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Pensions and other post-employment benefits
 12 Months Ended
Dec. 31, 2024
Disclosure of defined benefit plans [abstract]  
Pensions and other post-employment benefits 3.4. Pensions and other post-employment benefits
Accounting policies
Nokia has various post-employment plans in accordance with the local conditions and
practices in the countries in which it operates. Nokia’s defined benefit plans comprise
pension schemes as well as other benefit plans providing post-employment healthcare and
life insurance coverage to certain employee groups. Defined benefit plans expose Nokia to
various risks such as investment risk, interest rate risk, life expectancy risk, and regulatory/
compliance risk. The characteristics and extent of these risks vary depending on the legal,
fiscal and economic requirements in each country as well as the impact of global events.
The plans are generally funded through payments to insurance companies or contributions
to trustee-administered funds as determined by periodic actuarial calculations.
The costs of defined benefit plans are assessed using the projected unit credit method.
The defined benefit obligation is measured as the present value of the estimated future
cash outflows using interest rates on high-quality corporate bonds or government bonds
with maturities most closely matching expected payouts of benefits. The plan assets
are measured at fair value at the reporting date. The liability or asset recognized in the
statement of financial position is the present value of the defined benefit obligation at the
reporting date less the fair value of plan assets adjusted for effects of any asset ceiling.
Actuarial valuations for defined benefit plans are performed annually or when a material
plan amendment, curtailment or settlement occurs. Service cost related to employees’
service in the current period and past service cost resulting from plan amendments and
curtailments, as well as gains and losses on settlements, are presented in cost of sales,
research and development expenses or selling, general and administrative expenses. Net
interest as well as pension plan administration costs not considered in determining the
return on plan assets, are presented in financial income and expenses. Remeasurements,
comprising actuarial gains and losses, the effect of the asset ceiling and the return
on plan assets, excluding amounts recognized in net interest, are recognized in other
comprehensive income. Remeasurements are not reclassified to profit or loss in
subsequent periods.
In a defined contribution plan, Nokia’s legal or constructive obligation is limited to the
amount that it agrees to contribute to the plan. Nokia’s contributions to defined
contribution plans, multi-employer and insured plans are recognized in the income
statement in the period to which the contributions relate. If a pension plan is funded
through an insurance contract where Nokia does not retain any legal or constructive
obligations, the plan is treated as a defined contribution plan. All arrangements that
do not fulfill these conditions are considered defined benefit plans.
Defined benefit plans
Nokia’s most significant defined benefit plans are in the United States, Germany, and the
United Kingdom. Together, they account for 92% of Nokia’s total defined benefit obligation
(93% in 2023) and 91% of Nokia’s total fair value of plan assets (91% in 2023).
Summary of defined benefit balances at 31 December
EURm
Defined
benefit
obligation
Fair value of
 plan assets 
Effects of
asset ceiling
Net defined
benefit
balance
2024
United States, Pension
(10 688)
16 188
—
5 500
United States, OPEB
(1 393)
701
—
(692)
Germany
(1 959)
1 240
—
(719)
United Kingdom
(529)
736
—
207
Other
(1 220)
1 858
(85)
553
Total
(15 789)
20 723
(85)
4 849
2023
United States, Pension
(11 325)
16 285
—
4 960
United States, OPEB
(1 471)
675
—
(796)
Germany
(2 037)
1 199
—
(838)
United Kingdom
(782)
957
—
175
Other
(1 253)
1 798
(87)
458
Total
(16 868)
20 914
(87)
3 959
Funded status of defined benefit obligation:
EURm
2024
2023
Wholly funded
12 665
12 782
Partly funded
2 252
3 149
Unfunded
872
937
Total
15 789
16 868
United States
Nokia has significant defined benefit pension plans and a significant post-employment welfare
benefit plan (OPEB) providing post-employment healthcare benefits and life insurance coverage
in the United States.
Defined Benefit Pension Plans
The defined benefit pension plans include both traditional service-based programs and cash-
balance plans. Salaried, non-union-represented employees are covered by a cash-balance
program. All other legacy programs, including legacy service-based programs, were frozen by
31 December 2009. For former employees who, when actively employed, were represented
by a union, Nokia maintained two defined benefit pension plans, both of which are traditional
service-based programs. On 31 December 2021, these two plans were merged.
