Discount rate at 31 December
2.50 - 4.90
Future salary increases
0 - 2.00
Future pension increases
N otes to the Financial Statements
Year ended 31 December 2010
PSA International Pte Ltd Annual Report 2010
Principal actuarial assumptions at the reporting dates (expressed as weighted averages):
2009 % p.a.
2010 % p.a.
Group 2008 $’000
Present value of recognised defined benefit obligations
Experience adjustments arising on plan liabilities
Assumptions regarding future mortality are based on published statistics and mortality tables. The average life expectancy of an individual retiring between age 60 to 65 is 23 for males and 27 for females.
Past service costs and net actuarial results are amortised over the estimated service life of the employees under plan benefits.
The Group expects to pay $1.7 million in contributions to defined benefits plans in 2011.
Equity compensation benefits
The PSA Employee Share Option Plan (the Plan) in relation to shares of a subsidiary was approved and adopted by its then members at an Extraordinary General Meeting in March 2001.
In the event of an initial public offering of the shares of the subsidiary, certain employees may be allotted a number of share options based on the monetary value of the underlying shares at the initial public offering price. The options shall vest one year after any such initial public offering of the shares of the subsidiary. No options have been granted since the commencement of the Plan.