Notes to the Consolidated Financial Statements
(Thousands of US dollars)
70
Dar Al-Maal Al-Islami Trust
Annual Report 2013
34. Retirement benefit plans
(continued)
The movement in the liability recognised in the statement of financial position:
2013
2012
Restated
At 1 January
13,382
9,878
Defined benefit cost included in P&L
(2,591)
2,465
Total remeasurements included in OCI
(7,511)
2,262
Employer contributions
(1,698)
(1,521)
Exchange differences
214
298
At 31 December
1,796
13,382
Plan assets are comprised as follows:
2013
2012
Restated
Quoted Unquoted Total
% Quoted Unquoted Total
%
Assets held by
insurance company
-
37,041 37,041
67
-
36,056 36,056
70
Property in
Switzerland
-
14,377 14,377
26
-
14,208 14,208
27
Cash and cash
equivalents
4,016
-
4,016
7 1,338
-
1,338
3
Total
4,016 51,418 55,434
100 1,338 50,264 51,602
100
Pension assets include Swiss real estate partially occupied by the Group with a
fair value of $14.4 million (2012: $14.2 million).
Through its defined benefit pension plan in Switzerland, the Group is exposed
to few risks, the most significant of which are detailed below:
The Group operates a contribution based plan with guarantees in order to satisfy
Swiss legislation on occupational pension provision. It uses several insurance
policies to reduce the financial risks involved. Death and disability benefits are
insured. The insurance policy currently guarantees interest credits on member
savings which are at least equal to those required under Swiss law. Pensions
at retirement are insured to remove longevity and investment risk following
retirement. The Group currently only incurs additional costs where it awards
interest credits and/or converts savings to pension at rates more favourable than
offered by the insurance provider.
The plan invested in offices partially occupied by the Group. This is the plan’s
primary investment risk and requires it to be set up as a semi-autonomous
foundation with trustees. There are three trustees representing the companies
and three trustees representing the employees as per the regulations of the
Pension Foundation. Collectively they are responsible for ensuring compliance
with Swiss occupational pension legislation and the rules of the plan. This
includes the administration, arranging for the drafting of accounts and their
audit, setting the investment strategy and communicating with members.
