value of the companies has been recognised at the expected sales price. The companies' result for 2016 was a profit of DKK lbb.7 mill. Gode Wind II The company's activity is ownership of 13./% of Gode Wind II Joint lloldco P/S, which together with other investors owns 50% of OpCo German OHG, a German offshore wind farm. The Social Workei-s', Social Pedcigugues' and Office Staff Pension Funcl

5 4 Annual Report 2016 The company's result for 2016 was a profit of DKK 71.7 mill. Establishment of the wind farm was complet ed in PKA - Social Workers, Social Pedagogues and Office Stuff OWP Butendiek Komplenientar ApS In connection with the expected sale of the two OWP Butendiek K/S companies, the former PKA - Social Workers, Social Pedagogues and Office Staff GP ApS was renamed PKA Social Workers, Social Peda gogues and Office Staff OWP Butendiek Komplementar ApS, functioning only as the general partner (kornplementar) for the two limited partnerships OWP Butentiek K/S. The company forms part of the expected transaction. The result for 2016 was a profit of DKK 0.1 mill. PKA - Social Workers, Social Pedagogues and Office Staff GP ApS This company was established in connection with the segregation of the two OWP Butendiek K/S compa nies and functions as the general partner for the Pension Kind's other investments via limited partner ships In the offshore wind farms. The result for 2016 was DKK 0.0 mill. Investments and social responsibility The Pension Fund's guidelines for responsible investments are in line with the principles of the UN Global Compact. As an addition to the UN Global Compact, the Pension Fund has adopted a policy of not investing in controversial weapons, coalmines or tobacco. The Board's report to the General Meeting explains the development of the work on these guidelines and active ownership. The report is available on the Pension Fund's website. Active ownership is exercised by ongoing dialogue with the companies in which investments have been made and by ensuring that they comply with the Pension Fund's guidelines. If a company docs not live Up to the guidelines, the Pension Fund enters into a constructive dialogue with the company to bring such infringement to an end. If the company continued to infringe the guidelines and there are no prospects of lasting improvements on the part of the company, the company concerned will be excluded from the Pension Fund's investment uni verse. The Pension Fund publishes an updated list of excluded companies on its website. The Pension Fund's active ownership Is pursued in cooperation with an international screening and com mitment partner, which gives the Pension Fund extra clout when enforcing its guidelines. Further to the Pension Fund's guidelines, the partner also works to promote best practice through long-term dialogue with the companies in which the Pension Fund has Invested. The Pension Fund's website contains more detailed statements regarding compliance with the guidelines and regarding active ownership. In 2015, the UN adopted seventeen sustainability goals intended to fight poverty and ensure a sustainable development towards The Pension Fund focuses on ensuring that its investments and active owner ship contribute in particular to fulfilling six of the goals: clean drinking water (goal 6), sustainable energy (goal 7), decent jobs and economic growth (goal 8), industry, innovation and infrastructure (goal 9), sus tainable cities and communities (goal 11), as well as climate action (goal 13). The Pension Fund carries out ongoing review to determine which sustainability goals should be supported by the Pension Fund's invest ments. In 2016, the Pension Fund together with the other pension funds in the PKA cooperation invested approx. DKK 3 billion in Burbo Bank Extension, a British offshore wind farm project designed to generate electricity for over 230,000 households. In addition, the pension funds are investing DKK 1.3 billion in a blomass power plant, which fires sustainable blomass. This power plant will generate electricity for approx. 600,000 households. On the basis of financial and climate-related considerations, the Pension Fund took its first step in 2015 towards reducing its exposure i C02 intensive companies. These are typically mining, utility and energy companies. The Pension Fund enters into a dialogue with these companies with the purpose of making them reduce their coal business and convert to more climate-friendly sources of energy. The companies have to submit a business strategy, which phases out their coal activities, while taking account of regula tions in the energy sector and the increased political focus on the environment. If a company is not able to do so, the Pension Fund will sell its shares in the company and exclude it. So far, 40 companies have been excluded by the Pension Fund. The Pension Fund's ambition is not to sell its shares, but to influence the companies to make them go in a sustainable direction. Active ownership has proven its worth and moved the companies concerned in a sustainable direction. Until now, ten companies have prepared strategies to reduce their coal activities, so the Pension Fund has kepi, its shares in these companies. The Social Workers', Social Poctegogues' and Otiice Staff Pension Fund

6 Annual Report In 2016, the strategy from the coal sector was applied also to the oil sector, where the Pension Fund ex cluded two companies; more than 50 per ccnt of the business of these two companies consists of the ex traction of oil sand. The Pension Fund expects to cxclude additional companies in the oil sector in In 2016, the Pension Fund launched a new climate strategy for its Danish property portfolio, based on fi nancial and dim ate-related considerations. The strategy is intended to contribute towards green conver sion and protect the value of the property as well as the return generated for the Pension Fund's members Up to 2020, the Pension Fund will reduce its average C02 emission by 40 per cent per square metre, This means that the property portfolio will move from an average energy mark C to an energy mark B in 2020, Furthermore, the Pension Fund received a sustainability certificate for two properties in One office property took part in a pilot trial under the DGBN1 scheme, which intends to improve the sustainability of existing properties. The property received a gold certificate, which is the second-highest achievable mark. At the same time, the Health House in the town of Vcjlc received a gold certificate under the LEED schemed In addition, the Pension Fund built Denmark's first rental properties with the so-called "swan" label, which is the Nordic Eco-label mark. This means that all materials must live up to strict require ments concerning substances which could be hazardous to the environment or to health. The property has low energy consumption, a healthy indoor climate and a focus on sustainability throughout the ser vice life of the building - from erection and operation to the recycling of materials. The Pension Fund will continue its work to ensure that new properties are either certified at the high end of the scale or receive a "swan" label. In 2016, the Pension Fund together with the other pension funds in the PKA cooperation invested DKK 200 mill, in a new Danish farm fund, which is intended to improve production, distribution and sale of food items in Asia, Africa and Latin America, The fund invests in projects In which the technology and knowledge from Danish farm and food enterprises can enhance the efficiency and productivity of food items in developing countries to meet the needs of growing populations. The fund contributes towards creating Jobs and growth in developing countries, and because of the Pension Fund's activc ownership, work is carried out on an ongoing basis to ensure that job creation occurs on decent working conditions and at decent wages. Return The total return in 2016 was 8,3%, corresponding to DKK 4,438.6 mill. All asset classes generated a positive return in Shares, infrastructure and mortgage bonds gener ated double-digit returns, while the return on properties, investment grade bonds and the absolute return were lower, but still very satisfactory. Cooperation on investments and cash flow The Pension Fund's assets are managed by PKA A/S and, based on an agreement, the Pension Fund coop erates with other pension funds administered by PKA A/S on effective and rational management of its in vestments and cash flow, so as to obtain the highest possible return and the lowest possible costs. Derivative financial instruments The Pension Fund makes wide use of dchvatc financial instruments for investment and hedging purposes. Administration The Pension Fund and the affiliated companies are administered by PKA A/S. PKA A/S has outsourced some of its administrative tasks to Forca A/S and others. The Management and significant fixed-salary risk-takers are partially employed and paid by the Pension Fund, The Appointed Actuary is employed, but not paid, by the Pension Fund, Progress report on compliance with the goal regarding the underrepresented gender at man agement level The Financial Services Act requires that financial companies must set a target for gender representation on the board of directors and prepare a policy on equal representation in the management if one gender 1 German suslainabilily ccrlificaiion scheme adapted to Danish conditions; an asscssmeni is made of the environmental, financial social and functional C iiaiities of a property, etc. 2 American susiainabilily certification scheme adapted to Danish conditions; an assessment is made of the eiiviionmental. financial social and functional qualities of a properly, clc. The Social Workers', Social Podaqogiifi^' and Office Staff Pension Fund

7 0 Annual Report 2016 Is underrepresented on the Board. Such undcrrcpresentation exists If either gender has less than 40% of the Board members, The rules of setting a target for gender representation on the board of directors are based on the board members clected by the general meeting; however, In the Pension Fund, the majority of board members are appointed by social partners concluding labour market agreements. That is why it will not be correct to adopt a target for the board members elected by the general meeting; consecjuently, the board has adopt ed a target for the gender composition of the board of directors as a whole. The board has dccided that the target for men on the board of directors Is to be 25%, while the target for women on the board is to be 40%. At the end of the year under review, the split on the board of directors was 50% men and 50% women on the board. The targets have thus been met. No policy has been adopted regarding equal representation In the management layers below the executive management of the Pension Fund. The Pension Fund is fully administered by PKA A/5, In 2016, PKA A/S had a gender distribution in the management layers below the executive management of 57% men and 43% women; against this background, no policy for equal gender representation In the other management layers of PKA A/S has been prepared. Audit Committee In accordance with legislation, the Pension Fund must establish an Audit Committee. The chairman must be independent and at least one member must have qualifications in accounting or auditing. The chairman of the Audit Committee is Ulrlk Nftdgaard, who meets the requirements both for Independ ence and for qualifications in accounting or auditing. The other members of the Audit Committee are Benny Andersen and Susanne Kure. Risks and solvency associated with the Pension Fund's business model Seen in a risk perspective, the Pension Fund's business model is simple, since it rests on a labourmarket-agreement-based, collective, solidarity-based labour market pension scheme, in which outsourc ing is used to a considerable extent. The most significant risks are market risks, insurance risks and out sourcing. Market risks The Pension Fund offers an average interest rate product. New members arc admitted at a base interest rate of 0 per cent, just as the Pension Fund still has a number of members with interest rates varying from 1.75 to 4.25 per cent. This involves interest risk exposure, which is hedged on an ongoing basis. The Pension Fund v/ishes to deliver robust pensions to its members. This is ensured through a long-term investment strategy, whose aim is to achieve high, stable returns in a responsible way; as a minimum, these investments must be able to meet the return requirement from the expected pensions. Long-term low returns on investment assets or major financial losses constitute a risk when it comes to delivering robust pensions. This exposure is the Pension Fund's market risk. This risk is mitigated by spreading in vestments to cover a wide range of different asset classes. Investments are made collectively for members. Any losses on investments must also be covcred collec tively; however, the Pension Fund's share of bonus potentials ensures that any losses on the financial markets are not charged to members' deposits in individual years, but that Instead members receive the account interest announced at any given time on their deposits. Risk-taking is a precondition for achieving an adequate return that will guarantee robust pensions. In this connection, the Board of Directors has a major task in deciding on the Pension Fund's risk appetite in the form of a chosen investment strategy. The Pension Fund's risk appetite is decided on the basis of two goals. The Pension Fund protects the members' pensions (PBG) and the Pension Fund complies with all applicable solvency rules. In its risk management policy, the Board of Directors decides the safety levels for the PBG limits which give the risk-related framework for the Pension Fund in relation to the expected pensions. Furthermore, In special cases, the solvency cover may provide the framework for the risk-taking of the Pension Fund. The Pension Fund has a capital plan and an emergency plan based on the risk management model (PBG) and the solvency capital requirement (SCR). In the capital plan, the financial situation in the Pension Fund's strategic planning period is deemed to bo reassuring, The Social Workers', Social Pedagogues' and Offico Staff Pension Fund

8 Annual Report Insurance risks The Pension Fund provides life-long pensions, so in risk terms the Pension Fund is exposed to changes in life expectancy among its members. The Pension Fund is a solidarity-based scheme with disablement covcr without any required health infor mation upon admission, as long as the member is in one of the job groups that are comprised. In risk terms, the Pension Fund Is exposed to the development in the number of anticipatory pension recipients among its members. The Pension Fund monitors developments in Its Insurance risks closely and makes provisions in accord ance with the life expectancy benchmark laid down by the Danish FSA. Outsourcing The Pension Fund uses outsourcing to a considerable extent. Direct outsourcing goes to PKA A/S, which in turn has outsourced much of operations on to Forca A/S. The administration of real property invest ments has been outsourced to DtAS A/S. Risk is managed In the form of inspections and service delivery agreements. Solvency II The Solvency II rules came into force on 1 January 2016; In this connection, new accounting rules have been issued, which ensure a high degree of consistency between calculations for solvency purposes and calculations for accounting purposes. One of the effects of the transition to the new accounting rules is thai member behaviour may be included In superannuation provisions and that a discounting graph calculated by the European supervisory authority EIOPA is to be used. Relating to this, the Pension Fund has applied for permission to use an addendum to the graph, the so-called Volatility Adjustment addendum and has received such permission. Capital Equity increased in 20:1.6 by DKK mill, to DKK 5,806 mill. The capital base is now DKK 6,505.1 mill, against DKK 6,024.3 mill, in The SCR solvency requirement has been calculated using the standard model. As at 1 January 2016, SCR amounted to DKK 1,459.2 mill., while the amount at the end of 2016 was DKK 1,500.5 mill. New official accounting order The Danish FSA has issued a new accounting order applicable from The changes introduced will only influence the Pension Fund to a limited extent. Bonus policy The Pension Fund bonus policy is framework-based and seeks to allow a return that will ensure the highest possible maintenance of the purchasing power of the pensions. This does not mean that a decision has been made to adjust pensions each year to protect purchasing power. The intention is to protect pension purchasing power in the long run. The bonus policy is also based on the assumption that maintenance of purchasing power requires a rea sonable level of the pension to be adjusted. Pensions primarily based on a high level of interest rates and/or assumptions of shorter life expectancy will not necessarily require protection of purchasing power, given the present interest conditions and current assumptions on life expectancy. The Pension Fund equity is owned by the members. The principles for distribution of the year's profit be tween pension provisions and equity are thus not nearly as significani in a pension fund as in a life assur ance enterprise. The full result obtained by a pension fund always accrues to Its members. Superannuation provisions Superannuation provisions increased In 2016 by DKK 4,651.6 mill, to DKK 51,626.5 mill. Uncertainty of recognition and measurement When the Annual Report is prepared, a number of estimates and assessments of future aspects are made; these have an Influence on the accounting value of assets and commitments. The most significant areas concern pension obligations and the valuation of unlisted, alternative Invest ments and properties. The Social Workers', Social Pedagogues' and Office Statt Pension Fund

