Annual Report 2011-2012

22. Employee retirement benefit plan

The Züblin Group has different pension schemes throughout the countries in which it operates. These schemes vary according to local laws and employment regulations. In all countries outside of Switzerland, the plans are defined contribution plans. In the past twelve months, expenditures totalling CHF 0.5 million (previous year CHF 0.4 million) for all defined contribution plans were recorded. In Switzerland, the pension plan of Züblin Immobilien Management AG has been designated as a defined benefit plan under IAS 19. The pension scheme is financed by employees' and employer's contributions.

The following amounts are based upon the Project Unit Credit Method:

in CHF thousand 31.3.2012 31.3.2011
     
Pension liabilities (present value) 3 057 2 721
Pension assets at market value 2 286 2 121
Pension liabilities (technical deficit) –771 –600

The above amount has been recorded under “Other non-current liabilities”.

The pension liabilities and assets changed as follows in the Züblin Group's consolidated balance sheet:

in CHF thousand 2011/2012 2010/2011
     
Pension liabilities (present value) at 1.4. 2 721 2 526
Actuarial pension expenses 165 147
Employees' contributions 104 74
Interest expenses 75 124
Paid coverage –99 –229
Accrued service cost –158 105
Actuarial (gains) and losses 249 –26
Pension liabilities (present value) at 31.3. 3 057 2 721
     
Pension assets at market value at 1.4. 2 121 2 048
Expected income on plan assets 55 52
Employer contributions 156 186
Employees' contributions 104 124
Paid coverage –99 –229
Actuarial losses –51 –60
Pension assets at market value at 31.3. 2 286 2 121
     
Effective pension income 5 –8

The following table details the cover of the defined benefit pension plan and the impact of adjustments in the expected or actual values of the pension liabilities and assets:

in CHF thousand 31.3.2012 31.3.2011 31.3.2010 31.3.2009 31.3.2008
           
Pension liabilities (present value) 3 057 2 721 2 526 2 125 1 951
Pension liabilities at market value 2 286 2 121 2 048 1 798 1 504
Deficient cover 771 600 478 327 447
           
Adjustments of pension liabilities by experience 17 143 159 296 –26
Adjustments of pension assets by experience –51 –60 –105 –99 –53
Total actuarial gains and losses –34 83 54 198 –78
           
Expected contribution in the coming year 159 173      
           
Penison expense is comprised of the following items:          
– Current service cost 164 147      
– Interest expense 75 74      
– Expected return on plan assets –55 –52      
– Accrued service cost –158 105      
Pension expenses 26 274      
           
In the summary of recognized income and expense the following pension income and expenses were recorded directly:          
Actuarial (gains) and losses 300 34      
Cumulative actuarial (gains) and losses recorded as pension income and expense 351 51      

The calculation of the Group's pension liabilities is based on the following assumptions:

  31.3.2012 31.3.2011
     
Discount rate 2.25% 2.75%
Expected return on pension assets 2.50% 2.50%
Expected future salary increases 2.00% 2.00%
Expected future pension increases 0.00% 0.00%
Life expectancy in years at age of retirement (man/woman) BVG 2010 GT BVG 2005

Asset allocation: 100% of the assets are managed and invested by a reinsurance company. Furthermore, the Company has insured a minimum return on its pension assets. Therefore, a detailed asset allocation is not presented.

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Annual Report 2011-2012

Annual Report 2011-2012 (8.16 MB)