Page 107 - KELAG Annual Report 2019
P. 107

in  excess  of  the  maximum  assessment  base  or  1%  for  remuneration  components  below  the
           maximum assessment base and 5% in excess of the maximum assessment base.





           Based on labour-law obligations, employees who commenced service (in Austria) on or before
           31 December  2002  receive  a  one-off  severance  payment  if  the  employment  relationship  is
           terminated by the employer or upon retirement. The amount of the entitlement depends on the
           number  of  years served  at  the company  and  the remuneration  authoritative  at the time  the
           payment  falls  due. This  obligation  is  calculated  in  accordance  with  the  projected  unit  credit
           method pursuant to IAS 19 with a vesting period of 25 years. Resulting actuarial gains and losses
           are also taken into account in other comprehensive income.

           For all (Austrian) employment relationships commencing after 31 December 2002, employees
           have no direct entitlement to statutory severance payments. For the employees affected by this
           regulation,  the  employer  pays  a  monthly  amount  of  1.53%  of  the  remuneration  into  a  staff
           provision  fund  where  the  contributions  are  deposited  on  an  account  of  the  employee. This
           severance model means that the employer is obliged only to pay the regular contributions, and it
           is recognised as a defined contribution plan pursuant to IAS 19.






           The Group offers “Altersteilzeit” (special phased retirement scheme) models that give employees
           the  option  to  avail  themselves of  a  subsidised  model  before  reaching  the  age  for  a  pension
           entitlement under the ASVG with continued payment of their remuneration until they reach the
           statutory retirement age. The phased retirement model provides for a block model according to
           which the beneficiary works full time for the first 40% of the period from the commencement of
           phased  retirement  and  is  fully  exempted  for  the  remaining  60%  of  the  period.  The  agreed
           remuneration amount during the phased retirement period is 70% of the monthly remuneration
           before commencement of phased retirement.

           In accordance with IAS 19, the projected unit credit method is used to measure the provision
           reported in the statement of financial position, and the remeasurement gain/loss is recognised
           immediately through profit or loss. The measurement parameters correspond essentially to those
           used for obligations similar to pension obligations. The expenses to be recorded as a result are
           largely reported in the income statement under salaries.

           Other provisions are recognised in accordance with the regulations in IAS 37 if the company has
           a legal or constructive obligation to a third party based on a past event and it is probable that this
           obligation will lead to an outflow of resources. It must be possible to make a reliable estimate of
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