Other Post-Employment Benefit Plan
The other post-employment benefit plan provides welfare benefits for certain retired former
employees. Pursuant to an agreement with the Communications Workers of America (CWA) and
the International Brotherhood of Electrical Workers (IBEW) unions, Nokia provides post-employment
healthcare benefits and life insurance coverage for employees formerly represented by these
two unions. That agreement was renewed in 2020, and the contract expires on 31 December
2027.
On 1 October 2024, Nokia transferred investment management operations for US Pension,
OPEB and 401(k) assets to Mercer in an Outsourced Investment Management (OCIO) transaction.
Germany
Nokia maintains two primary plans in Germany which cover the majority of active employees:
the cash-balance plan Beitragsorientierter Altersversorgungs Plan (BAP) for the Group’s Nokia
employees and a similar cash-balance program (AVK Basis-/Matchingkonto) for the Group’s
former Alcatel-Lucent employees. Individual benefits are generally dependent on eligible
compensation levels, ranking within the Group and years of service. These plans are partially
funded defined benefit pension plans, the benefits being subject to a minimum return
guaranteed by the Group. The funding vehicle for the BAP is the NSN Pension Trust e.V.
The trust is legally separate from the Group and manages the plan assets in accordance with
the respective trust agreements.
All other plans have been frozen or closed in prior years and replaced by the cash-balance plans.
Benefits are paid in annual installments, as monthly retirement pension, or as a lump sum on
retirement in an amount equal to accrued pensions and guaranteed interest.
United Kingdom
Nokia maintains one primary plan in the UK, “Nokia Retirement Plan for former NSN & ALU
employees”, which is the result of the 2019 merger of the legacy Nokia plan where the plan
was merged and members’ benefits were transferred to the legacy Alcatel-Lucent plan. The
combined plan consists of both money purchase sections with Guaranteed Minimum Pension
(GMP) underpin and final salary sections. All final salary sections are closed to future benefit
accrual: the legacy Nokia plan closed on 30 April 2012 and the legacy Alcatel-Lucent plan
on 30 April 2018. Individual benefits for final salary sections are dependent on eligible
compensation levels and years of service. For the money purchase sections with GMP underpin,
individual benefits are dependent on the greater of the value of GMP at retirement date and
the pension value resulting from the individual’s invested funds. Nokia engages the services of
an external trustee service provider to manage all investments for the combined pension plan.
During 2024, Nokia completed a risk transfer buy-out in the amount of EUR 178 million, with
insurer Aviva, for certain beneficiaries whose liability was covered by an existing insurance
agreement.
With regard to the implications of the ruling by the High Court in June 2023, and the dismissal
of appeal by the Court of Appeal in July 2024, in the case of Virgin Media Limited v NTL Pension
Trustees II Ltd, Nokia’s UK Pension Trustee will be undertaking an investigation pending further
developments of this case in the courts expected in early 2025. As at 31 December 2024,
management has not identified any benefit uncertainties for which the potential impact would
need to be considered.
Movements in the defined benefit obligation, fair value of plan assets and the impact of the asset ceiling limitation for the years ended 31 December
Defined benefit obligation
2024
2023
EURm
United States
pension
United States
OPEB
Other pension
Total
United States
pension
United States
OPEB
Other pension
Total
1 January
(11 325)
(1 471)
(4 072)
(16 868)
(12 340)
(1 615)
(4 357)
(18 312)
Current service cost
(86)
—
(62)
(148)
(83)
—
(74)
(157)
Interest expense
(509)
(67)
(142)
(718)
(563)
(73)
(173)
(809)
Past service cost
(12)
—
7
(5)
(9)
—
3
(6)
Settlements(1)
—
—
178
178
—
—
501
501
Total
(607)
(67)
(19)
(693)
(655)
(73)
257
(471)
Remeasurements:
  
  
Gain/(loss) from change in demographic assumptions
114
17
32
163
66
1
(12)
55
Gain/(loss) from change in financial assumptions
463
62
88
613
(114)
(26)
(161)
(301)
Experience gain/(loss)
94
27
(13)
108
(43)
28
(11)
(26)
Total
671
106
107
884
(91)
3
(184)
(272)
Translation differences
(664)
(87)
(32)
(783)
431
57
(12)
476
Contributions from plan participants
—
(76)
(4)
(80)
—
(60)
(24)
(84)
Benefits paid
1 237
212
272
1 721
1 330
229
249
1 808
Other(2)
—
(10)
40
30
—
(12)
(1)
(13)
Total
573
39
276
888
1 761
214
212
2 187
31 December
(10 688)
(1 393)
(3 708)
(15 789)
(11 325)
(1 471)
(4 072)
(16 868)
Weighted average duration of the defined benefit obligation (in years)
9.1
10.3
10.1
9.5
7.7
8.8
10.6
8.5
(1)In 2024, the settlement relates to the transfer of a liability in the amount of EUR 178 million to insurer Aviva as part of a buy-out transaction in the UK. In 2023, the settlement related to the transfer of liabilities from formerly Nokia managed Provident Fund to Indian
government managed Provident Fund platform (EPFO).
