Siegfried Annual Report 2009

19. Employee benefits and personnel
expenses
[In 1000 CHF] 2009 2008
Wages and salaries 82 003 81 963
Pension expense defined contribution plans 575 760
Pension expense/-income defined benefit plans 4 045 –4 230
Income/-expense other long-term
employee benefits –1 115 440
[Sozial- und übriger Personalaufwand] 15 800 19 423
Total personal expenses 101 308 98 356
In the year under review the average personnel strength
(in full time positions) was 823 (2008: 826).
IFIRC 14 (The Limit on a Defined Benefit Asset, Minimum
Funding Requirements and their Interaction) applies to all
post-employment defined benefits and other long-term
employee defined benefits. It addresses the question when
refunds or reductions in future contributions should be
regarded as available as an economic benefit to the company
and when a minimum funding requirement might give
rise to a supplemental liability. As already at December 31,
2008 the interpretation had no impact on the equity of the
Group at December 31, 2009.
The following amounts have been recorded in the profit and
loss account as personnel expense:
Staff pension schemes and other long-term employee
benefits The Group operates various employee benefit
plans in and outside of Switzerland for employees that satisfy
the participation criterions. Among these plans are
defined benefit plans and defined contribution plans that
cover the majority of employees for death, disability and
retirement. There are also plans for jubilee benefits or other
year of service depending plans which qualify as plans for
other long-term employee benefits.
Benefits are usually dependent on one or more factors such
as the number of years the employee was covered in the
plan, age, pension able salary and on the accumulated old
age capital. The assets of the funded pension plans are held
within separate foundations or insurances and may not
revert to the employer.
In Switzerland, the benefits are provided through the
autonomous pension fund “Pensionskasse Siegfried” and
four pension plans affiliated to a collective foundation. As of
January 1, 2009, three of these four schemes have been
merged with the “Pensionskasse Siegfried”. The “Pensionskasse
Siegfried” and the plan provided through the collective
foundation qualify under IAS 19 as defined benefit
plans.
During fiscal year 2009 a restructuring occurred in Switzerland.
For certain employees the restructuring program provided
enhanced early retirement benefits. Moreover, certain
retirement and jubilee benefits have been reduced. The pension
plan in the US was closed for new entries and frozen for
the current employees. In total a curtailment gain of CHF 2.3
million and an expense of CHF 1.4 million for termination
benefits resulted for the pension plans. For the other longterm
employee benefits the reduction in the benefits resulted
in a prior service income of CHF 1.6 million.
Employee benefits expense
Pension plans
Other long-term
employee benefits
In CHF million 2009 2008 2009 2008
Current service cost 6.1 6.6 0.3 0.3
Interest on obligation 8.4 8.7 0.1 0.1
Expected return on plan assets –9.6 –10.7 – –
Curtailments –2.3 –11.1 – –
Termination benefits 1.4 – – –
Amortization of unvested
past service cost – 2.3 –1.6 –
Recognized actuarial losses – – 0.1 –
Total employee benefits expense 4.0 –4.2 –1.1 0.4
Actual return on plan assets 24.8 –33.2
The following amounts are recognized in the statement of
comprehensive income for the pension plans.
Statement of comprehensive income
Pension plans
In CHF million 2009 2008
Opening recognized (gains)/losses as of 1.1. 31.9 –9.8
Actuarial (gains)/losses during the year 0.5 –2.1
Asset (gains)/losses –15.2 43.9
Exchange differences on foreign plans – –0.1
Closing recognized (gains)/losses as of 31.12. 17.2 31.9
Financial Statements Siegfried Group 97