Page 308 - TSMC 2020 Annual Report

Issuance Tranche
US$ unsecured bonds
109-1 -
Issuance Period
September 2020 to September 2060
Total Amount (US$
in Thousands)
US$1,000,000
Coupon Rate
2.70%
Repayment and Interest Payment
Bullet repayment (callable on the 5th anniversary of the issue date and every anniversary thereafter); interest payable annually
17. RETIREMENTBENEFITPLANS
a. Defined contribution plans
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$2,309,527 thousand and NT$2,063,508 thousand for the years ended December 31, 2020 and 2019, 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.
Amounts recognized in respect of these defined benefit plans were as follows:
Years Ended December 31
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
2020
123,311 81,604 204,915
(139,212) 494,051
- 3,161,910
3,516,749 $ 3,721,664
2019
135,645 123,951 259,596
(124,344) (438,009)
(233,239) 541,697
(253,895) 5,701
$
$
$
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- 37 -