Page 95 - Annual_Report_2016
P. 95
aia.gr Annual Report 2016
5.21 Employee retirement benefits
In accordance with Greek labour law, employees are entitled to compensation payments in the event of
dismissal or retirement with the amount of payment varying depending on the employee’s compensation,
length of service and manner of termination (dismissal or retirement). Employees who resign or are
dismissed with cause are not entitled to termination payments. The amount payable in the event of
retirement is equal to 40.0% of the amount which would be payable upon dismissal without cause.
The provision for employees’ retirement benefits is reflected in the attached statement of financial position
in accordance with IAS 19R and is calculated, as at the balance sheet date (31 December 2016), based on an
independent actuarial study performed by Hewitt.
The results of any valuation depend upon the assumptions employed. Thus, as at 31 December 2016:
• If the discount rate used were 1.0% higher, then the DBO would be lower by about €1.54m.
• If the discount rate used were 1.0% lower, then the DBO would be higher by about €1.91m.
The results of the actuarial study for the provision for employee retirement benefits as computed by the
actuary are shown below:
Financial Statements as at 31 December 2016 (Amounts in Euros unless otherwise stated)
48 of 57
5.21 Employee retirement benefits
In accordance with Greek labour law, employees are entitled to compensation payments in the event of
dismissal or retirement with the amount of payment varying depending on the employee’s compensation,
length of service and manner of termination (dismissal or retirement). Employees who resign or are
dismissed with cause are not entitled to termination payments. The amount payable in the event of
retirement is equal to 40.0% of the amount which would be payable upon dismissal without cause.
The provision for employees’ retirement benefits is reflected in the attached statement of financial position
in accordance with IAS 19R and is calculated, as at the balance sheet date (31 December 2016), based on an
independent actuarial study performed by Hewitt.
The results of any valuation depend upon the assumptions employed. Thus, as at 31 December 2016:
• If the discount rate used were 1.0% higher, then the DBO would be lower by about €1.54m.
• If the discount rate used were 1.0% lower, then the DBO would be higher by about €1.91m.
The results of the actuarial study for the provision for employee retirement benefits as computed by the
actuary are shown below:
Financial Statements as at 31 December 2016 (Amounts in Euros unless otherwise stated)
48 of 57
