Page 306 - TSMC 2018 Annual Report

Issuance Tranche
102-4 D
Issuance Period
September 2013 to March 2021
Total Amount
Coupon Rate
1.85%
2.05% 2.10%
Repayment and Interest Payment
Bullet repayment; interest payable annually (interest for the six months prior to maturity will accrue on the basis of actual days and be repayable at maturity)
The same as above
Bullet repayment; interest payable annually
(Concluded)
E September 2013 to March 2023
F September 2013 to September 2023
18. RETIREMENTBENEFITPLANS
a. Defined contribution plans
$
2,600,000
5,400,000 2,600,000
The plan under the R.O.C. Labor Pension Act (the “Act”) is deemed a defined contribution plan. Pursuant to the Act, the Company has made monthly contributions equal to 6% of each employee’s monthly salary to employees’ pension accounts. Accordingly, the Company recognized expenses of NT$2,028,928 thousand and NT$1,905,444 thousand for the years ended December 31, 2018 and 2017, respectively.
b. Defined benefit plans
The Company has defined benefit plans under the R.O.C. Labor Standards Law that provide benefits based on an employee’s length of service and average monthly salary for the six-month period prior to retirement. The Company contributes an amount equal to 2% of salaries paid each month to their respective pension funds (the Funds), which are administered by the Labor Pension Fund Supervisory Committee (the Committee) and deposited in the Committee’s name in the Bank of Taiwan. Before the end of each year, the Company assesses the balance in the Funds. If the amount of the balance in the Funds is inadequate to pay retirement benefits for employees who conform to retirement requirements in the next year, the Company is required to fund the difference in one appropriation that should be made before the end of March of the next year. The Funds are operated and managed by the government’s designated authorities; as such, the Company does not have any right to intervene in the investments of the Funds.
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