D-Link 2013 Annual Report Download - page 56
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D-LINK CORPORATION AND SUBSIDIARIES
Notes to the consolidated financial statements
(Continued)
Based on the Company’s pension plan, each employee earns two months of salary for the first
fifteen years of service, and one month of salary for each year of service thereafter. The
maximum retirement benefit is forty-five months of salary. Payments of retirement benefits are
based on the years of service and the average salaries for six months before the employee’s
retirement.
(i) Composition of plan
The Company’s allocates 2% of each employee's monthly wage to the labor pension
personal account at Bank of Taiwan in accordance with the provisions of Labor Pension
Act, whereby, the labor pension personal account will make pension payment in advance.
The Company’s Bank of Taiwan labor pension reserve account balance amounted to
$138,201 thousand at the date of reporting date. For information on the utilization of the
labor pension fund assets, including the asset allocation and yield of the fund, please refer
to the website of the Labor Pension Fund Supervisory Committee.
(ii) Movements in the present value of the defined benefit obligations were as follows:
2013
2012
Defined benefit obligation at January 1
$ 163,726
141,840
Benefits paid by the plan
(8,705)
(7,359)
Current service cost and interest
5,095
4,568
Actuarial (gain) loss on obligation
(292)
24,677
Defined benefit obligation at December 31
$ 159,824
163,726
(iii) Movements in the fair value of the plan assets
The movements in the present value of the plan assets in the years 2013 and 2012 were as
follows:
2013
2012
Fair value of plan assets at January 1
$ 139,743
141,676
Contributions made
4,151
4,069
Benefits paid by the plan
(8,705)
(7,359)
Expected return on plan assets
2,455
2,864
Actuarial loss on plan assets
(664)
(1,507)
Fair value of plan assets at December 31
$ 136,980
139,743