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19 Pension fund obligation

19 Pension fund obligation
  2010 2011
  CHF thousands    
  Development of plan liabilities and assets    
  Present value of plan liabilities on 1 January 167,106 179,161
  Service costs 7,115 7,981
  Past service costs 200 2,061
  Interest expense 5,215 4,874
  Plan reduction / plan payment -7,203 -2,158
  Benefits paid -7,686 -8,405
  Gains / losses 14,703 7,753
  Currency gains/losses -289 -56
  Present value of plan liabilities at 31 December 179,161 191,211
       
  Fair value of plan assets on 1 January 143,929 146,543
  Expected return on plan assets 6,243 5,806
  Employer contributions 4,416 3,567
  Employee contributions 2,247 2,038
  Plan reduction / plan payment -5,188 -
  Benefits paid -7,686 -8,405
  Gains / losses 2,582 -9,571
  Fair value of plan assets at 31 December 146,543 139,978
       
  Recognised pension liabilities    
  Fair value of plan assets 146,543 139,978
  Present value of pension obligation excluding plan assets -177,447 -188,805
  Shortfall/surplus -30,904 -48,827
       
  Present value of pension obligation excluding plan assets -1,714 -2,406
  Unrecognised past service costs - 1,889
  Unrecognised actuarial gains/losses 24,859 41,704
  Recognised pension liabilities -7,759 -7,640
       
  Pension expense recognised under personnel expenses    
  Service costs 7,115 7,981
  Interest expenses 5,215 4,874
  Expected return on plan assets -6,243 -5,806
  Recognised actuarial gains/losses (outside the corridor) 16 473
  Recognised past service costs 200 172
  Plan reduction / plan payment gain (loss) -818 -2,158
  Employee contributions -2,247 -2,038
  Pension costs for the period 3,238 3,498
       
       
  Change in defined benefit pension obligation 2010 2011
       
  At 1 January -9,196 -7,759
  Translation differences from foreign plans 259 50
  Pension costs for the period -3,238 -3,498
  Employer contributions paid 4,416 3,567
  Recognised plan liabilities on 31 December -7,759 -7,640
       
  Effective return on plan assets 6.10% 2.60%
  Effective income from plan assets 8.825 -3.765
       
  Calculation principles:    
  Discount rate 2.65% 2.35%
  Expected return on separated assets 4.00% 3.75%
  Expected rate of increase in future compensation levels 2.00% 2.00%
  Expected rate of increase in future pension contribution 0.25% 0.25%
       
  Breakdown of assets, other information    
  Liquid assets 6.10% 1.60%
  Time deposits 28.10% 30.00%
  Investments 39.80% 39.50%
  Real estate 16.90% 18.80%
  Other 9.10% 10.10%
  Total 100.00% 100.00%

Demographic factors

The most important demographic assumptions concern the mortality rate. Mortality rates are applied which take into account the historic trend and expected changes such as an increasing life expectancy. The mortality tables used for the largest Group staff pension fund, which covers all employees in Switzerland, are based on the technical principles of the 2010 Federal Law on Occupational Pensions for Old Age, Survivors and Disability (BVG).

Disclosures of current and prior periods:

  31.12.2007 31.12.2008 31.12.2009 31.12.2010 31.12.2011
           
Present value of pension obligation 164,255 166,871 167,106 179,161 191,211
Fair value of plan assets 167,905 147,083 143,929 146,543 139,978
Plan surplus/deficit 3,650 -19,788 -23,177 -32,618 -51,233
Experience adjustments          
of pension obligation 2,569 1,902 -2,304 3,844 496
of plan assets 10,569 -29 564 -6,700 2,582 -9,571
Adjustment to pension fund obligations based on changed assumptions -7,376 -3,727 - 10,859 7,257

Employer contributions for 2012 are estimated at TCHF 3,820 (previous year: TCHF 3,480).