9 8 Annual Report 2016 Management finds that the assumptions made are responsible, but associated with uncertainty. Sensitivi ty information regarding a number of assumptions made can be seen in note 18. Expectations regarding the future In both the US and Europe, growth and inflation are expected to grow moderately, while unemployment will decline. Rising inflation will result in minor tightening initiatives In monetary policy in both the US and Europe. Politically, however, a number of events may give rise to unrest on the financial markets. Firstly, it is still uncertain what the policy of the new American administration is going to be. This is true in regard to foreign policy, trade policy and economic policy alike. If, for example, trade sanctions against Mexico and China are implemented, global growth will decline. A major financial policy expansion will prob ably lead to increased inflation, resulting in additional interest rate increases in addition to those already expected in the American bond markets. The biggest impact will be on short-term interest rates, while long-term interest rates will be less Impacted. Secondly, elections will be held in France, the Netherlands and Germany. At first, the election In France in the spring attracts most attention, focusing on the possibility of the right-wing party Front National winning the presidential election. In all the mentioned countries, however, more nationalistic parties may increase in size; in addition to Brexit, this may challenge the coherence of the EU. The Pension Fund is robust and wcll-cquippcd when it comes to tackling these challenges. Events after the Balance Sheet date No events after the Balance Sheet date have any significant influence on the financial standing of the Pen sion Fund or the Group. The Social Workers', Social Pedagogues' and Ottiof Staff Pension Fund

10 Annual Report 2016 y Other management/board positions The members of Management hold the following other management/board positions: Managing Director Peter Damgaard Jensen Managing Director of PKA A/S Managing Director of three pension funds administered by PKA Managing Director of the pension funds' limited real property companies Board Chairman of PKA+ Pension Forslkringsselskab A/S Board Chairman of A/S Kjabenhavns Ejendomsselskab Board Chairman of Forstiedcrnes Ejendomsaktleselskab Board Chairman of PKA A1P A/S Board Chairman of Poppelstykket 12 A/S Board Chairman of PKA Skejby Komplementar ApS Board Chairman of PKA Skejby P/S Vice-chairman of f-orca A/S Board member of Forsikringsorganisationernes Fcellessekretariat F.M.B.A. The members of the Board of Directors hold the fallowing other management/board positions: Chairman of the Board Hans Ole Drost Chairman of the Board of SK Horsyning A/S Chairman of the Board of SK Spildcvand A/S Chairman of the Board of SK Cnergisalg A/S Chairman of the Board of SK Gadelys A/S Chairman of the Board of SK Elnet A/S Chairman of the Board of SK Service A/S Chairman of the Board of SK Vand A/S Chairman of the Board of SK Varme A/S Board member of Fonden Capnova Invest Zealand Board member of Den Erhvervsdrivende Fond Vazksthus Sjcelland Vice-chairman Benny Arne Andersen Board member of Fensionskassernes Administration A/S Board member Bodil Marie Otto Board member of Pensionskassernes Administration A/S Board member of Sarnpenslon KP Livsforsikring A/S Board member of Sampension Administrationsselskab A/S Board member of Forbrugsforcningen af 1886 Board member of A/S Knudcmosen Board member Majbrit Beran Berlau Board member of Fonden Fn'staden Chrlstiania Board member Susanne Kure Board member of PKA+ Pension Forsikringsselskab A/S Board member of Investeringsselskabet af 24. februar 2015 A/S Board member of Genan Holding A/S Vice-chairman of the Danish Research and Innovation Policy Council Bestyrelsesmedlem Ulrik Norigaard Board member of Fonden for Entreprengrskab Other members of the Board of Directors have no further other management/board positions. I he Social Workers', Social Pedagogues' and Office Staff Pension Fsmd

11 10 Annual Report 2016 Management Statement We have today presented the Annual Report for The Social Workers', Social Pedagogues' and Office Staff Pension Fund for the 1 January - 31 December 2016 financial year. The Annual Report is submitted in accordance with the Danish Financial Business Act. We find that the consolidated accounts and financial statements give a true and fair view of the Group's and the Pension Fund's assets, liabilities and financial position as at 31 December 2016, as well as the result of the Group's and the Pension Fund's activities In the 1 January - 31 December 2016 financial year. We consider that the Management Review gives a true and fair view of developments in the Group's and the Pension Fund's activities and financial standing, the result for the year and the Group's and Pension Fund's financial position, as well as describing significant risks and uncertainty factors faced by the Group and the Pension Fund. We recommend that the Annual Report be adopted by the General Meeting. Hellerup, 20 March 2017 Management: Peter Darngaard Jensen Managing Director Hellerup, 20 March 2017 Board of Directors: Hans Ole Drost Benny Arnc Andersen Chairman Vice-chairman Poul trik Svcndscn Jan Kongebro Majbrit Beran Berlau Kaj Skov Fred eh ks en CI la Susan ne Grove Andersen Bodil Marie Otto Karen Hovrnand Holte Petersen Jette Sandal Ulrik Nodgaard Susanne Kure The Social Workers', Social Pedagogues' and Office Staff Pension Fund

12 Annual Report The independent auditor's report To the members of the Social Workers', Social Pedagogues' and Office Staff Pension Fund Opinion We have audited the Consolidated Accounts and Financial Statements of the Social Workers', Social Peda gogues' and Office Staff Pension Fund for the 1 January - 31 December 2016 financial year, comprising Income Statement and Total Income Statement, Balance Sheet, Equity Statement and Notes, including Accounting Policies, for the Group as well as the Pension Fund. The Consolidated Accounts and Financial Statements arc prepared in accordance with the Danish Financial Business Act. In our opinion, the Consolidated Accounts and Financial Statements give a fair view of the Group's and the Pension Fund's assets, liabilities and financial position as at 31 December 2016, as well as of the result of the Group's and Pension Fund's activities and the Group's cash flows in the 1 January - 31 December 2016 financial year In accordance with the Danish Financial Business Act. Basis for our opinion We have carried out our audit in accordance with international auditing standards and additional require ments in Denmark. Our responsibility in accordancc with these standards and requirements is described in more detail in the audit report section entitled The auditor's responsibility for the audit of the Consolidated Accounts and Financial Statements'. We are Independent of the Group in accordancc with international ethical rules for auditors (lesba's Ethical Rules) and comply with the additional requirements made in Denmark, Just as we have met our ethical obligations as specified in these rules and requirements. In our opinion, the audit proof we have obtained is adequate and suitable as a basis for our opinion. Management's responsibility for the Consolidated Accounts and Financial Statements Management is responsible for preparing and presenting Consolidated Accounts and Financial Statements that give a true and fair view In accordance with the Danish Financial Business Act. Furthermore, Man agement Is responsible for the Internal controls which Management deems to be necessary for the prepa ration of Consolidated Accounts and Financial Statements without material misstatements regardless of whether such misstatements are the result of fraud or error. When preparing the Consolidated Accounts and Financial Statements, Management is responsible for assessing the ability of the Group and the Pension Fund to continue operations, just as Management is obliged to give information about relevant matters in relation to continued operation and to prepare the Consolidated Accounts and Financial Statements on the basis of a going concern principle of accounting, unless Management Intends either to liquidate the Pension Fund or discontinue operations, or has no other realistic alternative thereto. The auditor's responsibility for the audit of the Consolidated Accounts and Financial Statements Our aim is to achieve a high degree of certainty that the Consolidated Accounts and Financial Statements as a whole are free of material misstatements, regardless of whether such misstatements are the result of fraud or error, and to prepare an audit report with our opinion. A high degree of certainty means just that, but involves no guarantee that an audit carried out in accordance with international auditing standards and the additional requirements in Denmark will always discover material misstatements if such exist. Mis statements may arise as a result of fraud or error and may be considered significant if it is reasonably to be expected that, individually or jointly, they will have an influence on financial decisions made by users of the accounts on the basis of the Consolidated Accounts and the Financial Statements. As part of an audit carried out in accordance with international audit standards and the additional require ments in Denmark, we make professional assessments and maintain a professional scepticism during our audit. In addition: We identify and assess the risk of material misstatements In the Consolidated Accounts and Financial Statements, regardless of whether such misstatements are the result of fraud or error, and we plan and carry out audit action as a reaction to these risks and achieve audit proof which Is adequate and suitable to form the basis of our opinion. The risk of not discovering material misstatements caused by fraud is higher than if material misstatements are the result of error, since fraud may come from con spiracy, forgery, deliberate omissions, misguidance or disregard for internal controls. We obtain an understanding of the internal controls that are relevant to the audit, so as to be able to carry out audit action, which is suitable in the circumstances, but not in order to be able to offer an opinion about the efficiency or effectiveness of the Group's and the company's internal controls. We decide whether the accounting policies applied by Management are suitable, and whether the ac counting estimates and associated information prepared by Management are reasonable. We conclude whether Management's preparation of the Consolidated Accounts and Financial State ments on the basis of a going concern accounting principle is suitable and whether, on the basis of the "I he Social Workers', Social Poctegoguer,' and Ottlce Staff Pension Fund

13 12 Annual Report 2016 audit proof obtained, there is any significant uncertainty associated with events or matters which may create substantial doubts about the Group's and the Pension Fund's ability to continue operations. If we find that significant uncertainty exists, our audit report must give information about this in the Consolidated Accounts or Financial Statements or, if such information is not adequate, we must modify our opinion. Our opinions are based on the audit proof obtained up to the date of our audit report. However, future events or matter may mean that the Group and Pension Fund will no longer be able to continue operations. We assess the overall presentation, structure and contents of the Consolidated Accounts and Financial Statements, including the Notes, and whether the Consolidated Accounts and Financial Statements re flect the underlying transactions and events in such a way that a fair view is given thereof. We obtain adequate, suitable audit proof in regard to the financial information in the companies or the business activities of the Group, so as to be able to give an opinion about the Consolidated Accounts. We are responsible for managing, supervising and performing the Group audit. We have sole responsi bility for our audit opinion. We communicate with the executive management, for example about the planned scope and timing of the audit, as well as about significant observations during our audit, including any significant deficiencies in regard to internal controls which we may identify during our audit. We also make a statement to the executive management specifying that we have complied with relevant ethical requirements concerning independence and we inform the executive management about all rela tions and other matters which may reasonably be thought to Influence our independence and, where rele vant, we Inform about any precautions taken. Statement regarding the Management Review Management Is responsible for the Management Review. Our opinion about the Consolidated Accounts and Financial Statements does not cover the Management Review and we express no opinion with any certainty on the Management Review. When we carry out our audit of the Consolidated Accounts and Financial Statements, it is our responsibility to read the Management Review and, in this connection, to consider whether the Management Review is significantly Inconsistent with the Consolidated Accounts or Financial Statements or seems to contain ma terial misstatements given the knowledge we have obtained in our audit or in any other way. Furthermore, our responsibility includes considering whether the Management Review contains the re quired information as specified in the Danish Financial Business Act. Based on our work, we find that the Management Review is in accordance with the Consolidated Accounts and Financial Statements and has been prepared in accordance with the requirements of the Danish Finan cial Business Act. We have found no material misstatements in the Management Review. The solvency cover key figure Management is responsible for the solvency cover key figure specified in note 2 of the Consolidated Ac counts and Financial Statements. As stated in note 2, the solvency cover key figure is exempted from audit requirements. Consequently, our opinion on the Consolidated Accounts and Financial Statements does not cover the solvency cover key figure and we express no kind of opinion with any certainty on this key figure. In connection with our audit of the Consolidated Accounts and Financial Statements, it is our responsibil ity to consider whether the solvency cover key figure Is significantly inconsistent with the Consolidated Accounts and Financial Statements, or seems to contain material misstatements given the knowledge we have obtained in our audit or in any other way. If, on this basis, we find that the solvency cover key figure contains material misstatements, we must report this. We have nothing to report In this connection. Copenhagen, 20 March 2017 Deloitte State-authorised Public Accountants, Partnership Central Business Reg. No. 33 % Lars Kronow Jacques Peronard State authorised Public Accountant Stale-authorised Public Accountant The Social Workers', Social Pedagogues' ^nd Offir*! Staff Pension Fund