(2)Includes divestment related transfers.
Fair value of plan assets
2024
2023
EURm
United States
pension
United States
OPEB
Other pension
Total
United States
pension
United States
OPEB
Other pension
Total
1 January
16 285
675
3 954
20 914
17 726
637
4 328
22 691
Interest income
755
30
133
918
820
28
171
1 019
Administrative expenses and interest on asset ceiling
(18)
—
(5)
(23)
(17)
—
(4)
(21)
Settlements(1)
—
—
(183)
(183)
—
—
(494)
(494)
Total
737
30
(55)
712
803
28
(327)
504
Remeasurements:
  
  
  
  
  
Return on plan assets, excluding amounts included in interest income
(576)
50
44
(482)
(186)
62
48
(76)
Total
(576)
50
44
(482)
(186)
62
48
(76)
Translation differences
990
41
41
1 072
(624)
(21)
28
(617)
Contributions:
Employers
27
3
25
55
27
7
41
75
Plan participants
—
76
4
80
—
60
24
84
Benefits paid
(1 237)
(212)
(179)
(1 628)
(1 330)
(229)
(181)
(1 740)
Section 420 transfer(2)
(38)
38
—
—
(131)
131
—
—
Other
—
—
—
—
—
—
(7)
(7)
Total
(258)
(54)
(109)
(421)
(2 058)
(52)
(95)
(2 205)
31 December 
16 188
701
3 834
20 723
16 285
675
3 954
20 914
(1)In 2024, the settlement primarily relates to transfer of assets in the amount of EUR 178 million to insurer Aviva as part of a buy-out transaction in the UK. In 2023, the settlement relates to the transfer of assets from formerly Nokia managed Provident Fund to Indian
government managed Provident Fund platform (EPFO).
(2)Refer to the Future cash flows section below for description of Section 420 transfers.
The impact of the asset ceiling limitation
2024
2023
EURm
United States
pension
United States
OPEB
Other pension
Total
United States
pension
United States
OPEB
Other pension
Total
1 January
—
—
(87)
(87)
—
—
(84)
(84)
Interest expense
—
—
(1)
(1)
—
—
(2)
(2)
Remeasurements:
Change in asset ceiling, excluding amounts included in interest expense
—
—
6
6
—
—
5
5
Translation differences
—
—
(3)
(3)
—
—
(6)
(6)
31 December 
—
—
(85)
(85)
—
—
(87)
(87)
Net balances
2024
2023
EURm
United States
pension
United States
OPEB
Other pension
Total
United States
pension
United States
OPEB
Other pension
Total
31 December
5 500
(692)
41
4 849
4 960
(796)
(205)
3 959
Consisting of:
Net pension assets
5 749
—
1 183
6 932
5 217
—
1 041
6 258
Net pension liabilities
(249)
(692)
(1 142)
(2 083)
(257)
(796)
(1 246)
(2 299)
Recognized in the income statement(1)
EURm
2024
2023
2022
Current service cost(2)
148
157
205
Past service cost(2)
5
6
(2)
Net interest(3)
(176)
(187)
(92)
Settlements(2)
5
(7)
(10)
Total
(18)
(31)
101
(1)Includes amounts related to both continuing and discontinued operations.
(2)Amounts related to continuing operations are presented in operating expenses within the income statement.
(3)Amounts related to continuing operations are presented in financial income within the income statement.
Recognized in other comprehensive income
EURm
2024
2023
2022
Return on plan assets, excluding amounts included in interest income
(482)
(76)
(4 646)
Gain/(loss) from change in demographic assumptions
163
55
(4)
(Loss)/gain from change in financial assumptions
613
(301)
4 534
Experience (loss)/gain
108
(26)
(320)
Change in asset ceiling, excluding amounts included in interest expense
6
5
12
Total
408
(343)
(424)
Actuarial assumptions and sensitivity analysis
Actuarial assumptions
The discount rates and mortality tables used for the significant plans:
Discount rate
Mortality table
2024
2023
2024
United States(1)
5.3%
4.7%
Pri-2012 w/MP-2020
Mortality projection scale
Germany
3.4%
3.2%
Heubeck 2018G
United Kingdom(2)
5.6%
4.5%
CMI 2023
Total weighted average for all countries
4.9%
4.4%
  
(1)Mortality tables remain unchanged in the US. 2024 mortality assumption includes an adjustment based upon actual experience.
