Defined Benefit Plans and Other Long-Term Benefits
The employee benefits provisions recognized relate to:
Note | 2023 | 2022 | |
|---|---|---|---|
Pension plan | (0) | (3) | |
Lump sums on retirement | 8 | 6 | |
Defined benefit plans | 7 | 3 | |
Long-service awards | 14 | 12 | |
Other long-term benefits | 14 | 12 | |
Employee benefits provisions | 21 | 15 |
The defined benefit plan provision is partially funded as follows:
Benefit asset/liability included in the statement of financial position
31 December 2023 | 31 December 2022 | |||||
|---|---|---|---|---|---|---|
Pension plans | Lump sums on retirement | Total | Pension plans | Lump sums on retirement | Total | |
Defined benefit obligation | 22 | 8 | 30 | 22 | 6 | 29 |
Fair value of plan assets | (22) | - | (22) | (25) | - | (25) |
Benefit (asset)/liability | (0) | 8 | 7 | (3) | 6 | 3 |
The main assumptions used in determining employee benefit obligations for the Company’s plans are shown below:
Main assumptions used in determining employee benefit obligations
in % | 2023 | 2022 |
|---|---|---|
Discount rate | 1.50 - 3.40 | 2.50 - 4.25 |
Inflation rate | 2.00 | 2.00 |
Discount rate of return on plan assets during financial year | 1.50 | 2.50 |
Future salary increases | 1.00 - 3.00 | 1.00 - 3.00 |
Future pension increases | 0 - 2.00 | - |
The overall expected rate of return on assets is determined based on the market prices prevailing on that date, applicable to the period over which the obligation is to be settled.