2018 UEM Edgenta Annual Report

27. DEFINED BENEFIT PENSION PLAN Edgenta UEMS Ltd. (formerly known as 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 2018 2017 RM’000 RM’000 Current service cost – 448 Interest cost on benefit obligation 31 1,122 Administration cost – 172 Expected return on plan assets – (977) Employer’s contribution (55) (2,017) Interest income (5) – Total included in employee benefits expense (Note 8) (29) (1,252) Net actuarial (gain)/loss recognised for the year (104) 1,023 (133) (229) Amount recognised in statement of financial position: Group 2018 2017 RM’000 RM’000 Present value of defined benefit obligation 1,797 2,286 Fair value of plan assets (38) (382) Defined benefit obligation 1,759 1,904 Financial Review Stakeholder Information AGM Information 217 Governance Review of Sustainability Activities