Benefit expenses

One-time effects influencing pension plans and other long-term benefits

On 1 January 2014, the LLB Group introduced a new compensation model. This implements a higher variable salary component and makes the variable salary component subject to pension plan contributions. The Foundation Board of the Personnel Pension Fund Foundation of LLB AG had approved the new compensation model in April 2013. The new compensation model led to an increase in the benefit obligation and to a one-time charge in personnel expenses of CHF 2.9 million, as well as an additional annual expense of CHF 1.4 million. Both effects were recognised fully in the income statement per 31 December 2013.

The closure of LLB (Switzerland) Ltd., as announced in connection with the Focus2015 strategy, led to a reduction in the benefit obligation and to a one-time reduction in personnel expenses of CHF 3.9 million, which was recognised fully in the income statement per 31 December 2013.

The following amounts are reported in the income statement and in equity as benefit plan expenses:

Benefit expenses

(XLS:) Download

 

Pensions plans

Other long-term benefits

in CHF thousands

2014

2013

2014

2013

Defined benefit costs

 

 

 

 

Service cost

 

 

 

 

Current service cost

−16'521

−18'887

−466

−501

Past service cost including effects of curtailment

−374

2'673

−79

13

Total service cost

−16'895

−16'214

−545

−488

Net interest

 

 

 

 

Interest cost on defined benefit obligation

−9'428

−8'723

0

−67

Interest income on plan assets

8'710

7'446

0

0

Total net interest

−718

−1'277

0

−67

Administration expense

−728

−731

0

0

Net actuarial (losses) / gains recognised

0

0

−112

79

Others

0

0

0

36

Total defined benefit cost

−18'341

−18'222

−657

−440

thereof personal expense

−18'341

−18'222

−657

−440

thereof financial expense

0

0

0

0

Contributions to defined contribution plans

−220

−206

0

0

 

 

 

 

 

Remeasurement of the defined benefit liability

 

 

 

 

Actuarial (gains) / losses

 

 

 

 

Arising from changes in demographic assumptions

0

0

 

 

Arising from changes in economic assumptions

−58'646

15'898

 

 

Arising from experience

8'872

12'309

 

 

Return on plan assets
(excl. amounts incl. in interest income)

10'005

12'697

 

 

Others

−599

−471

 

 

Total defined benefit cost recognised
in other comprehensive income

−40'368

40'433

 

 

 

 

 

 

 

Total benefit cost

−58'709

22'211

−657

−440

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