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284

Notes to the

Financial Statements

for the year ended 31 December 2016

26. DEFINED BENEFIT PENSION PLAN

Defined benefit pension plan relates to separate pension plans provided by two subsidiaries of the Company, Opus

International Consultants (UK) Ltd. and UEMS Solutions Ltd.

(a) Opus International Consultants (UK) Ltd.

The defined benefit pension fund (“Fund”) is closed to new employees. The assets of the Fund are held in a legally

separate fund from the reporting entity and the Fund exists solely to pay or fund employee benefits. The assets

are funded by both the employer and employees. The Fund purchases an annuity at the time of an employee

becoming entitled to a pension. The Fund is valued on an annual basis by independent actuary, taking into account

gains and losses.

The schemes assets are invested in a Group Pension Contract insured with Clerical Medical. Other than the

decision to remain invested in the Group Pension Contract, the trustees and Group do not have control over asset

allocation.

(b) UEMS Solutions Ltd. (“UEMS Taiwan”)

UEMS Taiwan has a retirement plan covering all its regular employees who opted for defined benefits plan. Benefits

under the plan are based on the length of service and estimated base pay at the time of retirement. The pension

assets and liabilities are valued on annual basis by independent actuary, taking into account gains and losses.

The plan assets, comprising cash and cash equivalents, are deposited with the Bank of Taiwan and are managed

by the government of Taiwan. The plan assets do not have quoted market prices in active market.

Amount recognised in the income statement and statement of comprehensive income:

Group

2016

RM’000

2015

RM’000

Current service cost

294

324

Interest cost on benefit obligation

1,203

1,269

Administration cost

170

161

Expected return on plan assets

(1,183)

(1,329)

Employer’s contribution

(1,347)

(1,789)

Interest income

(3)

Total, included in employee benefits expenses (Note 8)

(866)

(1,364)

Net actuarial loss recognised for the year

5,370

2,212

4,504

848