18. Employee benefits
The employee benefit plans of the Group are based on legal requirements in the respective countries. Beyond these regulatory requirements, the Group provides meals, housing, education and access to medical care according to the local operating group’s policy.
The Group’s contribution to defined contribution plans was reduced by EUR 69 648 in 2017 (2016: increase of EUR 136 920).
The pension plan for employees in Switzerland is a defined benefit plan and covers the risks of age, death and disability. Financing occurs by means of employer and employee contributions, defined in the pension fund rules in terms of an age related sliding scale of percentages of salary, as well as returns from the investments made by the pension fund. The pension fund guarantees the vested benefit amount as confirmed annually to members, as regulated by Swiss law. Interest may be added to member balances at the discretion of the Board of Trustees. At retirement date, members have the right to take their retirement benefit as a lump sum or as an annuity.
No material plan amendment, curtailment or settlement has occurred during the year.
Changes in the present value of the defined benefit obligation
| in thousand EUR | 2017 | 2016 | ||
|---|---|---|---|---|
| Defined benefit obligation at 1 January | 2 908 | 2 649 | ||
| Current service costs | 284 | 291 | ||
| Interest costs | 20 | 24 | ||
| Contribution by plan participants | 84 | 75 | ||
| Actuarial losses/(gains) | –60 | –156 | ||
| Benefits paid/transferred | 6 | –5 | ||
| Exchange differences | –259 | 30 | ||
| 31 December | 2 983 | 2 908 | ||
| Plans wholly or partly funded | 2 983 | 2 908 | ||
| Plans wholly unfunded | – | – | ||
Movement in the fair value of the plan assets
| in thousand EUR | 2017 | 2016 | ||
|---|---|---|---|---|
| Opening fair value of plan assets | 1 715 | 1 478 | ||
| Interest income | 12 | 14 | ||
| Return on plan assets excluding interest income | –40 | 2 | ||
| Contributions by the employers | 148 | 133 | ||
| Contributions by plan participants | 84 | 75 | ||
| Benefits paid/transferred | 6 | –5 | ||
| Exchange differences | –153 | 18 | ||
| 31 December | 1 772 | 1 715 |
| in thousand EUR | 2017 | 2016 | ||
|---|---|---|---|---|
| Present value of obligations | 2 983 | 2 908 | ||
| Fair value of plan assets | 1 772 | 1 715 | ||
| Net liability | 1 211 | 1 193 |
Changes in net liability
| in thousand EUR | 2017 | 2016 | ||
|---|---|---|---|---|
| Opening net liability | 1 193 | 1 171 | ||
| Pension cost recognized in profit or loss | 292 | 301 | ||
| Pension cost recognized in other comprehensive income | –20 | –158 | ||
| Employer contributions | –148 | –133 | ||
| Exchange differences | –106 | 12 | ||
| Recognized in profit or loss | 1 211 | 1 193 |
Amounts recognized in profit or loss in respect of the defined benefit plan are as follows:
| in thousand EUR | 2017 | 2016 | ||
|---|---|---|---|---|
| Current service costs | 284 | 291 | ||
| Net interest costs | 8 | 10 | ||
| Recognized in profit or loss | 292 | 301 |
Amounts recognized in other comprehensive income in respect of the defined benefit plan are as follows:
| in thousand EUR | 2017 | 2016 | ||
|---|---|---|---|---|
| Return of plan assets excluding interest income | –40 | 2 | ||
| Changes in demographic assumptions | – | – | ||
| Changes in financial assumptions | – | 4 | ||
| Experience adjustments | 60 | 152 | ||
| Recognized in other comprehensive income | 20 | 158 |
The assets are invested in a multi-employer plan and are therefore mixed. Thus, it is not possible to disclose the asset allocation as requested in IAS 19.
Principal actuarial assumptions used
| 2017 | 2016 | |||
|---|---|---|---|---|
| Expected employer contributions in CHF | 167 000 | 146 000 | ||
| Discount rates | 0.70% | 0.70% | ||
| Expected salary increases | 1.00% | 1.00% | ||
| Expected long-term increase of pensions | 0.00% | 0.00% |
Sensitivity to changes in the principal assumptions
| in thousand EUR | DBO | Effect | ||
|---|---|---|---|---|
| Actual assumption 31 December 2017 | 2 983 | |||
| Discount rate +0.5% | 2 704 | –9.50% | ||
| Discount rate –0.5% | 3 305 | 11.00% | ||
| Salary increase rate +0.5% | 3 019 | 1.30% | ||
| Salary increase rate –0.5% | 2 949 | –1.30% |
Number of insured persons
| in thousand EUR | 2017 | 2016 | ||
|---|---|---|---|---|
| Number of insured persons | 13.0 | 13.0 | ||
| Number of insured retired persons | – | – | ||
| Average weighted duration in years | 16.7 | 20.0 |