Benefit expenses

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

The closure of LLB (Switzerland) Ltd., within the scope of the Focus2015 strategy, led to a reduction of the defined benefit obligation and to a one-time decrease in personnel expenses of CHF 3.4 million, which was recognised fully in the income statement per 31 December 2015.

The collective foundation, with which one Group company is affiliated, lowered the conversion rates for the non-obligatory part of the pension plan. In the 2015 business year, this led to a one-time reduction in personnel expenses and the contributions to pension funds for defined benefit plans of CHF 7.9 million.

The following amounts were recognised in the income statement and equity as pension costs:

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Pensions plans

Other long-term benefits

in CHF thousands

2015

2014 (restated) *

2015

2014

*

The comparison period was adjusted on the basis of the restatement. See point 2.1 of the accounting principles.

Defined benefit costs

 

 

 

 

Service cost

 

 

 

 

Current service cost

–16'561

–16'132

–420

–466

Past service cost including effects of curtailment

7'938

–374

247

–79

Gain / (losses) from non-routine settlements

2'825

0

0

0

Total service cost

–5'798

–16'506

–173

–545

Net interest

 

 

 

 

Interest cost on defined benefit obligation

–5'655

–9'603

0

0

Interest income on plan assets

4'683

8'710

0

0

Total net interest

–972

–893

0

0

Administration expense

–677

–728

0

0

Net actuarial (losses) / gains recognised

0

0

–278

–112

Others

0

–214

0

0

Total defined benefit cost

–7'447

–18'341

–451

–657

thereof personal expense

–7'447

–18'341

–451

–657

thereof financial expense

0

0

0

0

Contributions to defined contribution plans

–215

–220

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

–22'640

–70'474

 

 

Arising from experience

4'426

16'807

 

 

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

–3'510

10'005

 

 

Others

0

–385

 

 

Total defined benefit cost recognised in other comprehensive income

–21'724

–44'047

 

 

 

 

 

 

 

Total benefit cost

–29'386

–62'608

–451

–657