Page 115 - ICD-AR22-English

Notes to the Separate Financial Statements
FOR THE YEAR ENDED 31 DECEMBER 2022
18.5 The assumptions used to calculate the pension plans liabilities are as follows:
Discount rate 5.10% 2.85% 5.10% - 5.10% 2.85%
Rate of expected salary increase 4.5-6.5% 6.5% - 4.5% 4.5-6.5% - 4.5-6.5% 6.5% - 4.5%
The discount rate used in determining the benefit obligations is selected by reference to the long-term rates on AA rated Corporate Bonds. Rate of expected salaries increase for 2022 was based on age i.e., 20-35 years – 6.5%, 35-50 years – 5.0% and above 50 years – 4.5%.
18.6 The quantitative sensitivity analysis for change in discount rate on the employee benefit liabilities are as follows:
SPP
RMSP
SRMP
31 December 2022 USD
31 December 2021 USD
31 December 2022 USD
31 December 2021 USD
31 December 2022 USD
31 December 2021 USD
2022
SPP
RMSP
SRMP
+0.5%
-0.5%
+0.5%
-0.5%
+0.5%
-0.5%
Discount rate
Rate of expected salary increase
Discount rate
Rate of expected salary increase
(5,138,887) 3,337,382
(8,947,459) 5,111,435
5,875,285 (3,089,314)
10,455,663 (4,914,665)
(162,846) 205,328 (62,615) 69,648
- - 8,376 (7,911)
- - (849,922) 1,000,4907
- - 441,366 (407,634)
2021
SPP
RMSP
SRMP
+0.5%
-0.5%
+0.5%
-0.5%
+0.5%
-0.5%
The following table summarizes the expected funding status for the next year:
2022
SPP
RMSP
SRMP
Present value of defined benefit obligation
65,908,285
1,661,041
1,073,333
Fair value of plan assets
(49,755,158)
(6,280,376)
(548,481)
Plan deficit
16,153,127
(4,619,335)
524,852
REINVIGORATING THE PRIVATE SECTOR TO SHAPE A BETTER FUTURE 113