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FRONTKEN CORPORATION BERHAD
(651020-T)
ANNUAL REPORT
2015
24.
TRADE PAYABLES, OTHER PAYABLES AND ACCRUED EXPENSES (CONT’D)
(a) Defined benefit plan – Taiwan (Cont’d)
The Group defined benefit plan based on the actuarial valuation performed by an independent actuary adopting
the Projected Unit Credit With Service Increment method, with the following principal actuarial assumptions:
The Group
2015
2014
i)
Mortality rate
- below 25
0.00029
0.00029
- between age 25 to 30
0.00068
0.00068
- between age 30 to 35
0.00090
0.00090
- between age 35 to 40
0.00133
0.00133
- between age 40 to 45
0.00197
0.00197
- between age 45 to 50
0.00303
0.00303
- between age 50 to 55
0.00448
0.00448
- between age 55 to 60
0.00664
0.00664
- between age 60 to 65
0.01026
0.01026
ii)
Retirement age
65
65
iii) Disability rate (per annum)
10% of mortality rate 10% of mortality rate
iv) Discount rate (per annum)
1.75%
1.88%
v)
Expected rate of salary increases (per annum)
3.00%
3.00%
The Group
2015
2014
RM
RM
(Decrease)/
(Decrease)/
Increase
Increase
Effect on defined benefit obligations
Discount rate (per annum)
- strengthened by 0.25%
(250,007)
(186,288)
- weakened by 0.25%
263,346
196,229
Expected rate of salary increases (per annum)
- strengthened by 0.25%
254,803
189,890
- weakened by 0.25%
(243,206)
(181,234)
(b) Defined benefit plan – Philippines
The Group conforms to the minimum regulatory benefit under prevailing law and regulations which is of the defined
benefit type.
The normal retirement age is 60. The plan provides a benefit equal to 22.5 days’ salary for every year of credited
service. The regulatory benefits are paid in lump sum upon retirement.
NOTES TO THE FINANCIAL STATEMENTS
(cont’d)