2020 UEM Edgenta Annual Report

25. DEFINED BENEFIT PENSION PLAN Defined benefit pension plan is by a subsidiary, Edgenta UEMS Ltd. (“UEMS Taiwan”). UEMS Taiwan has a retirement plan covering all its regular employees who opted for defined benefits plan. Benefits under the plan are based on the length of service and estimated base pay at the time of retirement. The pension assets and liabilities are valued on annual basis by independent actuary, taking into account gains and losses. The plan assets, comprising cash and cash equivalents, are deposited with the Bank of Taiwan and are managed by the government of Taiwan. The plan assets do not have quoted market prices in active market. Amount recognised in the income statement and statement of comprehensive income: Group RM’000 2020 2019 Interest cost on benefit obligation 12 20 Employer’s contribution (357) (745) Interest income (3) – Total included in employee benefits expense (Note 8) (348) (725) Net actuarial loss recognised for the year 114 64 (234) (661) Amount recognised in statement of financial position: Group RM’000 2020 2019 Present value of defined benefit obligation 1,657 1,611 Fair value of plan assets (720) (495) Defined benefit obligation 937 1,116 Changes in present value of defined benefit obligation: Group RM’000 2020 2019 At 1 January 1,611 1,797 Interest cost 12 20 Benefit paid (177) (288) Actuarial loss 132 70 Exchange differences 79 12 At 31 December 1,657 1,611 ANNUAL REPORT 2020 263 1 2 3 4 5 6 7 8