TAN CHONG MOTOR HOLDINGS BERHAD
Annual Report 2014
96
NOTES TO THE FINANCIAL STATEMENTS
19. Employee benefits (continued)
Under the Group’s and the Company’s defined benefit scheme, eligible employees are entitled to retirement benefits of
16.0% to 17.0% of total basic salary earned less the statutory pension funds for each completed year of service upon
the retirement age of 60 as well as retirement benefits of a factor of the last drawn monthly salary for each completed
year of service upon the retirement age of 60.
Movements in the net defined benefit liability
The following table shows a reconciliation from the opening balance to the closing balance for net defined benefit
liability and its components.
Group
Company
2014
2013
2014
2013
RM’000
RM’000
RM’000
RM’000
Balance at 1 January
39,339
40,830
16,641
15,789
Included in profit or loss
Current service cost
4,804
2,016
76
546
Past service credit
130
1,020
-
35
Interest cost
669
1,247
27
271
5,603
4,283
103
852
Included in other comprehensive income
Remeasurement loss/(gain)
- Actuarial loss/(gain) arising from:
- Demographic assumptions
-
154
-
-
- Financial assumptions
-
(659)
-
-
- Experience adjustments
(1,007)
(3,262)
-
-
(1,007)
(3,767)
-
-
Others
Benefits paid
(209)
(2,007)
-
-
Balance at 31 December
43,726
39,339
16,744
16,641
Actuarial assumptions
Principal actuarial assumptions used at the end of the reporting period (expressed as weighted averages):
2014
2013
%
%
Discount rate
5.75 and 6.00 5.75 and 6.00
Future salary increases
6.5
6.5
