Pension plans and other long-term benefits

The LLB Group has established a number of pension plans in compliance with prevailing legal provisions, which insure most employees in the event of death, invalidity and retirement. These include both defined benefit and defined contribution plans. In addition, further plans exist for long-service anniversaries which qualify as other long-term employee benefits.

In the case of most of the pensions plans, contributions are made by employees, which are then supplemented by corresponding contributions from the LLB Group. The pensions schemes are financed in compliance with local legal and fiscal regulations.

Benefits are usually dependent on one or more factors such as the number of years the employee was covered in the plan, age, pensionable salary and to some extent on the accumulated old age capital. The assets of the funded pension plans are held within separate foundations or insurances and may not revert to the employer.

The benefit obligations for defined benefit pension plans were calculated using the «Projected Unit Credit Method». The «Traditional Unit Credit Method» was applied to some benefit obligations on account of the structuring of the retirement benefits. The last actuarial valuations were performed on 31 December 2011 and 31 December 2010.

The actuarial profits and losses are included directly in equity.

The values shown in the following tables contain the non-current assets held for sale.

The following amounts are reported in the income statement as personnel expenses:

(XLS:)

in CHF thousands

Pension plans

Other long-term benefits

 

2011

2010

2011

2010

Current service cost

–15'344

–17'941

–772

–1'073

Interest on obligations

–12'041

–12'774

–186

–245

Expected return on plan assets

13'368

13'667

0

0

Net actuarial (losses) gains recognised

0

0

–300

1'731

Amortisation of unvested past service cost

353

746

0

0

Expense for defined benefit plans

–13'664

–16'302

–1'258

413

Contributions to defined contribution plans

–121

–37

0

0

 

 

 

 

 

Actual return on plan assets

–1'281

10'953

0

0

The following overview shows the gains and losses reported in the consolidated statement of comprehensive income:

(XLS:)

in CHF thousands

Pension plans

 

2011

2010

As at 1 January

–52'798

–57'492

Actuarial gains/(losses) during the year

–26'578

7'049

Asset gains/(losses)

–14'649

–2'355

As at 31 December

–94'025

–52'798

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