5.10 Pension liabilities
The Züblin Group has a defined benefit plan according to IAS 19 in Switzerland. In the past twelve months, expenditures of kCHF 76 (previous year: kCHF 124) were recorded for the defined benefit plan.
Swiss pension schemes are governed by the Swiss Federal Law on Occupational Retirement, Survivors’ and Disability Pension Plans (BVG). The pension plan is financed by contributions from both employer and employees. The BVG requires pension schemes to be run as legally independent institutions. The pension scheme is headed by a board of trustees composed of an equal number of employer and employee representatives. It is responsible for determining and implementing the investment strategy.
The following amounts are based upon the “Project Unit Credit”-method:
in CHF thousands |
|
31.3.2023 |
|
31.3.2022 |
|
|
|
|
|
Pension liabilities (present value) |
|
1 076 |
|
1 028 |
Pension assets at market value |
|
964 |
|
927 |
Pension liabilities (technical deficit) |
|
–112 |
|
–101 |
The above amount is shown in the balance sheet under “Pension liabilities”.
Pension liabilities and assets changed as follows in the Züblin Group’s consolidated balance sheet:
in CHF thousands |
|
2022/23 |
|
2021/22 |
|
|
|
|
|
Pension liabilities (present value) at 1.4. |
|
1 028 |
|
981 |
Current service costs |
|
75 |
|
124 |
Employees' contributions |
|
45 |
|
53 |
Interest expenses |
|
14 |
|
5 |
Benefits (paid) / deposited |
|
–6 |
|
–12 |
Actuarial gains/losses |
|
–80 |
|
–123 |
Pension liabilities (present value) at 31.3. |
|
1 076 |
|
1 028 |
|
|
|
|
|
Pension assets at market value at 1.4. |
|
927 |
|
770 |
Income on plan assets |
|
13 |
|
4 |
Employer contributions |
|
67 |
|
79 |
Employees' contributions |
|
45 |
|
53 |
Benefits (paid) / deposited |
|
–6 |
|
–12 |
Actuarial gains/losses |
|
–82 |
|
33 |
Pension assets at market value at 31.3. |
|
964 |
|
927 |
Break down of pension expenses:
in CHF thousands |
|
31.3.2023 |
|
31.3.2022 |
|
|
|
|
|
Expected contribution in the coming year |
|
67 |
|
67 |
|
|
|
|
|
Penison expense in the current period is comprised of the following items: |
|
|
|
|
– Current service cost |
|
75 |
|
124 |
– Interest expense |
|
1 |
|
1 |
Pension expenses |
|
76 |
|
125 |
The weighted average duration of the defined benefit plans is 13.7 years (previous year: 14.7 years).
The remeasurement of the net pension obligation reported in other comprehensive income breaks down as follows:
in CHF thousands |
|
31.3.2023 |
|
31.3.2022 |
|
|
|
|
|
Actuarial gains (+)/losses on plan assets (-) |
|
–82 |
|
33 |
Effects from changes in financial assumptions |
|
81 |
|
111 |
Effects from changes in demographic assumptions |
|
0 |
|
0 |
Effects from experience adjustments |
|
–1 |
|
11 |
Actuarial gains (+) /losses on pension liabilities (-) |
|
80 |
|
122 |
Defined Benefit Cost recognised in OCI |
|
–2 |
|
155 |
The calculation of the Group’s pension liabilities is based on the following assumptions:
|
|
31.3.2023 |
|
31.3.2022 |
|
|
|
|
|
Discount rate |
|
2.10% |
|
1.30% |
Expected return on pension assets |
|
2.10% |
|
1.30% |
Expected future salary increases |
|
1.00% |
|
1.00% |
Expected future pension increases |
|
0.00% |
|
0.00% |
Life expectancy in years at age of retirement (man/woman) |
|
BVG 2020 GT |
|
BVG 2020 GT |
A sensitivity analysis was carried out using constant assumptions for the most important assumptions used to calculate the pension liabilities.
in CHF thousands |
|
31.3.2023 |
|
31.3.2022 |
|
|
|
|
|
Pension liabilities (present value) at 31.3. |
|
1 076 |
|
1 027 |
– Discount rate -0.25% |
|
1 112 |
|
1 066 |
– Discount rate +0.25% |
|
1 040 |
|
991 |
– Expected salary increases -0.25% |
|
1 071 |
|
1 025 |
– Expected salary increases +0.25% |
|
1 079 |
|
1 032 |
– Life expectancy in years - 1 year |
|
1 063 |
|
1 014 |
– Life expectancy in years + 1 year |
|
1 088 |
|
1 041 |
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.