LARFAGE is French industrial company specializing in three major products: cement, construction aggregates, and concrete. Lafarge Zambia operates 2 integrated cement plants (situated in Ndola and Lusaka) with a total production capacity of 1.4 million tonnes per annum. The 440 direct employees supported by several hundred more contracted employees. As the key enablers of its strategy and vision, its people are at the heart of everything the company does. The Lafarge Group aspires to build and sustain a Learning Organization focused on achieving sustainable transfer of knowledge, skills, and behaviors. Further the company ensures that its employee’s social security protection is done especially after, retirement. In line with this, LARFAGE introduced a defined benefit pension plan for its employees, on January 1, 2019. This pension is managed by ZSIC Life. ZSIC has provided the following selected data for the years 2019, 2020, and 2021.
2019 |
2020 |
2021 |
|
For the year ended December 31 |
|||
Plan assets at fair valua |
100,000 |
170,000 |
360,000 |
Defined benefit obligation |
120,000 |
400,000 |
648,000 |
Employers funding contribution |
100,000 |
120,000 |
210,000 |
actual return on plan assets |
10% |
10% |
10% |
discount (interest) |
13% |
11% |
8% |
service cost ( net periodic pension expense) |
120,000 |
170,000 |
238,000 |
Benefits paid |
- |
60,000 |
37,000 |
LARFAGE amended the pension plan on January 1, 2020, to grant employees past service benefits with a present value of K80, 000.At the end of the year 2020 Changes in actuarial assumptions establish the end-of-year defined benefit obligation at K650, 000.
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LARFAGE is French industrial company specializing in three major products: cement, construction aggregates, and concrete. Lafarge...
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