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.