FGV Annual Report 2014

47 Provision for Defined Benefit Plan The Group operates defined benefit retirement plans in Malaysia, Thailand and Indonesia for all eligible employees. All of the plans are lump sum payments depend on members’ length of service and their salary in the final years leading up to retirement. As the retirement benefit plans are unfunded, the Group meets the defined benefit payment obligations as it falls due. Group Company 2014 2013 2014 2013 RM’000 RM’000 RM’000 RM’000 Non-current – Retirement benefit scheme 22,936 20,399 486 101 – Housing assistance scheme 15,775 14,287 – – – Long service award 1,009 – 54 – 39,720 34,686 540 101 The retirement benefit scheme is a final salary defined benefit plan with a guaranteed lump sum payment at retirement, which remains open to new entrants. The housing assistance scheme is a final salary defined benefit plan with a guaranteed lump sum payment at retirement or at an earlier exit through ill-health retirement or death-in-service in Malaysia, which remains open to new entrants. The long service award is for eligible employees that have served the Group for 20 years in Malaysia. In the previous financial year, following the introduction of the Minimum Retirement Age Act 2012, the Group raised the normal retirement age of the retirement benefit scheme to 60 years for Malaysian employees. The amendment result in a decrease in the present value of benefits obligation. This decrease is represented as a negative past service cost recognised in the profit or loss amounting to RM2,034,000. However, the normal retirement age for the housing assistance scheme will remain at age 56 which will be payable at attainment of 56 years old, regardless of whether employees continue employment until the minimum retirement age of 60 years old. There will be no benefits payable for service earned from age 55 to 60. The defined benefit plan for Indonesian subsidiary is described under Indonesian Labour Law No. 13/2003 and the Thailand subsidiary is under the Legal Severance Plan where the companies are required to pay legal severance payments to employees who leave employment at their retirement age, or are terminated by the companies without reason. The movements during the financial year in the amounts recognised in the statement of financial position of the Group and Company are as follows: Group Company 2014 2013 2014 2013 RM’000 RM’000 RM’000 RM’000 Present value of unfunded obligation: At 1 January 34,686 19,429 101 186 Acquisition of subsidiary – 16,026 – – Charge/(credit) to profit or loss 6,759 563 78 (32) Benefits paid (1,840) (1,544) – (34) Re-measurement 193 212 83 (19) Currency translation difference (78) – – – Transfer – – 278 – At 31 December 39,720 34,686 540 101 Felda Global Ventures Holdings Berhad pg 304 NOTES TO THE FINANCIAL STATEMENTS For The Financial Year Ended 31 December 2014