Menu

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
in thousand EUR   2021   2020
Current employee benefits - defined benefit plans   24  
Non-current employee benefits - defined benefit plans   1 652   1 899
Non-current employee benefits - defined contribution plans   1 218   1 107
Non-current employee benefits - jubilee provisions   82   84
Total liabilities due to employees   2 976   3 090

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
in thousand EUR   2021   2020
Defined benefit obligation at 1 January   5 486   4 593
Current service costs   249   376
Interest costs   8   12
Contribution by plan participants   91   86
Actuarial losses/(gains)   –170   33
Benefits paid/transferred   11   239
Past service costs     144
Currency effects   257   3
31 December   5 932   5 486
Plans wholly or partly funded   5 932   5 486
Plans wholly unfunded    
Movement in the fair value of the plan assets
in thousand EUR   2021   2020
Opening fair value of plan assets   3 587   2 717
Interest income   6   7
Return on plan assets excluding interest income   190   340
Contributions by the employers   212   200
Contributions by plan participants   91   86
Benefits paid/transferred   11   239
Currency effects   183   –2
31 December   4 280   3 587
in thousand EUR   2021   2020
Present value of obligations   5 932   5 486
Fair value of plan assets   4 280   3 587
Net liability   1 652   1 899
Changes in net liability
in thousand EUR   2021   2020
Opening net liability   1 899   1 876
Pension cost recognized in profit or loss   252   524
Pension cost recognized in other comprehensive income   –360   –306
Employer contributions   –212   –200
Currency effects   73   5
Recognized in balance sheet   1 652   1 899

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

in thousand EUR   2021   2020
Current service costs   249   376
Net interest costs   3   4
Past service costs     144
Recognized in profit or loss   252   524

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

in thousand EUR   2021   2020
Return of plan assets excluding interest income   190   340
Changes in assumptions   306   –165
Experience adjustments   –136   131
Recognized in other comprehensive income   360   306
Principal actuarial assumptions used
    2021   2020
Expected employer contributions   213 675   212 063
Discount rates   0.35%   0.15%
Expected salary increases   1.00%   1.00%
Expected long-term increase of pensions   0.00%   0.00%

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
in thousand EUR   DBO   Effect
Actuarial assumption 31 December 2021   5 932    
Discount rate +0.25%   5 687   –4.1%
Discount rate –0.25%   6 194   4.4%
Salary increase rate +0.25%   5 955   0.4%
Salary increase rate –0.25%   5 910   –0.4%
in thousand EUR   DBO   Effect
Actuarial assumption 31 December 2020   5 486    
Discount rate +0.5%   5 258   –4.2%
Discount rate –0.5%   5 730   4.4%
Salary increase rate +0.5%   5 510   0.4%
Salary increase rate –0.5%   5 463   –0.4%
Plan asset allocation
in thousand EUR   2021   2020
Liquidity   3.65%   2.75%
Bonds   31.70%   38.90%
Mortgages   3.87%   4.29%
Convertible loans   0.00%   0.00%
Shares   34.80%   30.20%
Real estate investments   23.14%   21.21%
Alternative investments   2.84%   2.65%
Total plan assets   100.00%   100.00%
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.