(2)Mortality tables have been updated from CMI 2021 in 2023 to CMI 2023 for United Kingdom and have been adjusted with 1.5%
long-term rate of improvement.
Assumptions regarding future mortality are set based on actuarial advice in accordance with
published statistics and experience in each country.
The principal actuarial weighted average assumptions used for determining the defined benefit
obligation and sensitivity of the defined benefit obligation to changes in these assumptions:
2024
2023
Change in
assumption
Increase in
assumption(1)
EURm
Decrease in
assumption(1)
EURm
Discount rate for determining
present values
4.9%
4.4%
1.0%
1 162
(1 358)
Pension growth rate
2.1%
3.3%
1.0%
(226)
175
Inflation rate
2.0%
2.3%
1.0%
(249)
219
Life expectancy
86-88 yrs
87-88 yrs
1 year
(589)
559
(1)Positive movement indicates a reduction in the defined benefit obligation; a negative movement indicates an increase in the
defined benefit obligation.
Sensitivity analysis
When calculating the sensitivity of the defined benefit obligation to significant actuarial
assumptions, the present value of the defined benefit obligation is calculated using the
projected unit credit method. The sensitivity analyses are based on a change in an assumption
while holding all other assumptions constant and may not be representative of the actual impact
of changes. If more than one assumption is changed simultaneously, the combined impact
of changes would not necessarily be the same as the sum of the individual changes. If the
assumptions change to a different level compared with that presented, the effect on the defined
benefit obligation may not be linear. Increases and decreases in the principal assumptions, which
are used in determining the defined benefit obligation, do not have a symmetrical effect on
the defined benefit obligation primarily due to the compound interest effect created when
determining the net present value of the future benefit.
Key source of estimation uncertainty
The determination of pension and other post-employment benefit obligations and
expenses for defined benefit plans is dependent on a number of estimates and
assumptions, including the discount rate, future mortality rate, annual rate of increase
in future compensation levels, and healthcare costs trend rates and usage of services
in the United States where the majority of our post-employment healthcare plans are
maintained. Changes in assumptions and actuarial estimates may materially affect the
benefit obligation, future expense and future cash flow.
Investment strategies
The overall pension investment objective of Nokia is to
preserve or enhance the defined benefit pension plans’ funded
status through the implementation of an investment strategy
that maximizes return within the context of minimizing funded
status risk. In formulating the asset allocation for the plans,
multiple factors are considered, including, but not limited to,
the long-term risk and return expectations for a variety of
asset classes as well as current and multi-year projections
of the defined benefit pension plans’ demographics, benefit
payments, contributions and funded status. Local trustee
boards are responsible for conducting Asset-Liability
Management (ALM) studies, when appropriate; overseeing the
investment of plan assets; and monitoring and managing
associated risks under company oversight and in accordance
with local law. The results of the ALM framework are
implemented on a plan level.
Nokia’s pension investment managers may use derivative
financial instruments including futures contracts, forward
contracts, options and interest rate swaps to manage market
risk. The performance and risk profile of investments is
regularly monitored on a standalone basis as well as in the
broader portfolio context. One risk is a decline in the plan’s
funded status as a result of the adverse performance of plan
assets and/or defined benefit obligations. The application
of the ALM study focuses on minimizing such risks.
United States plan assets
The majority of Nokia’s United States pension plan assets are
held in a master pension trust. The OPEB plan assets are held
in two separate trusts. The Pension & Benefits Investment
Committee formally approves the target asset allocation
following the proposal by Nokia’s OCIO provider. The overall
United States pension plan asset portfolio, at 31 December
2024, reflects a balance of investments split of approximately
20/80 between equity, including alternative investments for
this purpose, and fixed income securities.
Disaggregation of plan assets(1)
2024
2023
EURm
Quoted 
Unquoted
Total
% of total
assets
Quoted 
Unquoted
Total
% of total
assets
Equity securities
1 055
—
1 055
5%
1 249
—
1 249
6%
Fixed income securities
14 721
142
14 863
72%
14 750
140
14 890
71%
Insurance contracts
—
648
648
3%
—
807
807
4%
Real estate
—
860
860
4%
—
1 010
1 010
5%
Short-term investments
945
—
945
5%
689
—
689
3%
Private equity and other
103
2 249
2 352
11%
106
2 163
2 269
11%
Total
16 824
3 899
20 723
100%
16 794
4 120
20 914
100%
(1)Beginning in 2024, Nokia reports temporarily held cash positions associated with different asset classes as part of those asset classes. Previously these cash positions were
included in short-term investments. Comparative asset balances have been recast accordingly.
