29. 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.

Provisions for employee benefit plans

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. Interests 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 curtailment or settlement has occurred during the year. As of the beginning of 2020, the pension solution of Precious Woods Holding Ltd. was transferred from the Bâloise Collective Foundation for Occupational Benefits to the AXA Occupational Benefits Foundation. The conversion rates for the new foundation are higher than before. This resulted in past service costs from plan change of EUR 144 174 and was recognized in P&L in 2020.

Changes in the present value of the defined benefit obligation

Movement in the fair value of the plan assets

Changes in net liability

Amounts recognized in profit or loss in respect of the defined benefit plan are as follows:

Amounts recognized in other comprehensive income in respect of the defined benefit plan are as follows:

Principal actuarial assumptions used

In 2021, the mortality table used did change from BVG 2015 GT to BVG 2020 GT. Also, the disability probability table and the exit probability table, did change from BVG tables 2015 to BVG tables 2020.

Sensitivity to changes in the principal assumptions

Plan asset allocation

Accounting policies

The Group has both defined benefit plans and defined contribution plans.

The obligation and costs of pension benefits are determined using the projected unit credit method. The projected unit credit method considers each period of service as giving rise to an additional unit of benefit entitlement and measures each unit separately to build up the final obligation. Past service costs, which comprise plan amendments and curtailments, as well as gains or losses on the settlement of pension benefits are recognized immediately when they occur. Remeasurements, which comprise actuarial gains and losses on the pension obligation, the return on plan assets and changes in the effect of the asset ceiling excluding amounts included in net interest, are recognized directly in other comprehensive income and are not reclassified to profit or loss in subsequent periods. The pension obligation is measured at the present value of estimated future cash flows using a discount rate that is determined by reference to the interest rate on government bonds where the currency and terms of the government bonds are consistent with the currency and estimated terms of the defined benefit obligation.