14 Annual Report Income Statement All amounts in DKK mill. Note Pension Fund Consolidated Gross member contributions Reinsurance premiums 3 2, , , , Total member contributions, own account 2, , , ,748.4 Income from affiliated companies Incomc from associated corrpanics Income from investment properties Interest income and dividend, etc. Price adjustrrents Interest costs Administration costs in conncction with investment activities , , , , , , , , , , ,9J Total return on investment 4, , Pension return tax Pension payments -1, , , ,491.9 Total pension payments, own account -1, , , ,491.9 Change to pension provisions, own acc. 5-4, , , ,740.4 Change to profit margin Change to surplus capital Administration costs Pension-related operating costs, own acc Transferred return on investment TECHNICAL PENSION RESULT Investrrent return on equity PROFIT BEFORE TAX Pension return tax, equity PROFIT FOR THE YEAR Other total income TOTAL INCOME FOR THE YEAR Realised profit 7 Profit for the year is transferred lo equity. The Snclal Workors', Social Pedagogues' and Office Staff Pension Fund

15 14 Annual Report 2016 Balance Sheet ASSETS All amounts in DKK mill. Note Pension Fund Consolidated Investment properties , ,193.6 Capital investment in affiliated companies Capital Investment In associated Loans to associated companies , , , , , , , Total investment in affiliated and associated companies 27, , , ,661.1 Capital Investment Mutual trust investment Bonds Sccurcd loans Other loans Deposits with credit institutes Derivative financial instruments , , , , , , , , , , , , , , , , Total other financial investment assets 9 36, , , ,453.2 TOTAL INVESTMENT ASSETS 65, , , ,307.9 Receivables related to direct pension business with pension savers Receivables from affiliated coirpanies Receivables from associated companies Other receivables , TILGODEHAVENDER, I ALT 1, , Deferred tax assets Udskudt selskabsskatteaktiv OTHER ASSETS, TOTAL Interest receivable Other prepayments and accruals TOTAL PREPAYMENTS AND ACCRUALS TOTAL ASSETS 66, , , ,277.6 Guarantees 10 Contingent asset 11 'I he Social Workeis', Social Pedagogues' and Officci Staff Pension Fund

16 Annual Report Balance Sheet LIABILITIES All armunts in DKK mill. Pension Fund Consolidated Note Profit carried forward 5, , , ,452.2 TOTAL EQUITY 5, , , ,452.2 Surplus capital TOTAL SUBORDINATE LOAN CAPITAL Pension provisions Profit margin on pension provisions 13 51, ,974, , ,0 46, TOTAL PROVISIONS FOR PENSION AGREEMENTS AND INVESTMENT 51, , , ,974.9 Defered pension return tax Other provisions TOTAL PROVISIONS FOR COMMITMENTS Debt concerning financial derivatives Debt to credit institutes Pension return tax payable Other debt 9 5, , , , , , , , TOTAL DEBT 8, , , ,258.0 PREPAYMENTS AND ACCRUALS TOTAL LIABILITIES 66, , , ,277.6 ' i i Accounting policies 1 Financial highlights and key ratios for the last five years 2 Contingencies 14 Affiliated and associated parties 15 Risk and risk management 16 Specification of assets and their return 17 Sensitivity information IB The Social Workers', Social Pedagcgues' and Offico Staff Penr.ion Futid

17 Annual Report 2016 Capital All amdiints in DKK mill. Pension Fund Consolidated Equity Equity as at 1 January 5, , , ,357.6 Transferred from profit distribution Other total incorrc 0.0 0, Total equity 5, , , ,452.2 Pension Fund Consolidated Capital base Equity 5; , , ,452.2 Surplus capital Total capital base 6, , ,024.3 The Social Workers', SocUil Pedagogues' and Officc Staff Pension Rind

18 Annual Report Notes All amounts In DKK mill. Note 1 Accounting Policies The Annual Report for the Group and the Pension Fund has been prepared in accordance with the provi sions of the Danish Financial Business Act and the executive accounting order from i:he Danish Financial Supervisory Authority on financial reporting from insurance companies and pension funds. The executive order on the financial statements of pension funds and life assurance companies has been changed with effect from These changes relate to the Implementation of the Solvency II rules. This has led to changes of the accounting policies applied: Pension provisions are calculated as the current value of the best estimate of expected payment flows. A discounting interest graph calculated by EIOPA, the European supervisory authority, is applied together with member behaviour in regard to repurchase and premium-free policies. The Social Workers', Social Pedagogues' and Office Staff Pension Fund has successfully applied for permission to use a discounting interest graph with a VA supplement. This permission has been in force from early-201g. The items Pension Provisions, Collective Bonus Potential and Provisions for Compensations arc gathered in one Item, "Pension Provisions", which consists of the elements Guaranteed Payments, Individual Bonus Potential, Collective Bonus Potential and Risk Margin. The risk margin corresponds to the amount which the Pension Fund expects to have to pay an other insurance enterprise for taking over the risk of settling the holdings. In connection with the opening balance, the risk margin amounted to DKK 495.G mill, and was covered by individual bo nus potential. Special bonus provisions are renamed "Surplus capital" (in the following called Surplus Capital) and the amount Is recognised under "Subordinate Loan Capital". The return margin on pension provisions in 2016 was 0. The effects on the items of the financial statements from the change of accounting policies as from 1 January 2016 are as fo I lows: DKK mill. Equity Surplus capital Pension provisions Provisions for compen sations Collective bonus potential Financial Statements :1.5 5, , ,975.4 Change to value adjustment -554, Change of model for payable bonus Regrouping of Items 5, ,489.8 Opening balance , ,974.9 With reference to Sect. 84 (2) of the executive order on financial statements it has not been found to be possible in practice to change the comparable figures, note information and five-year overviews, so as to make them in line with the new method, as regards the period before 2016, which is why they are not directly comparable with The Annual Report contains an Income Statement for the period I. January - 31 December 2016 and a Balance Sheet as at , based on the new accounting principles. In addition, comparable figures for the corresponding period last year have been included, using the previous accounting principles. The Annual Report is presented in millions of Danish kroner with one decimal. Each figure is rounded off separately. Consequently, variations may exist between the totals and the sum of the underlying figures. The Social Workers', Social Pedayogues' dud Office Staff Pension Fund

19 Annual Report 2016 Principles regarding the distribution of profits and/or losses In accordance with the executive order on the contribution principle, the Pension Fund has notified the Danish Financial Supervisory Authority of its principle for distributing Lhe result of the year under review. The main principle in?.0,16 is that the part of the profit obtained in the year under review and allocated to equity and surplus capital consists of a yield corresponding to the investment return before pension return tax plus a risk return rate of 0.0% of the average pension provisions. Payments to and from equity are deducted from the share of the profit for the year that goes to equity. As from 2016, the principles for allocating a risk return will change, as will the principles for repaying any amounts defrayed from equity and surplus capital. Losses concerning the individual contribution groups covered, which losses are covered by equity and surplus capital, may be retrieved in the subsequent financial year. If possible, from the indi vidual and collective bonus potential of each group. The shares transferred from individual and collective bonus potentials in the subsequent financial year are reported lo the Danish FSA. Consolidated Accounts The Consolidated Accounts comprise the Pension Fund and affiliated companies, where the Pension Fund has a controlling influence. The Consolidated Accounts are made by combining (consolidating) accounting items with a uniform content in the Pension Fund and the affiliated companies. In consolidation, Intra-Group Income and costs are eliminated together with Intra-Group share holdings and outstandings, Intra-Group services are charged on market terms or cost-covering terms. Intra-Group trading in securities and other investment assets is charged at market value. Translation of currencies Transactions in foreign currencies are translated at the exchange rate of the transaction date. Balance Sheet Items In foreign currencies are translated at the closing exchange rate of the Balance Sheet date. All eurrcncy gains and losses are included in the Income Statement under exchange rate regulation. General principles for recognition and measurement Assets are recognised in the Balance Sheet if future gains are likely to accrue to the company and the value of the asset can be measured reliably. Commitments arc recognised In the Balance Sheet if future gains are likely to be paid by the company and the commitment can be measured reliably. The Income Statement recognises all Incomc as it is earned, while costs are recognised by the amounts that concern the financial year under review, Purchase and sale of financial instruments are recognised on the transaction date and such recognition ends when the right to receive/pay cash flows from the financial asset or liability has expired, or if it has been assigned. Purchase or sales transactions which had not yel been carried out on the Balance Sheet date are recognised In the Income Statement in the form of their loss or gain. In the first recognition, financial instruments are measured at current value. Measurement after first recognition is made as described under each accounting item below. Income Statement Gross members' contributions Gross members' contribution in the Pension Fund consists of members' contributions due for January - November as well as expected members' contributions for December. Members' contributions have been reduced by labour market contributions. Pension payments Pension payments consist of processed and paid pensions. Ad minis tration The Pension Fund pays a fixed annual price (rate) per member to PKA A/S for the agreed administrative services; this amount Includes salaries and fees to Management and Board. In addition, the Pension Fund and the affiliated companies pay a fixed fraction of a percent of the net asset current value to cover portfolio management. The rate and the fraction of a percent are determined on market terms. The Social Workers', Social Pnriagoguer." and Office Siaff Pension Fund

20 Annual Report 2016 The costs of administering securities are recognised as administration costs in connection with investment activities. The costs of property administration are deducted from income from investment properly. Return on investment Income from affiliated companies consists of the Pension fund's share of the affiliated companies' operat ing profit after lax. Income from associated companies consists of the Pension Fund's share of the associated companies' op erating profit after tax. Income from Investment properties consists of the result of property operation before adjustment of prop erty values. The costs of property administration are deducted from the result. Interest and dividend, etc., include the interest earned and the dividend received, etc., In the year under review. Price adjustments consist of realised and unrealised gains on investment assets, including value regulation of investment properties. Transferred return on investment Transferred return on Investment has been calculated on the basis of the pro rata share of the result ob tained that goes to equity and is included In the equity investment return item. Pension return tax Pension return tax is recognised in the Income Statement by an amount calculated on the basis of the taxable return in the year under review. The pension return tax that rests on the return that will only be included in the Pension Fund tax basis In a subsequent financial year is recognised as deferred pension return tax. Pension return tax is divided between equity and clients. Equity's share of the pension return tax is calcu lated on the basis of equity's share of the result obtained. The Social Workers', Social Pedacjogues'and Office Staff Pension Fund

21 20 Annual Report 2016 Balance Sheet Assets Investment properties Investment properties are measured at their value on the Balance Sheet date by using the DCF method, or in the alternative the first-year-return method as regards residential properties in uniform, stable opera tion. The measurement takes account of current interest and market conditions and the location, age and state of maintenance of the property, including expected future maintenance costs. The return requirement has been set on the basis of the expectation that, given the required sales efforts, the properties could be sold within a reasonable time period. Construction projects are measured at cost during the construction period. Minor properties arc measured and recognised at the latest public assessment value. Value adjustments of investment properties are recognized under Price adjustments via the Income Statement. Capital participation Listed capital participation is measured al the value of stock exchange closing prices on the Balance Sheet date. Unlisted capital participation Is measured at current value based on an individual assessment of the com panies with a view to determining the price which such shares are expected to fetch. Measurement is based on the key ratios and valuation methods normally used when measuring companies. Units in mutual trusts Units in mutual trusts are measured at the value of the stock exchange closing prices op the Balance Sheet date. Bonds Fixed-interest bonds, convertible bonds and indexed bonds plus index-related adjustments are measured at the value of the stock exchange closing prices on the Balance Sheet date. The currcnt value of drawn bonds Is based on the present value of the bonds, which is close to the nominal value of the bonds. Secured loans Mortgage bonds arc measured at a calculated current vale based on the effective interest rate of the claim. Other /oa/)s Subordinated loan capital is recognised as a calculatcd current value based on information about the sol vency of the company. Provisions are made to losses if this is warranted by the said information, Repurchase/re versa/ Securities sold as part of a sell and buy-back transaction stay on the Balance Sheet under the various main items, e.g. "bonds" that carry interest and are subject to security price adjustment. The received amounl. is recognized and carries interest as debt to the other party to the transaction. Securities acquired as part of a purchase and sell-back transaction arc recognized as accounts receivable by the other party, while the return is recogniscd under Interest. Derivative financial instruments Derivative financial instruments used for interest risk hedging and other purposes are measured at current value. Instruments with a positive current value arc entered as assets, while instruments with a negative current value are entered as liabilities, Capital participation in affiliated companies Capital participation in affiliated companies is measured at intrinsic value (the equity method). Using this method, the operating results of affiliated companies are recognised In the Pension Fund Income State ment. The Pension Fund's profit and equity are thus identical to those of the Group. The accounting results from affiliated companies result from using recognition and measurement methods identical to the principles used in the Pension Fund. Capital participation in associated companies Capital participation in associated companies is recognised at the Pension Fund ownership share of the companies' intrinsic accounting value according to the last known accounts. The companies' intrinsic value The Social Workers', Social Peddgoyues' and Office Staff Pension Fund

