Page 110 - ICD-AR22-English

Notes to the Separate Financial Statements
FOR THE YEAR ENDED 31 DECEMBER 2022
January 1, 2021 are enrolled automatically.
In both Pillars, the employee contributes at a rate of 11.1% (2021-11.1%) of the basic annual salary while the Bank and its Affiliates contribute 25.9% (2021-25.9%).
The main features of the SPP are:
(i) Normal retirement age is the 62nd anniversary of the participant’s birth
(ii) On retirement, the eligible retired employee is entitled to 2.5% under the old staff retirement plan or 1% under the hybrid plan in the Defined Benefit (“DB”) component, of the Weighted Highest Average Remuneration (“WHAR”) (as defined by the pension committee) for each year of pensionable service and limited to a maximum of 30 hijri years.
(iii) 10% of Bank and its Affiliates contribution of 25.9%, and 5% of employees' contribution of 11.1%, are used to fund the Defined Cost (“DC”) component of the hybrid plan. The accumulated fund and its investment returns will be paid as retirement lump sum benefits to the participants in the hybrid plan.
(iv) Benefits payment upon early retirement, disability benefits, termination benefits, pre-retirement death or post retirement death benefits are also paid as determined by the Pension Committee.
SRMP
Effective 1st Muharram 1421H (corresponding to April 6, 2000), the Bank established the medical benefit scheme for retired employee via the BED resolution dated 18 Shawwal 1418H (corresponding to February
15, 1998). This was extended to eligible staff members of the Bank’s Affiliates i.e. for SPP. The Bank and its Affiliates at rate 1% and the staff at a rate 0.5% of the basic salaries respectively fund the SRMP. The purpose of the SRMP is to pay a monthly amount to eligible retired employee towards their medical expenses.
The entitlements payable for each retired employee under the medical plan is computed according to the following formula:
WHAR (as defined by the pension committee) X contributory period (limited to a maximum of 30 hijri years) X 0.18%
Benefits payment upon early retirement, disability benefits, termination benefits, pre-retirement death or post retirement death benefits are also paid as determined by the pension committee.
RMSP
In February 2019, the BED approved, establishment of the Retirees Medical Solidarity Plan (RMSP) which would provide new medical coverage benefits for IsDB Group staff future retirees. Under the proposal, active staff members who have at least 10 years of service period before their normal retirement age as of January 1, 2019 will automatically fall under RMSF. Those staff members who do not meet the minimum service period threshold will be offered the option to join the new Fund.
108 ICD ANNUAL REPORT 2022