Retirement benefit plan (Tables)

12 Months Ended

Dec. 31, 2017

Defined benefit pension plan amounts recognized in the balance sheet and statement of income

The following table sets forth the status of the defined benefit pension plan and the amount that should be recognized in the balance sheet:

	For the Years Ended December 31,
in CHF thousands	2017		2016		2015
Defined benefit obligation	(14,278	)	(11,596	)		(9,439	)
Fair value of plan assets	9,352		7,798			6,652
Total liability	(4,926	)	(3,798	)		(2,787	)

The following amounts have been recorded as net pension cost in the statement of income:

	For the Years Ended December 31,
in CHF thousands	2017			2016			2015
Service cost		912			742			641
Interest cost		81			75			101
Interest income		(55	)		(56	)		(76	)
Impact of plan amendment		-			-			(584	)
Net pension cost		938			761			82

Changes in defined benefit obligation, fair value of plan assets and unrecognized (gains) / losses

The changes in defined benefit obligation, fair value of plan assets and unrecognized (gains) / losses are as follows:

A.	Change in defined benefit obligation

in CHF thousands	2017			2016			2015
Defined benefit obligation as of January 1		(11,596	)		(9,439	)		(8,091	)
Service cost		(912	)		(742	)		(641	)
Interest cost		(81	)		(75	)		(101	)
Change in demographic assumptions		—			(389	)		—
Change in financial assumptions		—			(26	)		(591	)
Other actuarial gains / (losses)		(735	)		(378	)		(176	)
Plan amendment		—			—			584
Benefit payments		(426	)		(111	)		(48	)
Employees’ contributions		(528	)		(436	)		(375	)
Defined benefit obligation as of December 31		(14,278	)		(11,596	)		(9,439	)

B.	Change in fair value of plan assets

in CHF thousands	2017			2016		2015
Fair value of plan assets as of January 1		7,798			6,652		5,681
Interest income		55			56		76
Employees’ contributions		528			436		375
Employer’s contributions		590			511		441
Benefits payments		426			111		48
Plan assets gains/(losses)		(45	)		32		31
Fair value of plan assets as of December 31		9,352			7,798		6,652

Employer’s contribution to the pension plan for the financial year 2018 are estimated to be CHF 630 thousand.

C.	Change in net defined benefit liability

in CHF thousands	2017			2016			2015
Net defined benefit liabilities as of January 1		3,798			2,787			2,410
Net pension cost through statement of income		938			761			82
Re-measurement through other comprehensive income		780			761			736
Employer’s contribution		(590	)		(511	)		(441	)
Net defined benefit liabilities as of December 31		4,926			3,798			2,787

Actuarial assumptions and sensitivity analysis

The actuarial assumptions used for the calculation of the pension cost and the defined benefit obligation of the defined benefit pension plan for the year 2017, 2016 and 2015 are as follows:

	For the Years Ended December 31,
	2017			2016			2015
Discount rate		0.70	%		0.70	%		1.25	%
Rate of future increase in compensations		1.50	%		1.50	%		1.50	%
Rate of future increase in current pensions		0.50	%		0.50	%		0.50	%
Mortality and disability rates	BVG 2015G			BVG 2015G			BVG 2010G

A quantitative sensitivity analysis for significant assumption as of December 31, 2017 is as shown below:

		Discount rate				Future salary increase					Future pension cost
Assumptions		+0.5% increase	-0.5% decrease			+0.5% increase			-0.5% decrease		+0.5% increase			-0.5% decrease
	in CHF thousands
Defined benefit obligation		12,707		15,849			14,449			14,121		14,989			13,564
Impact on the net defined benefit obligation		1,571		(1,571	)		(171	)		157		(711	)		714