22 Annual Report results from using measurement methods Identical to the methods used in the Pension Fund. All regula tions are recognised in income from associated companies. Associated companies arc defined as companies that are not affiliated companies, but where the Group's companies have shares representing more than 20 % of the voting rights, and where considerable influ ence is exercised over companies' operational and financial management through representation on the boards of companies. Associated companies with a negative intrinsic accounting value are measured at zero and any receivables from such companies are impaired by the parent company's share of the negative intrinsic value to the extent the amount is deemed to be irrecoverable. If the negative intrinsic accounting value exceeds the amount receivable, the remaining amount is recognised under provisions for commitments to the extent the parent company has a legal or actual commitment to cover the obligations of the company concerned. Other items under assefs Accounts receivable are recognised at face value minus write-downs to cover expected losses. Liabilities Equity The Pension Fund's equity belongs to the members jointly. Provision for pension agreements and investment contracts Provisions for pension agreements and Investment contracts are measured by the Pension Fund Actuary in charge. The pension provisions consist of the following elements: Guaranteed Payments, Individual Bonus Poten tial, Collective Bonus Potential and Risk Margin. The provision element entitled Guaranteed Payments is measured in that, for each insurance policy, the market value of the expected, guaranteed payment flows Is calculated. The market value is calculated by discounting individual payments using the interest rate calculated by EIOPA, the European supervisory authority, plus a Volatility Adjustment supplement and minus the pension return tax. Guaranteed Pay ments contain an estimated amount to cover future Insurance payments stemming from insurance events which occurred during the financial year, but where no claim had yet been filed on the date of the Balance Sheet. Individual Bonus Potential contains the value of obligations to grant a bonus on the basis of the amount deposited under the individual Insurance policy qualifying for the bonus. Collective Bonus Potential contains the share of the insurance holding of realised results which has been set aside as a collective provision for the insurance policies qualifying for the bonus. 'I he Risk Margin contains the amount which the Pension Fund must expect to have to pay to another insur ance company to take over the risk of settling the holding. As far as possible, the Risk Margin is obtained primarily from the Individual Bonus Potential and subsequently form the Collective Bonus Potential - or alternatively from the capital base. The Risk Margin Is calculated in accordance with the Solvency II rules. The assumptions regarding the best estimate of mortality are based on the FSA benchmark for current mortality, which is adapted to the Pension Fund's specific situation as regards the observed mortality of the policy holders. In addition, the FSA benchmark for expected life expectancy improvements Is integrated. The FSA benchmark Is updated annually and the Pension Fund carries out an annual analysis of any devia tions from the benchmark for current mortality. The assumptions regarding best estimate of disablement are based observed disablement in recent years The discounting Interest graph and the assumptions on mortality are the assumptions which have the highest effect on the measurement of provisions made. Collective bonus potential consists of members' share of the results obtained by bonus-qualifying pension schemes. The amount has been set aside collectively and has thus not been assigned lo each member at this point. Profit margin The profit margin shows the present value of profit not yet earned by the Pension Fund on insurance poli cies which are to be recognised in the Income Statement over time. The profit margin is segregated from The Social Workers', Social PedcKjofjutii;' and Office Staff Pension Fund

23 22 Annual Report 2016 the pension provisions. Surplus capital Surplus capital forms part of the base capital on equal terms with equity capital, but over time it accrues to the insured and thus forms part of the provision made for insurance contracts. Other items under liabilities Debt Is measured at amortised cost, which normally corresponds to the face value. Key ratios and sensitivity information Key ratios and sensitivity information are prepared in accordance with the rules of the Danish FSA's execu live accounting order on financial reports covering insurance companies and pension funds. The Social Workers', SocUil Pedofloguos' and Offirn Staff Pension Fund

24 Annual Report 2016?3 Note 2 Financial highlights and key ratios for the last five years Pension Fund Members' contribution 2,351 2,473 2,644 2,749 2,973 Pension payments * -1,228-1,300-2,307-1,492-1,553 Return on investment 5,314 1,914 5, ,439 Total pension-related operating costs Result of re-insurance Technical result Profit for the year Total provisions for pension agreements * 38,214 40,593 45,682 46,975 51,627 Total equity 5,698 6,066 5,358 5,452 5,807 Total assets 50,181 50,678 56,388 63,194 66,683 Consolidated Members' contribution 2,351 2,473 2,644 2,749 2,973 Pension payments * -1,228-1,300-2,307-1,492-1,553 Return on investment 5,314 1,914 5, ,439 Total pension-related operating costs Result of re-insurance Technical result Profit for the year Total provisions for pension agreements w 38,214 40,593 45,682 46,975 51,627 Total equity 5,698 6,066 5,358 5,452 5,807 Total assets 50,280 50,815 56,451 63,278 66,743 Key ratios Return related to average Interest products * % ,3 Cost on provisions * % Costs per member kr Return on equity after tax % ,3 Return on surplus capital, to which return as equity is allocated % ,9 Solvency cover* ** % * The ministerial order on financial statemants was changcd as from 2016, With reference to Sect. B4 (2) of the n-mistcrml order, it has not been found to be practically possible to change the fiveyear overview, so as to make the figures for the period before 2016 in line with the new nethod. Consequently, the figures for IS arc not dircctly comparable with *'+ The key figure called solvency cover is exempted from the audit requirement, cf. ministerial order no. 937 of 27 July 2015 on financial reporting of insurance companies and transverse pension funds, so no audit has been perfonred. The Social Workers', Socltil Pedagooues' ond Office Staff Pension Fund

25 24 Annual Report 2016 Note 3 Pension Fund Consolidated Gross member contributions Direct insurance with bonus scheme Member conlrlbucions 2f3GG.3 2, , ,278.0 Meirber single premiums Group schemes Total gross member contributions 2, , , ,748.8 All contributions are direct Insurace with a bonus right. Pens/on agreements Taken out as part of an employee plan 2, , , ,628.7 Taken out by private individuals Group schemes Premiums divided into countries; Denmark 2, , , ,741.7 Other EU countries Other countries Calculation of number of policy holders Taken out as part of an employee plan 111, , , ,712 Taken out by private Individuals 1,781 1,781 Group schemes 62,163 60,969 62,163 60,969 The Pension Fund's total number of insured members has been calculated incl. memberships from which only spouse and children pensions are paid. Note 4 Pension Fund Consolidated Price adjustments Investment properties Capital investment Investment fund shares Bonds Other loans Denvative financial instruments , ,00J.7 Cash in hand and at bank Total price adjustments , , ,910.5 Note 5 Change to pension provisions, own acc. Individual bonus potential Guaranteed payrrcnts Bonus potential on future rrember contribu Bonus potential on deferred pensions Risk margin Compensation provisions Collective bonus potential Pension Fund Consolidated , , , , , , , , Total change to pension prov., own acc. 4, , , ,740.4 The Social Workers', Social Pedagogues' and Office Staff Pension Fund

26 Annual Report Note 6 Pension Fund Consolidated Pension-related operating costs, own acc Board fees (amounts in thousands of DKK) Hans Ole Drost (entered ) 183, ,7 Benny Arne Andersen 143, ,4 Bodil Marie Otto * 52, Ella Susanne Grove Andersen ,5 lb Terp (resigned ) 8,7 5:1,5 8, Jette Sandal 52, Kaj Skov Frederikscn 52.S Poul-Frlk Svendsen Majbrit B. Berlau * , Susan ne Kure Karen Hovmand Holte Petersen K Finn Schelbye (resigned 31.12,2016) Jan Kongebro (entered 01, ) Jens StenbEek (resigned ) Total Board fees 1, , * the fee has been paid to the designated trade union organisation. Salaries and fees Management and significant fixed-pay risk-takers partially work for and are paid by the Pension Fund, The actuary In chargc works for, but Is not paid by, the Pension Fund, CEO Peter Damgaard Jensen received total remunerations for all his functions from the administration company, PKA A/S, in the amount of DKK 4,091,000, Detailed information about salaries In the adirinistrative community PKA can be read at pka,dk. Pension Fund Consolidated Salaries (amounts in DKK thousands) Salaries 1, , , ,652.4 Pension contributions Payroll tax, etc Total salaries 2, ,244.9 ; i 9 r 2, ,244.9 Management has received a fixed salary only, DKK 311,600. Other significant risk-takers, 6 persons, have received fixed salaries only, totalling 1,766,800. The average number of full-time equivalent employees in 2016 was 1. Auditor (amounts in thousands of DKK) Most of the auditor's work comprises all of the pension funds adrrinistered by PKA A/S, The Pension Fund's share of audit costs incl. VAT is: Pension Fund Consolidated Delollle Statutory audit of the Financial Staten-cnt , Other assurance engagements Total audit costs The Social Workers', Social Poclagogues' and Office SUiff Pension Fund

27 26 Annual Report 2016 Note 7 Pension Fund Consolidated Realised profit Realised Interest 3, , Realised risk Realised cost Market value adjust n"cnt Total realised profit 4, , , ,591.5 which is divided into: Crediting of bonus 1, , , ,373.6 Pension return tax Return for surplus capital A Pension return tax conccrning surplus capital Transferred to equity Pension return tax on return on equity b Change in collectivc bonus potential 1, , Total distribution 4, , , ,591.5 Movements on equity: From realised profit , Transferred to provisions Profit for the year Missing return on equity The principles for distribution of the realised profit and for calculation of risk supplement are described under accounting policies, Note 8 Pension Fund Consolidated Investment properties Current value as at 1 January , ,793.9 Additions of the year under review Divestments of the year under review Value adjustment for the year at current value Total current value ? ,193.6 Weighted average return percentage that fonrs part of deterrrining current value: Properties for residential tenancies Properties for business leases Properties leased to public authorities on long-term contracts The Pension Fund's valuation of investement properties has been based on oxtcmal validation of yield requirements. "Ihe Social Workers', Sor.ial Podaqogues'and Office Staff Pension Fund

28 Annual Report / Note 9 Other fmancicil investment assets The Pension Fund's investrrent policy takes account of a number of social, environmental and ethical aspects. The Pension Fund does not invest in companies that deliberately and consistently infringe on national lasvs or rules laid down by international organisations and adopted by Denmark. Furtherrrore, the Pension Fund does not Invest in companies that manufacture weapons or tobacco. Go to for a continually updated list of the companies in which the Pension Fund has made capital in vestments.. The net assets of the Pension Fund are adnubstered by PKA A/S. Financial instruments (Pension Fund and Consolidated) Book Financial dcri/atives 2016 Yrs to expiry Principal value Options ,758, Swaptions , Swaps , Swaps , Swaps r , ,108.1 Forward currency transactions , ,200.1 Forward currency transactions ,2 Inflation swaps , Inflation swaps r ,2 Book FinonciDl derivatives 2025 Yrs to expiry Principal value Options ,768, Swaptions , Swaps ,775, Swaps , Swaps ' , Forward currency transactions , Forward currency transactions , ,286.2 Derivative financial instruments are linked to significant conditions in regard to the development of Interest rates, share prices and exchange rates. Other financial instrun^cnts, such as bonds, capital investment, etc., are not linked to any special, significant conditions or terrre that could influence future cash flows. The book value of financial derivaties in the Balance Sheet is gross. The sum of all contracts with positive value is recognised in assets under the item "Financial derivatives".the sum of all contracts with negative value is recognised in liabilities under the item "Debt relating to financial derivatives". Note 10 Guarantees 2016 Pension Fund 2015 Consolidated As guarantee for compliance with commitnxnts in hedging interest and share price risks, the Pension Fund has deposited bonds at a net value of 2,620.1 i,r.f)i.fi 2,620.1 l, 60:1,6 Guarantees for repurchase agreement 2, , , ,154.8 The Social Workers', Social Pedagogues' and Office Staff Pension Fund

29 28 Annual Report 2016 Note 11 Contingent asset In 2014, Danish VAT procedures were changed; certain services Lo pension funds are no longer subject to VAT. In February 2016, the Pension Fund submitted an application for repayirent of wrongfully collgctcd VAT for the period 1 February to 2004 up to and including 2015 to the Danish tax authorities; processing of the application is still outstanding. It is still unclear to which extent the Pension Fund will achieve any such repayment, so the size, of the expected receivable Is uncertain, Note 12 Pension Fund Consolidated Surplus capital Surplus capital, start of year , Payrrents received Disbursements Share of realised result after PAL tax Total surplus capital Note 13 Pension Fund Consolidated Pension provisions Pension provisions, start of year 46, , , ,186.4 Profit margin, start of year Total pension provisions, stait of year 46, , , ,186.4 Collective bonus potential, start of year -5, ,489.8 Accumjlated value adj., start of year -4, , , ,371.1, Retrospective provisions, start of year 37, ,815,3 37, ,815.3 Gross contribution 2, ,748,8 2, ,748.8 Interest added 1, ,538,3 1, ,538.3 Pension payments -1, ,491,9-1, ,491.9 Cost supplcnxnt after addition of cost bonus , Risk gain after addition of risk bonus , Pension choice bonus , Transferred to/from members' capital , Other , Retrospective provisions, end of year <10, ,399,2 40, ,399.2 Accurmlated value adjustment, end of year 3,949,6 4, , ,550.6 Collective bonus potential, end of year 7, , Total pension provisions, end of year 51, , , ,949.8 Transferred from collective bonus 4, ,975.4 Transferred from provisions for compensation, end of year Profit margin, end of year Total pension provisions 51, ^ , ,974.9 The pension fund's insurance is comprised by the contribution principle. However, the pension fund has adopted other principles for the distribution of profits obtained than what Is stated In the Contribution Order (Order No. 358 of 6 April 2010). The provisions of the Order are used to the extent they do not violate the principles of the pension fund. In practice, this means that the pension fund does not use a group division as stated in Sect. 3 of the Order. The Social Workers', Social Pedagogues' and Office Staff Pension Fund

