15 Employee Benefits

Defined benefit plans

In September 2010, the Swiss Life Group announced an amendment of the terms of two major defined benefit plans in Switzerland. The amendments mainly relate to old age pension benefits that changed from benefit-oriented to contribution-oriented, changes in the level of certain long-term death and disability benefits, and a reduction in benefits for early retirements. In January 2011, CHF 684 million in cash was transferred from the Swiss Life Group to these defined benefit plans. The investment risks are now borne by the plan participants themselves whereas mortality and disability risks are still reinsured with the Swiss Life Group.

Amounts recognised in the consolidated balance sheet
In CHF million  
  30.06.2011 31.12.2010
Present value of defined benefit obligation
  –2 411 –2 370
Fair value of plan assets
  967 289
Unrecognised actuarial gains (–)/losses (+)
  323 284
Net defined benefit asset (+)/liability (–)
  –1 121 –1 797
 
The net defined benefit asset/liability consists of
 
gross defined benefit liabilities
  –1 251 –1 965
gross defined benefit assets
  130 168
 
Amount of insurance contracts not included in plan assets
  1 387 2 137


Employee Benefit liabilities
In CHF million  
  30.06.2011 31.12.2010
Employee benefit liabilities consist of
 
gross defined benefit liabilities
  1 251 1 965
other long-term employee benefit liabilities
  0 0
other employee benefit liabilities
  69 84
Total employee benefit liabilities
  1 320 2 049


Amounts recognised in the consolidated statement of income
In CHF million  
  2011 HY 2010 HY
Current service cost
  36 35
Interest cost
  35 36
Expected return on plan assets
  –17 –6
Net actuarial gains (–)/losses (+)
  4 4
Employee contributions
  –14 –12
Total defined benefit expense
  44 57


 
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