Most short-term investments including cash, equities and fixed-income securities have quoted market prices in active markets.
Equity securities represent investments in equity funds and direct investments, which have quoted market prices in an active
market. Fixed income securities represent direct investments in government and corporate bonds, as well as investments in
bond funds, which have quoted market prices in an active market. Insurance contracts are customary pension insurance
contracts structured under domestic law in the respective countries. Real estate investments are investments in commercial
properties or real estate funds, which invest in a diverse range of real estate properties. Private equity and other investments
include investments in private equity limited partnerships and absolute return investments in hedge funds.
Short-term investments are liquid assets or cash, which are being held for a short period of time, with the primary purpose of
controlling the tactical asset allocation. Private equity net asset values (NAVs) are determined by the asset managers based on
inputs such as operating results, discounted future cash flows and market-based comparable data. Assets invested in alternative
asset classes such as private equity, real estate and absolute return are measured using latest available valuations provided by
the asset managers, reviewed by Nokia and adjusted for subsequent cash flows.
Future cash flows
Contributions
Group contributions to the pension and other post-employment benefit plans are made to
facilitate future benefit payments to plan participants. The funding policy is to meet minimum
funding requirements as set forth in the employee benefit and tax laws, as well as any such
additional amounts as Nokia may determine appropriate. Contributions are made to benefit
plans for the sole benefit of plan participants. Employer contributions expected to be paid in
2025 total EUR 55 million.
United States
Funding methods
Funding requirements for the two United States qualified defined benefit pension plans are
determined by the applicable statutes, namely the Employee Retirement Income Security Act of
1974 (ERISA), the Internal Revenue Code of 1986, and regulations issued by the Internal Revenue
Service (IRS). In determining funding requirements, ERISA allows assets to be either fair value
or an average value over a period of time; and liabilities to be based on spot interest rates or
average interest rates over a period of time. For the non-represented and formerly represented
defined benefit pension plans, Nokia does not foresee any future funding requirement for
regulatory funding purposes, given the plans’ asset allocation and the level of assets compared
to liabilities.
Post-employment healthcare benefits for both non-represented and formerly union
represented retirees are capped for those who retired after 28 February 1990. The benefit
obligation associated with this group of retirees is 99% of the total United States retiree
healthcare obligation at 31 December 2024. The US government’s Medicare program is the
primary payer for those aged 65 and older.
Section 420 transfers
Section 420 of the U.S. Internal Revenue Code (Section 420) allows for the transfer of pension
assets in excess of specified thresholds above the plan’s funding obligation (excess pension
assets) to a retiree health benefits account, a retiree life insurance account, or both, maintained
within the pension plan and to use the assets in such accounts to pay for, or to reimburse the
employer for the cost of providing applicable health or life insurance benefits, each as defined
in Section 420, for retired employees, and with respect to health benefits, their spouses and
dependents. Employers making such transfers are required to continue to provide healthcare
benefits or life insurance coverage, as the case may be, for a certain period of time (cost
maintenance period) at levels prescribed by regulations. Pursuant to Section 420, Nokia has
transferred EUR 38 million during 2024 (EUR 131 million in 2023). Section 420 is currently set to
expire on 31 December 2032.
Benefit payments
The following table summarizes expected benefit payments from the defined benefit pension
plans and other post-employment benefit plans until 2034. Actual benefit payments may differ
from expected benefit payments.
US Pension
US OPEB
Other
countries
Total
EURm
Management
Occupational
Supplemental
plans
Formerly union
represented 
Non-union
represented
2025
1 053
214
27
60
61
261
1 676
2026
983
198
26
53
62
241
1 563
2027
919
184
25
49
62
240
1 479
2028
861
170
24
79
62
244
1 440
2029
810
157
23
72
63
269
1 394
2030–2034
3 343
609
101
273
309
1 346
5 981
Benefits are paid from plan assets where there is sufficient funding available to the plan to cover
the benefit obligation. Any payments in excess of the plan assets are paid directly by Nokia.
Direct benefit payments expected to be paid in 2025 total EUR 108 million.