30 Annual Report Note 13 continued Breakdown of provisions into original base interest of holdings not comprised by the contribution principle: Guaranteed payments Individual bonuspotential Collective bonuspotential Total Pension provisions as at 1 January 2015 Calculation interest rate 0.01% Calculation interest rate 1,75% Calculation interest rate 2.75% Calculation Interest rate 4.25% -5, , ; , , , , , , , , All groups 22, , , ,479.3 Risk margin, all groups Total pension provisions 46,974.9 Pension provisions as at 31 December 2016 Calculation interest rate 0.01% Calculation interest rate 1.75% Calculation interest rate 2.75% Calculation interest rate 4.25% , , , , , , , , , , , ,466.9 All groups 19, , , ,090.6 Risk margin, all groups Total pension provisions 51,626.5 Return percentage of bonus ratio for insurance holdings not comprised by the contribution principle: 2016 Return percentage 2015 Return percentage 2016 Bonus ratio 2015 Bonus ratio Calculation interest rate 0.01% Calculation interest rate 1.75% Calculation interest rale 2.75% Calculation interest rate 4.25% 8.4% 8.4% 8.4% 8.4% 1.6% 1.6% 1.6% 1.6% 120.5% 68.2% 31.7% 19.6% 106.8% 50.8% 22.1% 16.4% Return on customer funds after costs before tax divided into products: Average interest rate 8.1% The Social Workers', Social Pedagogues' and O'ficc Staff Pension Fund

31 30 Annual Report 2016 Note 14 Pension Fund Consolidated Contingencies As security for insurance-taker provisions, the following assets have been registered: Investment property Capital participation In affiliated companies 3, , , ,621.8 Capital participation in associated compan 24, , , ,911.6 Loans to associated conpanles Capital participation 7, , , ,991.1 Unit trust shares 3, , , ,463.1 Bonds 8, , , ,371.2 Other loans 7, , , ,017.0 Deposits with credit institutes , ,606.3 Derivative financial instruments Receivable from affiliated companies ,5 Cash in hand and at bank ,3 Receivable interesl Total as security for provisions 55, , , ,730.1 Investment assets for take-over after financial year 4,4 1, ,152.6 Investment pledges after deduction of amounts already deposited: Unlisted shares 3, , ,510,6 2,562.1 Forests and farms ,1 Properties Infrastructure , , , , , ,800.6 The Pension Fund participates in various partnerships together with pension funds attached to PKA. The Pension funds are Jointly and severally liable for the conmitrrents of these partnerships. Some of the Group's real properties are subject to a VAT adjustrrcnt obligation. However, a commercial decision to change the use of these properties Is required for this obligation to become a reality. Anh olt Ha /vindm ellepa rk The Pension Fund has guaranteed to LXing bnergy Wind Power A/S and the co owners of Anholt Havvindmallepcirk I/S that, within a specific fra ire work, PKA - Socialradgiverc, Socialpcedagoger oy Kontorpersonale Anholt Havvindn-ellepark K/S will pay its pro rata share of corrtnltments under the ownership agreement concerning Anholt Havvindmallepark I/S and the agreement with DONG Energy Wind Power A/St o operate Anholt Ha wind ma lie park. Code Wind 11 The Pension Fund has pledged a capital contribution to PKA - Socialradgiverc, Soclalpeedagoger og Kontorpersonale Gode Wind 11 K/S of EUR 88.9 mill.; payrrent is on demand if requested by the company's general partner, Via PKA - Socialradgiverc, Socialpa^lagoger og Kontorpersonale Gode Wind II K/S, the Pension Fund participates with a nuirber of other Institutional investors in a consortium Investing in the wind farm Gode Wind II. Towards Dony Energy Wind Power A/S, the Pension Fund has guaranteed for its pro rata share of certain conmitments in the establishnxnt and ownership of Gode Wind II. The guarantee is limited to the Pension Fund's indirect investment pledge: the remaining conmitment on the Balance Sheet date was F.UPx 8.6 irill. The Pension Fund has guaranteed for ceitain commitments resting on Gode Wind II Joint HoldCo P/S towards Gide Wind II lolnt FinCo ApS. On the Balance Sheet date, this guarantee concerned commitments of approx. EUR 80.4 mill. The Social Workers', Social Pedagoyues' and Office Staff Pension Fund

32 Annual Report Note 14 continued Burbo Bank Extension Via PKA Burbo Extension Holding ApS, the Pension Fund participates together with other Danish investors in an investor consortium, which invested in the Burbo Bank Extension off shore wind farm in the UK. The Pension Fuind has guaranteed for its pro rata share fo certain cortvrttments regarding the erection and ownership of Burbo Bank Extension towards a number of parties, including MHI Vestas Offshore Wind UK Ltd, which supplies the wind turbines, and towards the other Danish investorpartners and DONG Energy Wind Power A/S, as well as the project companies of these companies. These guarantee commitments are limited to the Pension Fund's indirect investment pledge; the remaining comrritment on the balance sheet dote was GBP 68.3 mio. GBP. Teeside Renewable Energy Plant Via PKA TeesRHP Holding ApS, the Pension Fund invests in the biomass power plant Teeside Renewable Energy Plant in the UK together with other Danish pension funds and Macquarie Capital, The Pension Fund has guaranteed for Its pro rata share of certain commitments regarding the erection and ownership of Teeside Renewable Energy Plant towards Nordea Bank Danrrark, as part of the total funding of the Investment. The guarantee commitment is limited to the Pension Fund's indirect investment pledge; the remaining commitment as at the balance sheet date was GBP 27.9 mill. Note 15 Affiliated and associated parties, etc. The Pension Fund has invested capital in the following affiliated companies; Socialradgiverncs, Socialpc jagogemes og Kontorpersonalets EJendoirsaktiese Iskab PKA - Soclalradgivere, Socialparfagoger og Kontorpersonale Anholt Havvindmollepark K^S PKA - Socialrldgivere og Socialpccdagoger OWP BUT EN DIEK K/S PKA - Kontorpersonale OWP BUTEIMDIEK K/S PKA - Soclalradgivere, SocialpEedagoger og Kontorpersonale Gode Wind II K/S PKA - Soclalradgivere, Socialpecdagoger og Kontorpersonale OWP BUTENDIEK Komplerrcntar ApS PKA - Soclalradgivere, Soclalp^ftrJagoger og Kontorpersonale GP ApS Activity Investment in land and buildings Investment In wind farms Investment in wind farrre Investment in wind farms Investment In wind fame General partner General partner Com- Com- Owner*- pany pany Domiciled in ship Profit Equity Gentofte 100.0% ,599.8 Gentofte 100.0% Gentofte 100.0% Gentofte 100.0% Gentofte 100,0% Gentofte 100.0% 0.1 0,3 Gentofte 100.0% 0.0 0,1 The Social "Workers', Social Pedagogues'and Office Staff Pension Kund

33 32 Annual Report 2016 Note 15 continued The Pension Fund has invested capital in the following associated companies: Activity Owner- Domiciled in ship Com- Com pany pany Profit Equity PKA A/S Adirinistrative assignmants in relation to pension fund activities etc. Gentofte 29.8% PKA+Pension Forsikringsselskab A/S A/S Kj0benhavns Ejendomssclskab PKA Burbo Extension Holding ApS PKA TeesREP Holding ApS PKA ATP A/S PKA Skejby P/S PKA Skejby KomplcmGntar ApS InvesLeringsselskabet af 24. fcbruar 2015 A/S Emerging Market Corporale Debt I * Errcrging Local Currency Debt II * Emerging Local Currency Debt III * Errerging Local Currency Debt IV * Europaziske High Yield I * Nordamerikanyk High Yield I * Lifeinsurance activity Investrrent In land and buildings Gent oft e 29.8% Gentofte 20.4% Investment in wind farms Gentofte 28.0% Investment in biomass power plant Investrrenl consulting Investment in land and buildings General partner Reuse of tyres Gentofte Emerging markets coiporate Gentofte 28.0% Copenhagen 25.0% Gentofte 35.0% Gentofte 35.0% 22.0% Copenhagen 26. G% Errerging markets local debt Copenhagen 26.2% Emerging markets local debt; Copenhagen 26.'/% Emerging markets local debt Copenhagen 25.4% European high yield Copenhagen 26.6% North American high yield Copenhagen 26.8% , , , , , ,941.1 Nordamerikansk High Yield II * North American high yield Copenhagen 26.7% ,189.8 Nordamerikansk High Yield III * North Arrerican high yield Copenhagen 26.2% Mortgage Backed Securities 1 * Airerican house loans Copenhagen 26.7% ,828.3 Global Equities 1 * Global listed shares Copenhagen 25.6% 1, ,935.5 Low PJsk Equities I * Global listed shares with defensive tilt Copenhagen 25.0% 1, ,750.0 Low Risk Equities II * Global listed shares with defensive tilt Copenhagen 25.0% ,211.1 Global l arge Cap Market Neutral Equity * Market-neutral global listed shares Copenhagen 24.7% ,617.4 The Social Workers', Socicil Peddgogues' and Office Staff Pension Fund

34 Annual Report Note 15 continued The Pension Fund has invested capital in the following associated companies: Global SMID Cap Market Neutral Equity Alternative Risk Premia * Activity Market-neutral global listed shares Long/short derivatives in shares, bonds, raw n-alerials and currency Owner- Domiciled In ship Copenhagen Com- Com pany pany Profit Equity 7.4.6% , % ,188.9 Tactical Trend * PKA Globale Aktier Black Rock Frontier Markets ex GCC Fund B Ydcrst Catastrophe Fund ILS - C02 Segregated Portfolio M<4G Independent European Loan Fund Trend-following in futures within shares, bonds, raw materials and currcncics Global listed shares Global Frontier Markets listed shares Disater insurance Disater insurance European leveraged loons Copenhagen San Francisco Bermuda Cayman Island Dublin 26.2% % , % % , % , G.r>% ,661.5 * Section of the Investing Pro capital trust Note 16 Risk and risk management A number of risks are associated with the pension fund's business model. In connection with its work on risk and solvency, the Board of Directors has identified the major risks associated with the business rrodel: Life assurance risks Markedsrisici, herunder renterisici Outsourcing risk As regards life assurance risks, the biometric risks, which con-prise life expectancy improvements and changes to the number of anticipatory pension recipients, constitute the rrwst significant risks, Based on the Danish FSA's life expectancy regimen, etc., the Pension Fund has adjusted its assurrptions on life expectancy of its members. Market risks are defined as the risk that the market value of assets and liabilities will change as a result of changes to n-arket conditions. The trwst signficant market risks exist in interest rates, shares, foreign exchange and tangible property, as well as in investment in alternative sources of yield. The Pension Fund manages these risks by ensuring the necessary diversification of investments. Investrrents in alternative sources of yields are based on achieving a risk premium hy taking different types of risks in the market - in the short tenn 1-3 year horizon and with the focus on the relative return of different assets, but also in the longer term. In its investment strategy, the Board has laid down the risk framework for the different classes of assets. The pension fund hedges against interest risks on guaranteed, deferred pensions based on the Board's adopted interest risk frarnework. The conscquencc of interest hedging is thai a significant part of the interest risk between liabilities and assets has been eliminated. A significant part of the assets for interest cover are interest swaps, where the Pension Fund pays a variable interest rate and receives a fixed interest rate. These instrurrents have the same characteristic as the guaranteed, deferred pensions in the sense that they increase in value if the interest rate goes down and vice versa. The Social Workers', Social Podngoglies' and Office Staff Pension Fund

35 34 Annual Report 2016 Note 16 continued The Pension Fund uses outsourcing, which gives rise to a focus on the associated risks. There is a risk of making a loss if agreements or controls are inadequate. The Pension Fund has concluded an outsourcing agreement with PKA A/S on full adirinistration. The Board has laid down policies and guidelines for outsourcing significant fields of activity, determining the rules for additional outsourcing from PKA A/S to a third party. This ensures satisfactory follow-up in regard to the various subsuppliers, such as Forca A/S. Note 17 Specification of assets and their retum Accounting value Return in % Primo UltilTVD p.a. before pension return tax Land and buildings 4, , Listed capital investments 8, , Unlisted capital investrrents 16, , Total capital investments 25, , Govemirent- and rnortgaqe credit bonds 16, , Indexlinked bonds 19, Credit bonds and emerqing marked bonds 7, , loans etc Total bonds and loans 24, , Affiliated companies Other financial investment assets 5, , Derivative financial instruments for hedging the net change of assets and liabilities -1, ,635.0 Return in % is weighted in time based on the current return. Note 18 Sensitivity information tvent Impact on capital base Interest increase % points Interest drop % points Share price drop 12 % Pxeal property price drop 8 % Exchange rate risk (VaR 99 %) Loss on counterparts 8 % The Social Workers', Social Pedagogues* ana Office SUiff Pension Fund

