DMIT_Annual_Report_2018_EN

N OTES TO THE C ONSOLIDATED F INANCIAL S TATEMENTS (Thousands of US dollars) Dar Al-Maal Al-Islami Trust 86 35. Retirement benefit plans (continued) Pension assets include Swiss real estate partially occupied by the Group with a fair value is nil (2017: USD 12.8 million). Through its defined benefit pension plan in Switzerland, the Group is exposed to few risks, the most significant of which are detailed below: During 2017, the Group operated 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 guaranteed interest credits on member savings which were at least equal to those required under Swiss law. Pensions at retirement were insured to remove longevity and investment risk following retirement. The Group only incurred 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. The Group has not changed the processes used to manage its risks from previous periods. The Group does not use derivatives to manage its risk. Investments are well diversified, such that the failure of any single investment would not have a material impact on the overall level of assets. A large portion of assets in 2017 are managed by an insurance company, although the Group also invests in property and cash. Expected contributions to post-employment benefit plans for the year ending 31 December 2019 are Nil (2018: USD 0.3 million). The weighted average duration of the defined benefit obligation is nil (2016: 9.1 years). The expected maturity analysis of undiscounted pension benefits at 31 December 2018 was: Less than a year (USD) Between one to two years (USD) Between three to five years (USD) Over five years (USD) Total (USD) Undiscounted pension benefits - - - - - 36. Related party transactions and balances Related parties include equity participation holders, directors, associated companies and other companies, whose ownership and management is common with DMI or its subsidiaries and associates. A number of transactions are entered into with related parties in the normal course of business. These include loans, current and investment accounts. Transactions and balances disclosed as with associated companies are those with companies in which DMI owns 20% to 50% of the voting rights and over which it exerts significant influence, but does not have control. The volumes of related party transactions, outstanding balances at the year end, and relating income and expense for the year are as follows.