Annual Report 2011 - Hong Kong Monetary Authority

2011 2010 Change
(in CHF ‘000) (in CHF ‘000) (in %)
35 Personnel expenses Total 356,982 372,205 (4.1)
Salaries
Employee benefits:
289,384 305,772 (5.4)
- statutory social security 24,768 23,203 6.7
- contributions to pension funds 27,401 27,783 (1.4)
Other personnel expenses 15,429 15,447 (0.1)
356,982 372,205
“Salaries” covers the payroll of permanent and temporary staff, plus
bonuses, fees paid to directors and supplementary allowances.
Personnel welfare plans
The staff of the parent company and of some affiliates are insured by the
Personnel Welfare Foundation for the Staff of Banque Privée Edmond
de Rothschild SA and Allied Companies (the “Joint Foundation”). Its
purpose is to protect the staff of its member companies from the economic
consequences of old age, disability and death. The Joint Foundation is
semi-autonomous and operates on the basis of actual contributions
(the “primacy of contributions” principle). Contribution rates increase
with age. Employers pay in two-thirds of contributions and employees
one-third. Death and disability coverage is financed by the Employers’
Personnel Welfare Foundation for the Staff of Banque Privée Edmond
de Rothschild SA and Allied Companies (the “Employers’ Foundation”).
Administrative overheads are covered by member employers. Employees
are jointly liable in full within the Joint Foundation.
The Foundation’s latest audited financial statements showed a funding
ratio of 101.10% at 31 Dec. 2010 (as against 97.23% at 31 Dec. 2009).
Funding
surplus /
deficit
2010 2009 2010 2009
Entity’s
share
Entity’s
share
Change v.
previous
year
Periodadjusted
contributions
Personnel
welfare costs
included
in personnel
expenses
Personnel
welfare costs
included
in personnel
expenses
Economic benefits / commitments
and personnel welfare expenses
(in thousands of CHF)
Employers’ funds / employers’ personal
welfare institutions
Personnel welfare institutions with a surplus
14,883 - - - 5,159 5,159 5,118
funding ratio
Personnel welfare institutions with no
3,781 - - - 22,624 22,624 21,361
proprietary assets - - - - - - -
Total 27,783 27,783 26,479
2011 2010
CH EU Other
countries
Given the negative return on the Foundation’s assets resulting from last
year’s shaky economic and financial environment, the funding ratio at
end-2011 is estimated to be between 93% and 94%. The Foundation
Board therefore resolved not to adjust pensions and to pay 0.5% interest
on capital savings accounts in 2011.
The Board of Directors believes that any funding ratio surplus as defined
in RPC 16 of the Swiss GAAP will be used for the benefit of employees and
that, as a consequence, no profit will arise for the member companies.
The member companies whose staff are insured by the Joint Foundation
also pay into the Employers’ Foundation in favour of the staff of Banque
Privée Edmond de Rothschild SA and of the member companies. The
purpose of the Foundation is to make payments on a voluntary basis
to the Foundation in favour of the Staff of Banque Privée Edmond de
Rothschild. Such benefits are financed by the member companies’
voluntary contributions. The employers are jointly liable in full within the
Employers’ Foundation.
The employees of other Group entities belong to personnel welfare
funds that also operate on the primacy of contributions principle.
At 31 Dec. 2011 there was no employer contributions reserve.
Total CH EU Other
countries
Group personnel
(number of employees)
Average number of employees
Total number of employees
668 965 55 1,688 654 922 41 1,617
at year-end
Number of employees at year-end,
686 982 64 1,732 670 940 39 1,649
converted into full-time jobs 662 957 64 1,683 647 918 39 1,604
Total
FINANCIAL REPORT CONSOLIDATED ACCOUNTS 95