Plan Worldwide Annual Review and Combined Financial ...

10. Pension plans
PI Inc operates two defined contribution pension plans for its expatriate employees, one for US citizens and one for non-US citizens. In addition,
there are a variety of plans for other employees in the 50 developing countries in which PI Inc operates, in the 20 NOs and their subsidiaries and in
Plan Ltd. These pension plans are a mixture of defined contribution pension plans with defined benefit pension plans being operated by 2 NOs.
In all cases, schemes are governed by local statutory regulations and pension fund assets are held independently of Plan’s assets.
Contributions to defined contribution pension plans totalled €4.1 million (2011: €3.3 million).
Funding of the defined benefit pension plans is determined by local pension trustees in accordance with local statutory requirements and local
actuarial advice. The trustees of the defined benefit pension plans consider that their plans are adequately funded. The amount recognised on the
combined statement of financial position in respect of the defined benefit pension plans has been calculated on the basis described in accounting
policy “1m - Non-current liabilities- termination benefits and pension obligations” by independent actuaries.
The amounts recognised in expenditure for defined benefit pension plans are as follows:
2012 2011
€000 €000
Current service cost 503 570
Interest cost 448 397
Return on scheme assets net of administration cost (206) (211)
Past service cost (13) (12)
Actuarial losses 1 21
Other 40 40
Total 773 805
The movement in the net liability recognised in the combined statement of financial position for defined benefit pension plans is as follows:
2012 2011
€000 €000
At 1 July (348) (113)
Total expense (as above) (773) (805)
Contributions paid 580 537
Other 37 34
Currency translation effect (2) (1)
At 30 June (506) (348)
The movement in the present value of the defined benefit obligation is as follows, all arising in plans that are wholly or partly funded:
2012 2011
€000 €000
At 1 July (8,458) (8,850)
Current service cost (503) (570)
Interest cost (448) (397)
Expected employee contributions (116) (112)
Actuarial gain/(loss) (3,423) 1,362
Benefits paid 141 129
Currency translation effect (35) (20)
At 30 June (12,842) (8,458)
The movements in the defined benefit pension plan assets at fair value are as follows:
36