28. PROVISION FOR RETIREMENT BENEFITS (CONTINUED)
The amount recognised in profit or loss is as follows:
Group
2014
2013
RM’0
RM’000
RM’000
Current service cost
122
112
Interest cost on benefit obligation
109
98
Past service cost
–
96
Curtailments*
–
(32)
Total included in employee benefits costs
(Note 7)
231
274
* The curtailment gain was recognised in respect of several members who were no longer eligible for the retirement plan benefits from
1 January 2013.
The principal assumptions used in respect of the defined benefit plan of the Group are as follows:
Group
2014
2013
%
%
Discount rate
1
5.4
5.4
Expected rate of salary increase
– Non-management staff
2
5.5
5.5
– Management staff
2
5.5
5.5
Turnover
3
Age related scale of 25% per
annum prior age 25,
gradually reducing to
0% per annum by age 50
Age related scale of 25% per
annum prior age 25,
gradually reducing to
0% per annum by age 50
1 Discount rate is reflective of 10 – 15 year yield for AAA rated bond.
2 Expected rate of salary increase is as per industry average.
3 Turnover rate is relatively influenced by average employees age.
The above assumptions derived from the latest actuarial valuation of the plan which was carried out on 6 February 2012.
2014
2013
RM’0
RM’000
RM’000
1.
A 1% increase in salary increment rate
a. Defined benefit obligation
2,262
2,041
b. Effect an increase of net defined liability
2
2
2.
A 1% decrease in discount rate
a. Defined benefit obligation
2,257
2,037
b. Effect a decrease of net defined liability
(2)
(2)
276
KPJ Healthcare Berhad annual report
2014
Notes to the
Financial Statements
For the financial year ended 31 December 2014 (continued)
