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Mega ICBC
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(E)
The principal actuarial assumptions used were as follows:
2015
2014
Discount rate
1.25%
1.75%
Rate of future salary increases
2.00%
1.75%
Assumptions regarding future mortality rate are set based on the 5th Chart of Life Span Estimate Used by the Taiwan Life Insurance
Enterprises.
Because the main actuarial assumption changed, the present value of defined benefit obligation is affected. The analysis was as
follows:
Discount rate
Future salary increases
Increase 0.25% Decrease 0.25% Increase 0.25%
Decrease 0.25%
(In NT Thousand Dollars)
December 31, 2015
Effect on present value of defined
benefit obligation
( $
363,207 ) $
377,445 $
373,683 ( $
361,456
)
Discount rate
Future salary increases
Increase 0.25% Decrease 0.25% Increase 0.25%
Decrease 0.25%
(In US Thousand Dollars)
December 31, 2015
Effect on present value of defined
benefit obligation
( $
11,044 ) $
11,477 $
11,362 ( $
10,991
)
The sensitivity analysis above is based on other conditions that are unchanged but only one assumption is changed. In practice, more
than one assumption may change all at once. The method of analysing sensitivity and the method of calculating net pension liability
in the balance sheet are the same.
(F)
Expected contributions to the defined benefit pension plans of the Bank for the year ending December 31, 2016 amounts to
NT$420,000 thousand.
(G)
As of December 31, 2015, the weighted average duration of that retirement plan is 8.75 years.
C.
The Bank’s payment obligations of fixed-amount preferential savings of retired employees and current employees after retirement are in
compliance with the internal “Rules Governing Pension Preferential Savings of Staff of Mega International Commercial Banks”. The
excessive interest arising from the interest rate upon retirement agreed with the employees in excess of general market interest rate should
be accounted for in accordance with IAS 19, “Employee Benefits”.
(A)
Adjustment of assets and liabilities recognised in the consolidated balance sheets, present value of defined benefit obligation, and
fair value of plan assets:
December 31, 2015
December 31, 2014
NT$
US$
NT$
Present value of defined benefit obligation
$
3,102,821 $
94,345 $
2,832,960
Less: Fair value of plan assets
-
-
-
$
3,102,821 $
94,345 $
2,832,960
(B)
Movements in net defined benefit liabilities are as follows:
Present value of
defined benefit
obligation
Fair value of
plan assets
Net defined
benefit liability
(In NT Thousand Dollars)
Year ended December 31, 2015
Balance at January 1
$
2,832,960 $
- $
2,832,960
Interest cost
108,208
-
108,208
2,941,168
-
2,941,168
Remeasurements:
Change in demographic assumptions
347,480
-
347,480
Experience adjustments
366,829
-
366,829
714,309
-
714,309
Pension fund contribution
- (
552,656 ) (
552,656 )
Paid Pension
(
552,656 )
552,656
-
Balance at December 31
$
3,102,821 $
- $
3,102,821