INDOFOOD AGRI RESOURCES LTD
ANNUAL REPORT 2015
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For the financial year ended 31 December 2015
28.
EMPLOYEE BENEFITS (CONT’D)
The principal assumptions used in determining post-employment obligations for the Group’s plan are as follows:
Annual discount rate
:
9.0% (2014: 8.0%)
Future annual salary increase
:
9.0% (2014: 9.0%)
Annual employee turnover rate
:
6.0% (2014: 6.0%) for employees under the age of 30 years and linearly
decrease until 0% at the age of 52 years
Disability rate
:
10% (2014: 10%) from mortality rate
Mortality rate reference
:
Indonesian Mortality Table (“IMT”) 2011 (2014: IMT 2011)
Retirement age
:
55 years (2014: 55 years)
Sensitivity analysis to the principal assumptions used in determining employee benefits obligations are as follows:
Assumptions
Quantitative Sensitivity Analysis
Increase /(Decrease)
(Decrease)/Increase in the Net
Employee Benefits Liabilities
Rp million
Annual discount rate
100/(100) basis points
(136,363)/155,459
Future annual salary increase
1%/(1%)
156,887/(139,421)
The sensitivity analysis above have been determined based on a method that extrapolates the impact on defined benefit
obligation as a result of reasonable changes in key assumptions occurring at the end of the reporting period.
The following payments are expected contributions to the defined benefit plan obligation in future years:
2015
2014
Rp million
Rp million
Within the next 12 months
70,053
42,594
Between 1 and 2 years
88,452
101,147
Between 2 and 5 years
855,217
643,583
Beyond 5 years
21,191,564
17,252,977
Total expected payments
22,205,286
18,040,301
The average duration of the defined benefit plan obligation at the end of the reporting period is 13.4 years (2014: 13.5 years).
