FGV Audited Financial Statements 2020

49 PROVISION FOR ASSET RETIREMENT (continued) 2020 RM’000 2019 RM’000 Analysed as: Non-current 32,358 32,124 Current 643 655 33,001 32,779 50 PROVISION FOR DEFINED BENEFIT PLAN The Group operates defined benefit retirement plans in Malaysia, Thailand and Indonesia for all eligible employees. All of the plans are lump sum payments depend on members’ length of service and their salary in the final years leading up to retirement. As the retirement benefit plans are unfunded, the Group meets the defined benefit payment obligations as they falls due. Group Company 2020 RM’000 2019 RM’000 2020 RM’000 2019 RM’000 Non-current - Retirement benefit scheme 37,652 58,001 782 1,586 - Housing assistance scheme 25,597 23,072 - - - Long service award 4,243 6,728 95 120 67,492 87,801 877 1,706 The retirement benefit scheme is a final salary defined benefit plan with a guaranteed lump sum payment at retirement, which remains open to new entrants. The housing assistance scheme is a final salary defined benefit plan with a guaranteed lump sum payment at retirement or at an earlier exit through ill-health retirement or death-in-service in Malaysia, which remains open to new entrants. The long service award is for eligible employees that have served the Group upon attainment of 15, 25 and 35 years of service in Malaysia (2019: 25 years of service). The Group benefit for retirement scheme shall be paid to the employees who reached the compulsory retirement age and have served the Group for at least twenty (20) years of service in Malaysia (2019: follows the Malaysian Minimum Retirement Age Act 2012 at age of 60). However, the normal retirement age for the housing assistance scheme will remain at age 56 which will be payable at attainment of 56 years old, regardless of whether employees continue employment until the minimum retirement age of 60 years old. There will be no benefits payable for services rendered from age 55 to 60. The defined benefit plan for Indonesian subsidiary is described under Indonesian Labour Law No. 13/2003 and the Thailand subsidiary is under the Legal Severance Plan where the companies are required to pay legal severance payments to employees who leave employment at their retirement age, or are terminated by the companies without reason. 171 Notes to the Financial Statements For The Financial Year Ended 31 December 2020 Audited Financial Statements 2020