Page 196 - TSMC 2019 Annual Report

The major terms of overseas unsecured bonds are as follows:
Total Amount (US$
Issuance Period in Thousands)
April 2013 to April 2018 US$1,150,000
19. RETIREMENTBENEFITPLANS
a. Defined contribution plans
Coupon Rate
1.625%
Repayment and Interest Payment
Bullet repayment; interest payable semi-annually
The plan under the R.O.C. Labor Pension Act (the “Act”) is deemed a defined contribution plan. Pursuant to the Act, TSMC and VisEra Tech have made monthly contributions equal to 6% of each employee’s monthly salary to employees’ pension accounts. Furthermore, TSMC North America, TSMC China, TSMC Nanjing, TSMC Europe, TSMC Canada and TSMC Technology also make monthly contributions at certain percentages of the basic salary of their employees. Accordingly, the Company recognized expenses of NT$2,609,733 thousand and NT$2,568,945 thousand for the years ended December 31, 2019 and 2018, respectively.
b. Defined benefit plans
TSMC 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.
Amounts recognized in respect of these defined benefit plans were as follows:
Current service cost
Net interest expense
Components of defined benefit costs recognized in profit or loss Remeasurement on the net defined benefit liability:
Return on plan assets (excluding amounts included in net interest expense)
Actuarial loss (gain) arising from experience adjustments Actuarial gain arising from changes in demographic
assumptions
Actuarial loss arising from changes in financial assumptions
Components of defined benefit costs recognized in other comprehensive income
Total
$
2019
135,645 123,951 259,596
(124,344) (438,009)
(233,239) 541,697
(253,895) 5,701
2018
137,758 144,108 281,866
(71,288) 334,630
-
597,820
861,162 $ 1,143,028
Years Ended December 31
$
$
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