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Notes to the Consolidated Financial Statements
(Thousands of US dollars)
74
Dar Al-Maal Al-Islami Trust
Annual Report 2014
35. Retirement benefit plans
(continued)
The significant actuarial assumptions were as follows:
2014
2013
Discount rate
0.9%
2.2%
Inflation
0.0%
0.0%
Salary growth rate
2.0%
2.0%
Pension growth rate
0.0%
0.0%
Assumptions regarding future mortality are set based on actuarial advice in
accordance with published statistics and experience in each territory. These
assumptions translate into an average life expectancy in years for a pensioner
retiring at age of 65.
2014
2013
Retiring at the end of the reporting period:
Male
21.4
21.3
Female
23.9
23.8
Retiring 25 years after the end
of the reporting period:
Male
23.5
23.5
Female
26.0
25.9
The sensitivity of the defined benefit obligation to charges in the weighted
principal assumptions is:
Impact on defined benefit obligations
Change
Increase
Decrease
2014
in assumption
in assumption
in assumption
Discount rate
0.5% Increase by 5.2% Decrease by 4.6%
Increase by one year Decrease by one year
in assumption
in assumption
Life expectancy
Increase by 1.4% Decrease by 1.5%
2013
Discount rate
0.5% Increase by 4.5% Decrease by 4.0%
Increase by one year Decrease by one year
in assumption
in assumption
Life expectancy
Increase by 1.0% Decrease by 1.1%
The above sensitivity analyses are based on a change in an assumption while
holding all other assumptions constant. In practice, this is unlikely to occur, and
changes in some of the assumptions may be correlated. When calculating the
sensitivity of the defined benefit obligation to significant actuarial assumptions
the same method (present value of the defined benefit obligation calculated
with the project unit credit method at the end of the reporting period) has
been applied as when calculating the pension liability recognised within the
statement of financial position.