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49
Annual Report 2015
-49-
Present value of
defined benefit
obligation
Fair value of
plan assets
Net defined
benefit liability
(In US Thousand Dollars)
Year ended December 31, 2015
Balance at January 1
$
86,140 $
- $
86,140
Interest cost
3,290
-
3,290
89,430
-
89,430
Remeasurements:
Change in demographic assumptions
10,565
-
10,565
Experience adjustments
11,154
-
11,154
21,719
-
21,719
Pension fund contribution
- (
16,804 ) (
16,804 )
Paid Pension
(
16,804 )
16,804
-
Balance at December 31
$
94,345 $
$- $
94,345
Present value of
defined benefit
obligation
Fair value of
plan assets
Net defined
benefit liability
(In NT Thousand Dollars)
Year ended December 31, 2014
Balance at January 1
$
2,602,249 $
- $
2,602,249
Interest cost
99,455
-
99,455
2,701,704
-
2,701,704
Remeasurements:
Change in demographic assumptions
317,843
-
317,843
Experience adjustments
310,806
-
310,806
628,649
-
628,649
Pension fund contribution
- (
497,393 ) (
497,393 )
Paid Pension
(
497,393 )
497,393
-
Balance at December 31
$
2,832,960 $
- $
2,832,960
(C)
Actuarial assumptions are as follows:
2015
2014
Discount rate for employee preferential interest savings
4.00%
4.00%
Return rate on capital deposited
2.00%
2.00%
Annual decreasing ratio for account balance
1.00%
1.00%
Probability of change in preferential savings system in the
future
50.00%
50.00%
Because the main actuarial assumption changed, the present value of employee preferential interest savings obligation is affected.
The analysis was as follows:
Discount rate
Future salary increases
Increase 0.25% Decrease 0.25% Increase 0.05%
Decrease 0.05%
(In NT Thousand Dollars)
December 31, 2015
Effect on present value of defined benefit
obligation
(
$
63,938 ) $
66,406 ( $
15,190 ) $
15,190
Discount rate
Future salary increases
Increase 0.25% Decrease 0.25% Increase 0.05%
Decrease 0.05%
(In US Thousand Dollars)
December 31, 2015
Effect on present value of defined benefit
obligation
(
$
1,944 ) $
2,019 ( $
462 ) $
462
(D)
The Bank recognised employee benefit expenses of NT$1,347,674 thousand and NT$1,241,597 thousand for the years ended
December 31, 2015 and 2014, respectively.
D.
Reserve for guarantee liabilities
The Bank had provided appropriate reserve for guarantee liabilities based on the guarantee reserve assessed. The details and movements
of reserve for guarantee liabilities for the years ended December 31, 2015 and 2014 are as follows:
December 31, 2015
December 31, 2014
NT$
US$
NT$
Balance at January 1
$
3,204,543 $
97,438 $
3,562,797
Provision (reversal)
32,254
981 (
350,930 )
Effects of exchange rate changes and others
4,089
124 (
7,324 )
Balance at December 31
$
3,240,886 $
98,543 $
3,204,543