36 Arsrapport 2016 Pensionskassen for Socialradgivere, Socialpeedagoger og Kontorpersonale Godkendt ps pensionskassens gcncralforsamling, den 26. april 2017 Dirigent 't/> Tuborg BouleViird 3,?90n llellcrup - CVR nr,

37 Pensionskassen for Socialr^dgivere, Socialpaedagoger og Kontorpersonale Indholdsfortegnelse Ledelsesbcretning 2 Ledelsespatcgning ^0 Den uafh^ngrge revisory revlsionspltegnlng H Rcsultat- og totolindkomstopgerelse ' 13 Balance 14 Kapitalforhold * Noter., i7 Tuborg Boulevard 3, 2'JOO Uellerup - CVR nr

38 2 Arsrapport 2016 Ledelsesberetning Pensionskassen driver pcnsionskasscvirksomhcd. Sorn medletumer optager pensionskassen socialradgivere, socialpcedagoger, degnlnstltutlonsmedhjcelpere, paidagogmcdhjielpere, husholdnlngsledere, VEerkstedsasslstenter, praktlske omsorgsmgdhjcglperc, tcgnsprogstolke sarnt kontorfunklion^rer, der er bcrcttigct og forpligtet til mcdlcmskab af pensionskassen gennem kollektlv overenskomst ellcr ans^ltelsesaftale. Cndvidere optages fra 2016 ogsl porsoncr, dcr ikke haren arbejdsgiverordning men er mcdlcm af de faglige organisationer, der er tllknyttet pensionskassen. Pensionskassen bar organiseret sin virksomhed med Investerlngsaktiviteter i tilknyttede virksomheder. Del er Imidiertid den samlede pensionskassekoncerns resultatcr, dcr har betydning for medlemmets pension. Hovedtallene i denno bcrctning cr derfor prasenterel ps koncernbasis medmindre andet fremgar speclflkt. Arets resultat Koncepncns resultat for 2016 blev et overskud ps 354,5 mlo. kr. Ovcrskuddct foreslas af bestyrelsen overf0rt til nceste ar. Medlemsbidrag og pensionsydelser er sorn forventet stlgende. Pensionskassen er i fortsat vaskst, Idet medlemsbidragene er 1,9 gange pensionsydelserne. Det samlede afkast for pensionsafkastskat af pensionskassens aktlver blev 8,3 % Arets resultat vurderes at vtere tllfredsstillende, og pensionskassen er stadig velkonsoilderet Aret der glk 0t<onoml Pensionskassen forventede, at 2016 ville Vcere praeget af moderat stigende vskst I bade USA og Europa. Der var forventnlng om rentestlgnlng, sorn ffllge af stigende energiprlser og dermed 0gGt inflation var praget af to store beglvenheder; i junl besluttede briteme at Storbrltannlen ska! forlade EU efter ncermere forhandllng af vllkar, og i novembcr blev Donald Trump valgt til USA's nceste president. Indtil videre har ingen af beglvenhederne haft maerkbare 0konomiske konsekvenser, og I USA steg awlemarkederne stlk Imod forventnlng efter valget af Trump. Ellcrs b0d 2016 ps fortsat moderat vaekst og faldende arbejdsl0shed I bide USA og Europa. Inflationcn steg prlmaert som f0lge af stigende ravarepriser. Stigende ravareprlser bidrog ogsa til at stabilisere den. 0konomiske udvikling I emerging markets lande. De amerlkanske og curop^iske centralbanker fortsatte deres lempelige pengepolitik i 2016 med en kort rente omkring nul. 1 slutnlngen af 2016 satte den amerikanske centralbatik dog renten op, og den europaeiske centralbank reducerer opk0benc af obligationer fra marts Begge dele skal ses 1 lyset af den sti gende inflation og moderate Vcekst. De globale aktlemarkeder steg mod 8,7 % i I det hele taget gav mere risikofyldte aktiver gode af kast I 2016, mens renteudvikllngen I store traek var uforandr et. Kontorente Pensionskassens kontorente har I l0bet af 2016 veeret fastsat til 4,8 "fa f0r skal. Kontorenten or ha^vct til 5,0 % f0r skat I 2017, og det er forventnlng en, at kontorenten vll vaere minimum 5 % i dc kommende fem ar. Privat opsparing har medlemmcrne faet mulighed for at oprette en privat opsparing I pensionskassen. Opsparingen eret fleksibelt supplement til medlemmernes arbejdsgiverordning, og tilbyder udbetalingssikret opspa ring 1 alderssum, ratepension og iivsvarig alderspensiori. I august 2016 fik en del af de medlemmer, der havde en privat opsparing I PKA-l- Pension, flyttet denne til pensionskassen, ' blev det ogsa muligt for personer, der ikke har en arbejdsgiverordning men er medlem af de faglige organisationer, der er tllknyttet pensionskassen, at oprette en ordning I pensionskassen. Peiibionskiissoti for Socialiadglvere, Socialptedagcger oy Kontorpcrsonale

39 Arsrapport 2016 Pensionskassekoncemen Pensionskassens tllknyttcde (100 % ejedc) vfrksomheder pr. 31. deccmber 2016 fremgar af konccrnovorslgten, Pensionskassen for Socialradglvere, Socialp^dagogcr og Kontorpersonale Socialradglvemes, Socialpcedagogernes og Kontorpersonalets Ejendomsaktieselskab PKA - Socialrldglvere, Soclalpeedagoger og Kontorpersonale Anholt Havvindm0llepark K/S PKA - SodalrSdgivere og Sodalp^Gdagoger OWP BUTENDfEK K/S PKA - Kontorpersonale OWP BUTENDIEK K/S PKA - Socialradglvere; Socialpcedagoger og Kontorpersonale Code Wind II K/S PKA - Socialradgivere, Socialpcedagoger og Kontorpersonale OWP BUTENDIEK Komplementar ApS PKA - Socialradgivere, Sucialpiedagoger og Kontorpersonale GP ApS Pensionskassens ejendomsaktieselskab Selskahot har til formal at eje og drive fast ejendom med henblik pa at opna langsigtet forrentning af den Investerede kapltal, Selskabernes resultat for udger et overskud pa 177,7 mio. kr., der er pavirket af en opskrlvning af ejendommg. SocialrSdgivernes, Socialpcedagogernes og Kontorpersonalets Ejendomsaktieselskab deltager i Interessentskabcr sammen med andre ejendomsaktleselskaber tllknyttet PKA. Interessenlskaberne offentligg0i- ikke selvstcfindige arsrapporter under henvlsning til bestemmelserne I Srsregnskabsloven. Interessentskaberne indarbejdes pro rata I interessenternes arsregnskabcr. Anholt Havvindin0llepark Selskabets aktlvltet er ejerskab af 4,9% af Anholt Havvlndm0llepark I/S. Selskabets resultat for 2016 udgpr et overskud pa 61,7 mio. kr., hvilket eri overcnsstemmelse med forventningerne. OWP Butendlek Aktivitctcn I do to OWP Butendlek K/S'er er ejerskab af Ulsamrnen 6,4 % af en tysk havvlndmallepark, OWP Butendlek GmbH &Co. KG. Selskabcrnc forventes solgt Inden udgangen af fprste kvartal 2017, Der er underskrevet salgsaftale, som afventer godkcndclsc af konkurrencemyndlghedeme. Selskabcrne er veerdiansat til forvenlet salgsprls, Selskabernes resultat for 2016 udgpret overskud p 155,7 mio. kr. Pensionskassen for Soclalradglvoio, Sodcjlpiedagoger og Kontorpersonnle

40 4 Aisi apport 2016 Code Wind II Selskabets akcmtet er ejerskab af 13,7 % af Gode Wind II Joint HoIdCo P/S, som sammen med wvrigc investorer ejer 50 % af en tysk hawindm0llcpark OpCo German 011G. Selskabets resultat for 2016 udgor et overskud pa 71,7 mio. kr. Opforelsen af parken er fuldfert i PKA - SoclalrSdgfvere, Socia/peedagoger og Kontorpersonale OWP Butendiek Komplementar ApS Det tidligere PKA - SoclalrSdgivcrc, Socialpsdagoger og Kontorpersonale GP ApS er i forbindelse med det forventede salg af dc to OV^/P Butendiek K/S' cr omdobt til PKA - Socialradgivere, SoclalpEedagoger og Kontorpersonale OWP Butendiek Komplementar ApS og fungcrer udelukkende som komplementar for de to OWP Butentiek K/S'er. Selskabet Indgar I den forventede handel. Resultatet for 2016 er et overskud pa 0,1 mio. kr. PKA - Socialradgivere, Socialpeedagoger og Kontorpersonale GP ApS Selskabet cr stiftet 1 forbindelse med udsklllelse af de to OWP Butendiek K/S'er og fungercr som komple mentar for penslonskassens 0vrige Investerlnger via kommandltselskaber i havvindmalieparkeme, Resul tatet for 2016 or 0,0 mio. kr. Investerlnger og Samfundsansuar Pensionskassons retnlngsllnjer for ansvarlige investerlnger falger prinrlpperne I FN's Global Compact. Som et tilufig til FN's Global Compact har penslonskasscn vedtaget en politik for, at der Ikke Investeres i kontroverslelle vaben, kulmincr eller tobak. I bestyrelsens beretning til generalforsamlingcn cr der redeyjort for udviklingen I arbejdet mod retningslln- Jerne og aktivt ejerskab. Beretnlngen er tilg^nyelly pa pensionskassens hjemmeside. Det aktlve ejerskab ud0vc5 ved lebende at v^ere i dialog med de selskabcr, der er investeret i og sikre, at de overholder penslanskassens retnlngsllnjer. Lever selskabet ikke op til retnlngslinjerne, gar penslonskassen i konstruktlv di alog med selskabet for at brlnge oveitr^delsen til oph0r. Forts^tter selskabet med at overtrade retnlngs linjerne, oy er der Ikke udsigt til varlg forbedring hos selskabet^ vll selskabet bllve ekskluderet fra pensi onskassens investerlngsunlvers. Pensionskassen offentllgg0r pa sin hjemmeside den aktuelle llste over ekskluderede selskaber. Pensionskassens aktlve ejerskab varetages I samarbejde mod en International screenings- og engagementspartner, der giver pensionskassen ekstra gennemslagskraft 1 handhcevelsen af retnlngslinjerne.! for- Icengelse af pensionskassens retningslinjer arbejder samarbejdspartneren ligeledes for at fremmeo bestpractices gennem langsigtede dialoger med de selskabcr, som pensionskassen har Investeret 1. Pa pensi onskassens hjemmeside findes desuden uddybende redeg0reisgr for overholdelse af retnlngslinjerne og det aktive ejerskab, I 2015 vedtog FN sytten baeredygtlghedsmal, der ska I bekcempe fattigdom og sikre b^redygtlg udvikling frem mod ar Pensionskassen har fokus pa, at investerlnger og det aktive ejerskab sseiligt brdrager III opfyldelseti af sel<s af malene; rent drikkevand (mil 6), beeredygtig energl (mal 7), anstcendlge jobs og 0konomisk vcekst (m l 8), Industri, innovation og Infrastruktur (mal 9), babredygtige byer og lokalsamfund (mal 11) samt kllmaindsats (mal 13). Pensionskassen revlderer l0bende, hvilke baeredygtlghedsmal investeringerne skal underst0tte. I 2016 investerede pensionskassen sammen med de 0vrige penslonskasser i PKA-samarbejdet ca. 3 inla. kr. i den engelske havvindnuallepark, Burbo Bank Extension, der vil producere str0m til flere end husstande. Derudover Investerer pensionskasserne 1,3 mia. kr. I et blomassekraftvcerk, der Tyres med basredygtig biotnasse. Kraftva?rket vll producere strum til ca husstande tog pensionskassen pa baggrund af finansiellc og klimamcesslge ovcrvejelser sit f0rste skrift mod al reduce re eksponeringen i C02-lntensive selskaber. Typlsk er der tale om mine, forsynings- og energlselskaber. Pensionskassen ysr I dialog med selskaberne, hvor malet er, at de reducerer deres kulforretning oy omstillertil mere klimavenlige energikllder. Selskaberne skal fremucgge en forretnlngsstratcgi, der udfaser deres kulaktlvlteter, tager h^jde for reguleringer af energisektoren og det pgede politiske kllmafokus. Er selskabet Ikke i stand til det, sa szelger pensionskassen sin ejerandel og ekskluderer selskabet. Forcl0big er 40 selskaber ekskluderet. Pensionskassens ambition er Ikke at srelge sine ejerandele, men derlmod pavirke selskaberne i en breredygtig retniny. Det aktive ejerskab har vist sin veerdi og rykket selskaberne I en btcrcdygtig retnlng. Indtll videre har 10 selskaber layt strategler for reduktion af kulaktiviteter, og pensionskassen har derfor beholdt sine ejerandele i selskaber ne. Pensionskassen for Socialradgivere, Socinlpa^dagoger og Kontorpersonale

