Annual Report 2012 - Swiss Life

In CHF million
31.12.2012 31.12.2011
In CHF million
2012 2011
197 Consolidated Financial Statements
age). The plans are funded by the employer through ordinary contributions determined using actuarial
methods where, under Swiss law, a part (generally less than 50% of the total contribution) is deducted
from the employee’s gross salary. Further funding comprises mandatory transfers of funds made by
new employees from plans of former employers, discretionary contributions by employees (within
plan restrictions) and the earnings on the plan assets.
In January 2011, CHF 684 million in cash was transferred from the Swiss Life Group to two major
defined benefit plans in Switzerland. This amount is included in the contribution by the employer.
The investment risks are now borne by the plan participants themselves whereas mortality and disability
risks are still reinsured with the Swiss Life Group.
The contributions expected to be paid for the year ending 31 December 2013 are CHF 57 million.
These contributions include amounts payable under insurance contracts issued to defined benefit
plans covering own employees.
Amounts recognised in the consolidated balance sheet
Present value of defined benefit obligation –2 666 –2 646
Fair value of plan assets 1 213 1 059
Unrecognised actuarial gains (–)/losses (+) 458 547
Net defined benefit asset (+)/liability (–) –995 –1 040
The net defined benefit asset/liability consists of
gross defined benefit liabilities –1 123 –1 173
gross defined benefit assets 128 133
Amount of insurance contracts not included in plan assets 1 389 1 393
Amounts recognised in the consolidated statement of income
Current service cost 82 71
Interest cost 58 63
Expected return on plan assets –39 –35
Net actuarial gains (–)/losses (+) 32 9
Employee contributions –23 –24
Total defined benefit expense 110 84
Actual return on plan assets (gains (–)/losses (+)) –106 –31
Swiss Life – Annual Report 2012