Pension plans and other long-term benefits
audited information

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. 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 «Projected Unit Credit Method» is used to determine the benefit obligations for defined benefit pension plans. 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 2008 and 31 December 2009.

The actuarial profits and losses are included in the consolidated statement of comprehensive income directly in equity capital.

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

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in CHF thousands

Pension plans

Other long-term benefits

 

2009

2008

2009

2008

Current service cost

–17'470

–16'337

–1'038

–872

Interest on obligations

–12'022

–11'425

–229

–227

Expected return on plan assets

11'974

12'305

0

0

Net actuarial (losses) gains recognised

0

0

–70

–371

Amortisation of unvested past service cost

296

–60

0

23

Vested past service cost

0

0

0

0

Total included in employee benefits expense

–17'222

–15'517

–1'337

–1'447

 

 

 

 

 

Actual return on plan assets

27'499

–32'436

0

0

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

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in CHF thousands

Pension plans

 

2009

2008

At at 1 January

–74'750

–24'223

Actuarial gains/(losses) during the year

1'733

–12'424

Asset gains/(losses)

15'525

–44'741

Alteration of non-reported assets

0

6'638

As at 31 December

–57'492

–74'750