41 Arsrapport Strategfen fra kulsektoren blev I 2016 fort vldere til ollescktoren, hvor pensionskassen ekskluderode 2 selskaber, hvor udvindlng af olicsand udgar over 50 procent af forretningen. Pensionskassen forventer, at der kommer yderligere eksklusloner I ollescktoren I ^016 lancerede pensionskassen ud fra flnanslelle og klimamcesslge overvejelser en ny klrmastrategi for den danske ejendomsporteffllje. Strategien ska! bldrage til den gr0nne omstllling og slkre ejendommenes VEerdl og afkast til medlemmerne. Trem mod 2020 vil pensionskassen reducere den gennemsnltllge C02- udledning med 40 procent pr. kvadratmeter. Det svarer til, at ejendomsportcf0ljen gsr rra en gennemsnitllg energim^rknlng C til energimierknlng B i Derudover fik pensionskassen b^rcdygtighedscertlflceret to cjendomme. En kontorejendom var med I et pilotforsflg fra DGBN,-ordningen/ der ska! lofte arbejdet med bceredygllglied for ekslsterende pjendomme. Ejendommen modtog guld, som er den n^sthsjoste karakter. Samtidig blev Sundhedshuset I Vejle guld-certiflceret fra LEED-ordnlngen2. Derudover byggede pensionskassen Danmarks ferste svanemairkede lejeboliger, hvor alle materialer lever op til skrappe krav til rnilja- og sundhedsskadeiige stoffer. Ejendommen bar et lavt energiforbrug, sundt Indeklima og fokus p bceredygtlghed I hele ejendommens lovetid - fra opf0relse og drift til genanvendelse af materialer. Pensionskassen vil fortsat arbejde for, at nye cjendomme enten bliver certlflceret 1 den h0je ende af skalacn eller svanem^rket. I 2016 investeredo pensionskassen sammen tried de 0vrige pensionskasser i PKA-samarbejdet 200 mfo. kr. i en ny dansk landbrugsfond, der forbedrer produktlon, distribution og salg af fadevarer I Aslen, Afrlka og Latlnamerika. Fonderi Investerer i projekter, hvor teknologl og viden fra danske landbrugs- og f0devarevlrksomheder kan Isfte effektlviteten og produktlonen af f0devarer i udvlklingslandene til de voksende befolkninger. Fonden bldrager til at skabe jobs og Vcekst I udvlklingslandene, og qua pensionskassens aktive ejerskab arbejdes der l0bende for, at Jobskabelsen sker pa ordentllge Ian- og arbejdsvllksr. Afkast Detsamlede afkast r 2016 blev ps 8,3 %, svarende til 4.438,6 mio. kr. Samtllge afkastklasser gav poslllve afkast Aktler, Infrastruktur og kreditobligationer bldrog med toclfrede afkast, mens afkastet pa ejendotnme, investment grade obllgationcr og absolut afkast var lavere, men meget tilfredsstlllende, Samarbejde om Investerfnger og Mkvlder Pensionskassens formue forvaltes af PKA A/S og pensionskassen samarbejder efter indglet aftale med andre pensionskasser admlnlstreret af PKA A/S om effektiv og ratlonel styring af investerlnger og likvidcr for at opna sl0rst muligt afkast og minlmering af omkostnlnger. Afledte finansielle instrumenter Pensionskassen anvender 1 VEesenlllgt omfang afledte finansielle instrumenter til investerings- og afdeekningsformal. Administration Pensionskassen og de tllknyttede virksomheder administrcres af PKA A/S. PKA A/S har outsourcet en del af sine administrative opgaver blandt andet til Forca A/S. Direktioncn og VEesentllge risikotagcre med fast ibn er delvist ansat og afl0nnet af pensionskassen. Den ansvarshavende aktuar er ansat men Ikke afl0nnet af pensionskassen. Status for opfyldelse af msltal for det undei repraesenterede k0n I ledelsen Der er I lov om finansiel virksomhed krav om, at finansielle virksomheder skal opstllle mlltal for den k0nsmicssigg repraesentation i bestyrelsen samt udarbejde en politlk for ligerepr^sentatlon I ledelsen af selskabet, hvis der er en underreprassentatlon af det ene k0n i bestyrelsen. Der er underrepraasentatlon, hvis det ene ken er reprffisenteret med mlndre end 40 % i bestyrelsen. 1 Tysk bferedygdghedsccrlilicciingsordning tilpassct danske vilksr, der bl.a. bedomnierejendoinmeus miljumit'ssigc-. okouomiskc-, sociale og funktionelle kvaliloler. ' Aiticrikan.sk bajredygtigliedsceilifica-ingsoidnhig, dor bl.a, bedommer qjendominens iniljumawsige-, okonomiske-, sociale og funktionelle kvalilcler. Pensionskassen for Soclalr5dgivere; Sodalp.xdaciuger og Kontorpersonalo

42 6 Arsrapport 2016 Reglerne om maltal for ksnsrcprajsentation i bestyrelsen tager udgangspunkt I de generalforsamlingsvalgte medlemmer af bestyrelsen, men I pensionskassen (iripeges et flertal af bestyrclscsmedlemmeme af overenskomstparteme. Det blivcr pa den baggrund ikke retvlsendc at vedtage msltal for de gencraiforsamlingsvalgto medlemmer af bestyrelsen. Bestyrelsen har derfor fastsat et maltal for den k^nsm^sslge sammensaetnlng af den samlede bestyrelse. Bestyrelsen har besluttet, at rnaltallet for mfend I bestyrelsen skal vsere 25 % og maltallet^for kvlnder i bestyrelsen skal vsere 10 %. Ved liets udgang var den konstriccsstgc andel i bestyrelsen sadan, at der var 50 % mecnd i bestyrelsen og 50 % kvlnder i bes^'relsen. De opstillede maltal er saledes opfyldt. Der er Ikke vedtaget en politik for ligereprcesentatlon i ledelseslagcne under dlrektlonen I pensionskassen. Penslonskassen totaladminlstreres af PKA A/S. PKA A/S havde i 2016 en kensma^ssig fordeling I ledelseslagene under dlrektlonen pa 57 % meend og 43 % kvlnder, og der er pa den baggrund Ikke udarbejdet cn politik for k0nsma2ssig ligereprcesentatlon I de ^vrige ledelseslag I PKA A/S. Revisionsudvalg I henhold til lovgivnlngen skal penslonskassen etablcre et revlslonsudvalg. Formanden skal vsre uafheenglg og mindst et medlem skal have kvalifikationer Indenfor regnskabsveesen eller revision. Formanden for revisionsudvalget er Ulrik N0dgaard, som opfylder kravene om bade uafhasnglghed og kvalifikationer Inden for regnskabsvassen eller revision. De 0vrige medlemmer af revlslonsudvalgct er Benny Andersen og Susanne Kure. Rislcl og solvens forbundet med pensionskassens forretningsmodel Penslonskasscns forretningsmodel er I et rlslkoperspektiv simpel, da den bygger pa en overenskomstbaseret, kollektlv og solldarisk arbejdsmarkedspenslonsordnlng, hvor der anvendes outsourcing i vassentllgt omfang. De v Gscntllg5tc rislcl knytter slg til markedsrisici, forsikringsmcesslge rlsici og outsourcing. MarUedsrislcl o Penslonskassen udbyder el gennemsnltsrenteprodukt. Nye medlemmer optages til en grundlagsrentc pa 0 pet., Ilgesom pensionskassen stadig har cn del medlemmer med renter pa mellem 1,75-4,25 pet. Dette med fare r en eksponering mod renterlslko, som l0bende afdeekkes. Penslonskassen ^nsker at levere robuste pensioner til sine medlemmer. Dette sikres ved en langslgtet Investeringsstrategi, hvor rnalet er at opna h0je, stabile afkast pa en ansvarlig made, der som minimum kan honorere afkastkravet fra do forventpde pensioner. Et vedvarende lavt afkast pa investerlngsaktlverne eller store finansielle! tab er en risiko mod at kunne levere robuste pensioner. Den eksponering or pensionskassens markedsrlslko. Rlsikoen afdaskkes ved at sprede investerlngerne I en r ckke forskellige aktivklasser, Der investeres kollektlvt for medlemmerne. Rvenluelle tab pa investerlngerne skal deckkes af kollektivet, men pensionskassens andel af bonuspotenllaler slkrcr, at eventuelle tab pa de finansielle markeder ikke overvicltes til medlemmernes depoter i de enkelte ar, men at medlemmerne I stedet far tllskrevct den til enhver tld udmeldte kontorente. Rlslkotagningen er en forudssetnlng for at opna et tllstrcekkeligt afkast til at sikre robuste pensioner. Det er i den sammehheeng en vassentlig opgave for bestyrelsen at fa fastlagt den 0nskedc risikoappetlt I form af den valgte investeringsstrategi. Pensionskassens rlsikoappetit er fastsat ud fra to mil. Pensionskassen beskytter medlemmernes pensio ner (PBG), og pensionskassen overholder gmldende solvensregler. Bestyrelsen fastsaetter i sin risikostyringspolitik sikkerhedsniveaueme for PBG-grcenserne, der giyer de risikomicesslge rammer for penslons kassen i foriioid til de forventcde pensioner. I tiling kan solvensoverdcekningen i s^rllge tllfcelde s^tte ra trim erne for pensionskassens rlsikotagning. Pensionskassen har en kapitalplan og en ntsdplan baseret pa rislkostyringsmodellen (PBG) samt solvenskapltalkravct (SCR). I kapltalplanen skpnnes den finansielle situation i pensionskassens strategiske plan- Icegningsperiode at vaere betryggende. Penslonskassen for SocktlrSdglverc, Socialpcedagoger og Kontorpersonale

43 Arsrappori; 2016 y Forsikr/ngsmazsslge risicl Penslonskassen giver livsvarige pensioner, og er saledcs risikomecssigt eksponeret mod -endrlngcr l;il den forventede levealder blandt medlcmmerne. Pcnsionskassen eren solidarisk ordning med invalldiletsdieknlng uden krav cm helbredsoplysnlnger ved dptagelse, sa la:nge medlemmet er omfattot af cn af de omfattede raggrupper. Pensionskasscn er risikonitcssigt eksponeret mod udviklingen I f^rtidspensioneringen af medlemmerne. Penslonskassen overvager udviklingen i de forsikringsmasssige risici tcet, og hensatter i honhold til Finanstilsynets levetidsbenchmark. Outsourcing Pensionskassen anvender outsourcing i Vcesentligt omfang. Der er dlrekte outsourcing til PKA A/S, der Igen har videreoutsourcct en stor del af drlften til Forca A/S. Administration af ejendomsinvesteringer er outsourcet tll 'DEAS A/S. Risikoen styres I form af kontrollcr og servlceleveranceaftaler. Solvens II Pr. 1. januar 2016 trsdte Solvens II regierne i kraft, og der er i denne forbindelse udstedt nye regnskabsregler, som sikrer en fi0j grad af konslstens mcllcm opgorclser til solvensformsl og opgsrelser til rcgnskabsm^esslge formal, Overgangen til nye regnskabsregler lndeba?rer blandt andct, at medlemsadfcerd kan indregnes i pensionshensasltelserne, og at der skal anvendes en diskonterlngsrentekurve opgjort af den europ^lske tilsynsmyndighed EIOPA. Penslonskassen har ans^gt og opnaet tilladelse til at anvende et tilteg til kurven, detsskaldte VA-tlllieg. Kapltalforhold Egenkapitalen er I 2016 forgget med 354,5 mio. kr. til 5.806,6 mio. kr. Kapltalgrundlaget udgor herefter 6.505,1 mio, kr. mod 6.024,3 mio. kr. i Solvenskravet SCR er opgjort efter standardmodellen. Pr. 1. januar 2016 er SCR opgjort til 1.459,2 mio. kr. og udgsr ultimo ,5 mio. kr. Ny regnskabsbekendtga'relse Finanstilsynet har udstedt ny regnr.kabsbckcndtg0relse geeldende fra /Endrlnqerne pavirker kun i begreenset omfang pensionskassen. Bonuspolitik Penslonskassens bonuspolitik er rammebaseret og skal tllstraabe, at der er en stabil udvikling over tid i medlemmernes pensioner sa penslonerne sa vidt muligt bevarer deres k0bekraft. Nerved er der Ikke taget stilling til, at der skal ske en regulering hvert 3r, der sikrer k0bekraften, Det, der tilstr^bes er, at udviklingen af penslonerne sikres pa sigt. Ligeledes er det et udgangspunkt for bonuspolitikken, at krav om udvikling af penslonerne forudsaetter et rimeligt niveau af pensioner!, der skal reguleres, Saledes vil pensioner, der primcert er baseret pa en hoj rente og/eller forudsastninger om kortere levealder, Ikke n0dvendlgvis skulle reguleres med de nuvaerende renteforhold og aktuelle forudscetnlnger om levealder. Egenkapitalen I pensionskassen ejes af medlemmerne. Prlnclpperne for fordelltig af Srets resultat mellem pensionshenscettelserne og egenkapitalen er derfor ikke af neer samme betydning i on pensionskasse som i en livsforsikringsvirksomhed. Resultatet I en pensionskasse tilgar i sin helhed altid medlemmerne. Henscettelser til pensionsaftaler Hensasttelserne til pensionsaftaler er i 2016 foraget med 4.651,6 mio. kr. til ,5 mio. kr. Usikkerhed ved indregning og moling Ved udarbejdelsen af arsrapporten foretages en reekke sk0n og vurderinger om fremtidige forhold, som har Indflydelse pa den regnskabsmaessige va^rdi af aktiver og forpllgtelser. De vassentligste omrader omfatterde pensionsmtesslge forpllgtelser samt vcerdianscpttelse af unoterede alternative investerlnger og ejendomrne. Penslonskassen for Socialrldgivere, Socialpa'.dngoger og Koncorpersonale

