DMIT Annual Report 2017

N OTES TO THE C ONSOLIDATED F INANCIAL S TATEMENTS (Thousands of US dollars) Dar Al-Maal Al-Islami Trust 81 35. Retirement benefit plans (continued) The movement in the liability recognised in the statement of financial position: 2017 2016 At 1 January 3,629 7,239 Defined benefit cost included in P&L (2,369) 1,188 Total remeasurement included in OCI (1,199) (3,872) Employer contributions (643) (704) Exchange differences 134 (222) At 31 December (448) 3,629 Plan assets are comprised as follows: 2017 2016 Quoted Unquoted Total % Quoted Unquoted Total % Assets held by insurance company - 25,396 25,396 60 - 22,782 22,782 58 Property in Switzerland - 12,778 12,778 30 - 12,625 12,625 32 Cash and cash equivalents 3,928 - 3,928 10 4,142 - 4,142 10 Total 3,928 38,174 42,102 100 4,142 35,407 39,549 100 Pension assets include Swiss real estate partially occupied by the Group with a fair value of USD 12.8 million (2016: USD 12.6 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.