PARTNER COMMUNICATIONS CO LTD | CIK:0001096691 | 3

  • Filed: 3/29/2018
  • Entity registrant name: PARTNER COMMUNICATIONS CO LTD (CIK: 0001096691)
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  • SEC filing page: http://www.sec.gov/Archives/edgar/data/1096691/000117891318001012/0001178913-18-001012-index.htm
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    • ifrs-full:DisclosureOfEmployeeBenefitsExplanatory

    NOTE 16 - LIABILITY FOR EMPLOYEE RIGHTS UPON RETIREMENT

    Israeli labor laws and agreements require payment of severance pay upon dismissal of an employee or upon termination of employment in certain other circumstances. See also note 2(k).

    (1)
    Defined contribution plan
     
    The Group had contributed NIS 15 million, NIS 14 million, NIS 17 million for the years 2015, 2016 and 2017 respectively, in accordance with Section 14 of the Israeli Severance Pay Law. See also note 2(k)(i)(1).

    (2)
    Defined benefit plan
     
    Liability for employee rights upon retirement, net is presented as non-current liability.
     
    The amounts recognized in the statement of financial position, in respect of a defined benefit plan (see note 2(k)(i)(2)) and changes during the year in the obligation recognized for post-employment defined benefit plans were as follows:

       
    New Israeli Shekels in millions
    		  
       
    Present value of obligation
    		    
    Fair value of plan assets
    		    
    Total
    		  
    At January 1, 2016
    		    
    133
    		      
    (99
    )
    		    
    34
    		  
    Current service cost 
    		    
    17
    		              
    17
    		  
    Interest expense (income)
    		    
    5
    		      
    (3
    )
    		    
    2
    		  
    Employer contributions
    		            
    (12
    )
    		    
    (12
    )
    Benefits paid
    		    
    (19
    )
    		    
    9
    		      
    (10
    )
    Remeasurements:
    		                        
    Experience loss
    		    
    9
    		              
    9
    		  
    Loss (gain) from change in demographic assumptions
    		    
    (4
    )
    		            
    (4
    )
    Loss from change in financial assumptions
    		    
    1
    		              
    1
    		  
    Return on plan assets
    		            
    2
    		      
    2
    		  
    At December 31, 2016
    		    
    142
    		      
    (103
    )
    		    
    39
    		  
    Current service cost 
    		    
    11
    		              
    11
    		  
    Past service cost
    		    
    4
    		              
    4
    		  
    Interest expense (income)
    		    
    4
    		      
    (3
    )
    		    
    1
    		  
    Employer contributions
    		            
    (9
    )
    		    
    (9
    )
    Benefits paid
    		    
    (25
    )
    		    
    17
    		      
    (8
    )
    Remeasurements:
    		                        
    Experience loss
    		    
    2
    		              
    2
    		  
    Loss (gain) from change in financial assumptions
    		    
    1
    		              
    1
    		  
    Return on plan assets
    		            
    (1
    )
    		    
    (1
    )
    At December 31, 2017
    		    
    139
    		      
    (99
    )
    		    
    40
    		  

    Remeasurements are recognized in the statement of comprehensive income.
     
    The expected contribution to the defined benefit plan during the year ending December 31, 2018 is approximately NIS 10 million.
     
    The principal actuarial assumptions used were as follows:

       
    December 31
    		  
       
    2016
    		    
    2017
    		  
    Interest rate weighted average
    		    
    2.95
    %
    		    
    2.73
    %
    Inflation rate weighted average
    		    
    1.04
    %
    		    
    1.11
    %
    Expected turnover rate
    		    
    9%-56
    %
    		    
    9%-56
    %
    Future salary increases
    		    
    1%-6
    %
    		    
    1%-6
    %

    The sensitivity of the defined benefit obligation to changes in the principal assumptions is:

       
    December 31, 2017
    		  
       
    NIS in millions
    		  
       
    Increase of 10% of the assumption
    		    
    Decrease of 10% of the assumption
    		  
    Interest rate
    		    
    (0.6
    )
    		    
    0.8
    		  
    Expected turnover rate
    		    
    0.2
    		      
    (0.3
    )
    Future salary increases
    		    
    0.4
    		      
    (0.4
    )
     
    The above sensitivity analyses are based on a change in an assumption while holding all other assumptions constant. In practice, this is unlikely to occur, and changes in some of the assumptions may be correlated. When calculating the sensitivity of the defined benefit obligation to significant actuarial assumptions the same method has been applied as when calculating the pension liability recognized within the statement of financial position. The methods and types of assumptions used in preparing the sensitivity analysis did not change compared to the previous period.

    The defined benefit plan exposes the Group to a number of risks, the most significant are asset volatility, and a risk that salary increases will be higher than expected in the actuarial calculations. The assets are invested in provident funds, managed by managing companies and are subject to laws and regulations, and supervision (including investment portfolio) of the Capital Markets, Insurance and Saving Division of the Israeli Ministry of Finance.

    Expected maturity analysis of undiscounted defined benefits as at December 31, 2017:

       
    NIS in millions
    		  
     2018
    		    
    24
    		  
     2019
    		    
    20
    		  
     2020
    		    
    11
    		  
     2021 and 2022
    		    
    20
    		  
     2023 and thereafter
    		    
    83
    		  
         
    158