FGV Annual Report 2016

FELDA GLOBAL VENTURES HOLDINGS BERHAD 314 FINANCIAL REPORT NOTES TO THE FINANCIAL STATEMENTS FOR THE FINANCIAL YEAR ENDED 31 DECEMBER 2016 49 PROVISION FOR DEFINED BENEFIT PLAN (CONTINUED) The Group follows the Malaysian Minimum Retirement Age Act 2012 whereby the benefit shall be paid at age of 60 for retirement scheme in Malaysia. 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 2016 RM'000 2015 RM'000 2016 RM'000 2015 RM'000 Present value of unfunded obligation: At 1 January 46,034 39,720 621 540 Charge to profit or loss 18,115 7,850 648 81 Benefits paid (2,002) (1,836) (30) - Re-measurement 9,788 327 344 - Currency translation difference (28) (27) - - At 31 December 71,907 46,034 1,583 621 The remeasurement amounts recognised in the other comprehensive income are determined as follows: Group Company 2016 RM'000 2015 RM'000 2016 RM'000 2015 RM'000 Re-measurement: - Changes in financial assumptions 656 327 25 - - Experience adjustments 9,132 - 319 - 9,788 327 344 -