SEC Form 20-IS - iRemit Global Remittance

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The Group’s objective is to ensure that there are no known events that may trigger direct or
contingent financial obligation that is material to the Company, including default or acceleration
of an obligation.
The Group is not subject to externally imposed capital requirements.
18. Retirement Plan
The Parent Company has a noncontributory defined benefit retirement plan covering substantially
all of its regular employees. Under this retirement plan, all qualified employees are entitled to
cash benefits after satisfying age and service requirements.
Provisions for pension obligations are established for benefits payable in the form of retirement
pensions. Benefits are dependent on years of service and the respective employee’s latest monthly
salary.
The Parent Company determined its transitional liability for defined benefit retirement plan merely
as the present value of the obligation since the Parent Company had no plan assets at the date of
the adoption. Transitional liability is amortized prospectively over five (5) years starting on
January 1, 2005.
The latest actuarial valuation report on the retirement plan is dated December 31, 2011.
The principal actuarial assumptions used in determining the retirement liability of the Parent
Company as of January 1, 2011 and 2010 follow:
2011 2010
Discount rate 9.69% 11.25%
Future salary increases 8.00% 9.00%
Expected return on plan assets 6.00% 6.00%
Average remaining working life (in years) 32.1 31.8
The discount rates used to arrive at the present value of the obligation as of December 31, 2011
and 2010 are 6.70% and 9.69%, respectively.
The amounts recognized in the consolidated balance sheets follow:
2011 2010
Present value of obligation P=22,524,680 P=21,847,360
Fair value of plan assets 21,816,324 15,196,930
Deficit 708,356 6,650,430
Unrecognized actuarial loss (1,076,750) (5,872,169)
Retirement (asset) liability (P=368,394) P=778,261
*SGVMC116502*