44 8 Aisrapport 2016 Ledelsen vurderer, abde anvenrite foruds^tninger er forsvarlige men forbundet med en vis usikkerhed. Fnlsomhcdsoplysnlngcr for en riekke af de anvendte forudscetnlnger frerngar af note 18. Forventninger til fremliden I s^vel USA som Europa forventcs Vtekston og inflatlonen fort sat at stige moderat, samtldig med at arbejdsl0sheden vll falde. Stlgende Inflation vll give anledning til rnindre stramningcr af pengepolitlkkcn i bade USA og Europa. Politisk order dog en rakke beglvenheder, der kan give anledning til uro pi de finansicile markeder. For det forste er del endnu usikkert, hvilken politik den ny amerikanske regering vil fore. Dot geelder for bade udemigs- og handelspolitikkcn, samt den 0konomlsl<e politik, Gennemf0res eksempeivis bandelssanktioner mod Mexico og Kina, vll det medfriro cn lavere global vcekst. En stprre finanspolltlsk ekspanslon vil formentllg medfere 0get inflation, og dermed yderligere rentestigninger udover dem der i Bjeblikket er forventet i de amerikanske obligationsmarkedcr. Det vil have st0rst psvirkning pa de korte renter, mens de lange renter vll pavlrkes mindre. For det andet er der valg 1 Frankrig, Holland og Tyskland. I fwrste omgang er det valget i Frankrig i foraret, der tiltr<ekker sig opmasrksomhed i forhoid til det h0jreorienterede parti Front Nationales muligheder for at vinde prasidentpostcn. I alle de nzevnte lande er der dog mullghed for valg af mere nationallsllske partier, som, I tillceg til Brexlt, kan udfordre tu's sammenh^ngskraft, Pensionskassen er robust og star godt rustet i forhoid til disse udfordringcr. Haendelser efter balancedagen Der liar Ikke veeret beglvenheder efter statusdagen, som bar vausentlig indflydelse pa pensionskassens og konccrnens 0konomiske forhoid. Penslonskassen for Socialradoivere, Soticilpwdacjoger op Kontorpersoiicile

45 Arsrapport 2016 Ledelseshverv Oirektionons ledelseshverv ei- folgende: Administrerende dlrekt0r Peter Damgaard Jensen Adm. Dlrekt0r i PKA A/S Adm. Df'rekter I tre penslonskasser, dcr cr administreret af PKA Adm. Direktpr i pcnsionskassernes ejendomsaktleselskaber Bestyrelsesformand I PI<A+ Pension Forsikringsselskab A/S Bestyrclscsformand I A/S Kjabenhavns Ejendomsselskab Bestyrplsesformand i FotsUcdernes Ejendomsaldleselskab Bestyrelsesformand I PKA ATP A/S Bestyrelsesformand I Poppelstykket 12 A/S Bestyrelsesformand I PKA Skejby Komplcmentar ApS Bestyrelsesformand t PKA Skejby P/S Neestformand I Forca A/S Bestyrelscsmcdlcm I Forslkringsorganlsatlonernes FaHlessekretarlat F.M.B.A. Bestyrelsens ledelseshverv er f0lgende: Bestyrelsesformand Hans Ole Drost Bestyrelsesformand I SK Forsyning A/S Bestyrelsesformand I SK Splldevand A/S Bestyrelsesformand i SK Encrglsalg A/S Bestyrelsesformand I SK Gadelys A/S Bestyrelsesformand i SK Elnet A/S Bestyrelsesformand I SK Service A/S Bestyrelsesformand I SK Vand A/S Bestyrelsesformand I SK Varme A/S Bestyrelsesmedlem I Fonden Capnova Invest Zealand Bcstyrelsesmedlem i Den Erhvervsdrivende Fond Vseksthus Sjcelland Nfflstformahd Benny Arne Andersen Bestyrelsesmedlem i Penslonskassernes Administration A/S Bestyrelsesmedlem Bodll Marie Otto Bostyrclscsmedlcm i Penslonskassernes Administration A/S Bestyrelsesmedlem I Sampension KP Llvsforsikrlng A/S Bestyrelsesmedlem I Sampension Admlnistrationsselskab A/S Bestyrelsesmedlem i Forbrugsforeningen af 1886 Bestyrelsesmedlem I A/S Knudemosen Bestyrelsesmedlem Majbrit Beran Berlau Bestyrelsesmedlem I Fonden Frlstaden Christianla Bestyrelsesmedlem Susanne Kure Bestyrelsesmedlem I PKA+ Pension Forsikringsselskab A/S Bestyrelsesmedlem i Investeringsselskabet af 24. februar 2015 A/S Bestyrelsesmedlem 1 Genan Holding A/S Naastformand i Danmarks Forsknings- og Innovatlonspolltlske R2d Bestyrelsesmedlem Ulrlk Nodgaard Bestyrelsesmedlem i Fonden for Entrepreiwskab 0vrige medlemmor at" bestyrclsen liar ingen yderligere ledelseshverv. Pnnslonskassen for SodalrSdglvem, Snrlalpftddyocjer uy Koiitarpersoimle

46 10 Arsrapport 2016 LedelsespStegning Vi har dags dato hchandlet og godkendt Irsrapporten for regnskabsaret 1. januar -31. december 201G for Penslonskassen for SoctalradgivcrG, Soclalp^dagoger og Kontorpcrsonale. Arsrapporten aftegges i overensslemmelse med lov om finansiel vlrksomhed. Det cr vores opfattelsc, at koncernregnskabel og arsregnskabet giver et retvisende billede af koncernens og pensionskassens aktiver og passlver og finansielle stllflng pr. 31. december 2016 og resullalet af koncernens og pensionskassens aktiviteter for regnskabsaret 1. Januar -31. december Ledelsesberctningen Indeholder cfter vores opfattelse et retvisende billede for udvlkllngen I koncernens og pensionskassens aktiviteter og takonomiske forhold, arets resultater og koncernens og pensionskassens fi nansielle stilling samt^en beskrivelse af v^sentlige risicl og usikkerhedsfaktorer, som koncernen henholdsvls penslonskassen star over for. Arsrapporten indstilles til generalforsamllngens godkendelse. Hellemp, den 20. marts 2017 Dlrektionen: Hellemp, den 20. marts 2016 Bestyrelsen: Hans Qle Drost Formand Ncestformand Poul-Erik Svendsen Majbrit Be rati Berlau Clla Susanne Grove Andersen Bodil Marie Ottb^"- Karen Hovmand Molte Petersen Jette Sandal Illril/ Ulrik MfiifloaarH N0dgaard Susanne Kure Pensionskajwen for boclalrldgivere, Sodalp^edacjager og Kontorpcrsonale

47 Arsrapport 201G II Den uafhaengige revisors revisionspstegning Til medlemmerne I Pensioiiskassen for SocialrSdgivere, Socialp^dagoger og Kontorpersonale Konklusion VI har revlderet koncernregnskabet ocj Srsregnskabet for Pensionskassen for Socialradgivere, Socialpa^dagogcr og Kontorpersonale for rcgnskabsarct 1. januar -31. decernber 2016, der oinfatter resull,atopg0- relse og totallndkomslop^arelse, balance, egenkapllalopgarelse og noter, hemnder anvendt rcgnskabspraksls, for ssvel konccrnen som pensionskassen. Koncernregnskabet og arsregnskabet udarbejdes efter lov om finanslel vlrksomhed. Det er vores opfattelse, at koncernregnskabet og arsregnskabet giver et retvisende billede af koncernens og pensionskassens aktiver, passlver og finansielle stilling pr. 31. december 2016 samt af resultatet af koncernens og pensionskassens aktiviteter samt koncernens pengeslramme for regnskabsaret 1. januar december 2016 I overensslemtnelse med lov om finansiel virksomhed. Grundfag for konklusion VI har udferl vores revision i overensstemmelse med Internationale standarder om revision og de yderllgere krav, der er geeldende i Danmark. Vores ansvar Ifwlge dlsse standarder og krav er ticermere beskrevet I revislonspltegnlngens afsnlt 'Revlsors ansvar for revisionen af koncernregnskabet og arsregnskabet'. Vi er uafheengige af koncetnen i overensstemmelse med internationale etiske regler for revisorer (lesba's Ftiske regler) og de yderligere krav, der er gfeldende I Danmark, llgesom vl bar opfyldt vores etiske forpligtelser I henhold til dlsse regler og krav. Det er vores opfattelse, at det opnaede revisionsbevls er tilstr^ekkellgt og egnet som grundlag for vores konklusion. Ledelsens ansvar for koncernregnskabet og Arsregnskabet Lcdelsen har ansvaret for udarbejdelsen af et koncernregnskab og et Srsregnskab, der giver et retvisende billede I overensstemmelse med lov om finanslel virksomhed. Ledclscn har endvldere ansvaret for den Interne kontrol, som ledelsen anser for nodvendig for at udarbejde et koncernregnskab og et irsregnskab uden vcesentlig fejllnformatlon, uanset om denne skyldes besvlgelser eller fejl. Ved udarbejdelsen af koncernregnskabet og Irsregnskabet er ledelsen ansvarlig for at vurdere koncer nens og pensionskassens evne til at foitscette driften, at opl^se om forhold vedrwrende fortsat drift, hvor dette er relevant, samt at udarbejde koncernregnskabet og arsregnskabet pa grundlag af regnskabsprlnclppet om fortsat drift, medmindre ledelsen enten har til hensigt at likvidere pensionskassen, Indstllle driften eller ikke har andet realistisk alternativ end at gore dette. Revisors ansvar for revisionen af koncernregnskabet og Arsregnskabet Vores mal er at opna hoj grad af sikkerhed for, om koncernregnskabet og arsregnskabet som helhed er o uden v^sentllg fejllnformatlon, uanset om dette skyldes besvlgelser eller fejl/ogat afgive en revlslonspategnlng med en konklusion. H0j grad af sikkerhed er et hojt niveau af sikkerhed, men er Ikke en garanti for, at en revision, der udfores I overensstemmelse med Internationale standarder om revision og de yder ligere krav, der er gzeldende 1 Danmark, altid vil afdeekke vcesentlig fejllnformatlon, nsr ssdan flndes. Fcjl- Informatloner kan opsta som f0lgc af besvigelser eller fejl oy kail betragtes som Vcesentllge, hvis dot med rimelighcd kan forventes, at de enkeltvis eller samlet har indflydelse pi de 0konomiske beslutnlr>ger, som regnskabsbrugeme trreffer pi grundlag af koncernregnskabet og arsregnskabet. Som led I en revision, der udf0res I overensstemmelse med Internationale standarder om revision og de yderligere krav, der ergceldende I Danmark, foretager vl fagllge vurderinger og opretholder professlonel skepsis under revisionen. Herudover: Identlflcerer og vurderer vl rlsikoen for v csentlig fejllnformatlon I koncernregnskabet og Srsregnskabet, uanset om denne skyldes besvlgelser eller fejl, udformer og udferer revlslonshandllnger som reaktlon pa dissc risicl samt opnar revisionsbevls, der er tllstr^ckkeligt og egnet til at danne grundlag for vores konklusion. Rlsikoen for ikke at opdagc vccsentlig fejlinformation forarsaget af besvlgelser er hojere end ved Vcesentlig fejlinformation forarsaget af fejl, Idet besvlgelser kan opfatte sammensveergelser, dokumentfalsk, bevldste udeladelser, vlldlednlng eller tllsldescettelse af Intern kontrol. - Opnar vl forstaelse af den interne kontrol med relevans for revisionen for at kunne udforme revisionshandllnger, der or passende efter omstaendighederne, men ikke for at kunne udtrykke en konklusion om effektiviteten af koncernens og selskabets interne kontrol. Tager vl stilling til, om den rcgnskabspraksis, som er anvendt af ledelsen, er passende, samt om de regnskabsmeessige sk0n og tllknyttede oplysninger, som ledelse har udarbejdet er rimellge. Konkluderer vl, om ledelsens udarbejdelse af koncernregnskabet og arsregnskabet pa grundlag af regnskabsprinclppet om fortsat drift er passende, samt om der pa grundlag af det opnaede revisionsbevls er vcesentlig uslkkerhed forbundet med beglvenheder eller forhold, der kan skabe betydellg tvlvl om kon cernens og pensionskassens evne til at foitscette driften. Hvis vl konkluderer, at der er en veesentlig Pensionskassen tor Soda IrSd give re, Soclalpcedagoger ng Kontoi persona le