31 PROVISION FOR RETIREMENT BENEFITS (CONTINUED)
The principal assumptions used in respect of the defined benefit plan of the Group are as follows:
Group
2015
%
2014
%
Discount rate
1
5.4
5.4
Expected rate of salary increase
– Non-management staff
2
5.0
5.5
– Management staff
2
5.0
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 employee age
The above assumptions derived from the latest actuarial valuation of the plan.
2015
RM’000
2014
RM’000
1. A 1% increase in salary increment rate
a Defined benefit obligation
2,550
2,262
b Effect an increase of net defined liability
252
2
2. A 1% decrease in salary increment rate
a Defined benefit obligation
2,552
2,257
b Effect an decrease of net defined liability
254
(2)
32 DEPOSITS
Deposits represent amounts received from consultants, which are repayable on death, retirement (at age 65) or disability of
the consultants Deposits are forfeited on termination of a consultant’s practice either by the Group due to events of breach
or on early termination by the consultant unless approval to refund is obtained from the board of directors.
312
NOTES TO THE
FINANCIAL STATEMENTS
FOR THE FINANCIAL YEAR ENDED 31 DECEMBER 2015 (CONTINUED)
