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Retirement Benefit Plans (Tables)
 12 Months Ended
Dec. 31, 2023
Disclosure Of Retirement Benefit Plans [Abstract]  
Amounts Included in Consolidated Balance Sheets from Obligation in Respect of Defined Benefit Plans

The amounts included in the consolidated balance sheets arising from the Company’s obligation in respect of its defined benefit plans were as follows:

 

 

 

December 31

 

 

 

2022

 

 

2023

 

 

 

NT$

 

 

NT$

 

 

 

(In Millions)

 

Present value of funded defined benefit obligations

 

$

33,599

 

 

$

30,313

 

Fair value of plan assets

 

 

(36,580

)

 

 

(34,178

)

Funded status - surplus

 

$

(2,981

)

 

$

(3,865

)

 

 

 

 

 

 

 

Net defined benefit liabilities

 

$

2,285

 

 

$

2,098

 

Net defined benefit assets

 

 

(5,266

)

 

 

(5,963

)

 

 

$

(2,981

)

 

$

(3,865

)
Movements in Defined Benefit Obligation and Fair Value of Plan Assets

Movements in the defined benefit obligations and the fair value of plan assets were as follows:

 

 

 

Present Value
of Funded
Defined Benefit
Obligations

 

 

Fair Value of
Plan Assets

 

 

Net Defined
Benefit
Liabilities
(Assets)

 

 

 

NT$

 

 

NT$

 

 

NT$

 

 

 

 

 

 

(In Millions)

 

 

 

 

Balance on January 1, 2021

 

$

39,536

 

 

$

39,494

 

 

$

42

 

Current service cost

 

 

1,253

 

 

 

—

 

 

 

1,253

 

Interest expense/interest income

 

 

190

 

 

 

195

 

 

 

(5

)

Amounts recognized in profit or loss

 

 

1,443

 

 

 

195

 

 

 

1,248

 

Remeasurement on the net defined benefit liability

 

 

 

 

 

 

 

 

 

Return on plan assets (excluding amounts included in net interest)

 

 

—

 

 

 

501

 

 

 

(501

)

Actuarial gain recognized from changes in demographic assumptions

 

 

(434

)

 

 

—

 

 

 

(434

)

Actuarial loss recognized from experience adjustments

 

 

545

 

 

 

—

 

 

 

545

 

Amounts recognized in other comprehensive income

 

 

111

 

 

 

501

 

 

 

(390

)

Contributions from employer

 

 

—

 

 

 

1,727

 

 

 

(1,727

)

Benefits paid

 

 

(5,312

)

 

 

(5,312

)

 

 

—

 

Benefits paid directly by the Company

 

 

(276

)

 

 

—

 

 

 

(276

)

Balance on December 31, 2021

 

 

35,502

 

 

 

36,605

 

 

 

(1,103

)

Current service cost

 

 

1,085

 

 

 

—

 

 

 

1,085

 

Interest expense/interest income

 

 

171

 

 

 

181

 

 

 

(10

)

Amounts recognized in profit or loss

 

 

1,256

 

 

 

181

 

 

 

1,075

 

Remeasurement on the net defined benefit liability

 

 

 

 

 

 

 

 

 

Return on plan assets (excluding amounts
   included in net interest)

 

 

—

 

 

 

2,968

 

 

 

(2,968

)

Actuarial loss recognized from changes in
   demographic assumptions

 

 

208

 

 

 

—

 

 

 

208

 

Actuarial loss recognized from experience adjustments

 

 

1,606

 

 

 

—

 

 

 

1,606

 

Amounts recognized in other comprehensive income

 

 

1,814

 

 

 

2,968

 

 

 

(1,154

)

Contributions from employer

 

 

—

 

 

 

1,555

 

 

 

(1,555

)

Benefits paid

 

 

(4,729

)

 

 

(4,729

)

 

 

—

 

Benefits paid directly by the Company

 

 

(244

)

 

 

—

 

 

 

(244

)

Balance on December 31, 2022

 

 

33,599

 

 

 

36,580

 

 

 

(2,981

)

Current service cost

 

 

1,006

 

 

 

—

 

 

 

1,006

 

Loss on settlements

 

 

1

 

 

 

—

 

 

 

1

 

Interest expense/interest income

 

 

403

 

 

 

452

 

 

 

(49

)

Amounts recognized in profit or loss

 

 

1,410

 

 

 

452

 

 

 

958

 

Remeasurement on the net defined benefit liability

 

 

 

 

 

 

 

 

 

Return on plan assets (excluding amounts
   included in net interest)

 

 

—

 

 

 

309

 

 

 

(309

)

Actuarial gain recognized from changes in
   financial assumptions

 

 

(100

)

 

 

—

 

 

 

(100

)

Actuarial loss recognized from experience adjustments

 

 

252

 

 

 

—

 

 

 

252

 

Amounts recognized in other comprehensive income

 

 

152

 

 

 

309

 

 

 

(157

)

Contributions from employer

 

 

—

 

 

 

1,386

 

 

 

(1,386

)

Benefits paid

 

 

(4,549

)

 

 

(4,549

)

 

 

—

 

Benefits paid directly by the Company

 

 

(299

)

 

 

—

 

 

 

(299

)

Balance on December 31, 2023

 

$

30,313

 

 

$

34,178

 

 

$

(3,865

)

 
Pension Costs Recognized in Profit and Loss for Defined Benefit Plans

Relevant pension costs recognized in profit and loss for defined benefit plans were as follows:

 

 

 

Year Ended December 31

 

 

 

2021

 

 

2022

 

 

2023

 

 

 

NT$

 

 

NT$

 

 

NT$

 

 

 

(In Millions)

 

Operating costs

 

$

725

 

 

$

565

 

 

$

488

 

Marketing expenses

 

 

367

 

 

 

360

 

 

 

334

 

General and administrative expenses

 

 

80

 

 

 

86

 

 

 

78

 

Research and development expenses

 

 

44

 

 

 

37

 

 

 

35

 

 

 

$

1,216

 

 

$

1,048

 

 

$

935

 
Principal Assumptions Used for Actuarial Valuations

The principal assumptions used for the purpose of the actuarial valuations were as follows:

 

 

 

Measurement Date

 

 

December 31

 

 

2022

 

2023

Discount rates

 

1.25%

 

1.25%

Expected rates of salary increase

 

1.00%-2.25%

 

1.00%-2.25%

 
Effect on Present Value of Defined Benefit Obligation Due to a Reasonably Possible Change of the Significant Actuarial Assumptions

If reasonably possible changes of the respective significant actuarial assumptions occur at the end of reporting periods, while holding all other assumptions constant, the present values of the defined benefit obligations would increase (decrease) as follows:

 

 

 

December 31

 

 

 

2022

 

 

2023

 

 

 

NT$

 

 

NT$

 

 

 

(In Millions)

 

Discount rates

 

 

 

 

 

 

0.5% increase

 

$

(996

)

 

$

(880

)

0.5% decrease

 

$

1,056

 

 

$

932

 

Expected rates of salary increase

 

 

 

 

 

 

0.5% increase

 

$

1,130

 

 

$

1,000

 

0.5% decrease

 

$

(1,075

)

 

$

(953

)
Summary of Sensitivity Analysis

There is no change in the methods and assumptions used in preparing the sensitivity analysis from the previous period.

 

 

December 31

 

 

 

2022

 

 

2023

 

 

 

NT$

 

 

NT$

 

 

 

(In Millions)

 

The expected contributions to the plan for the next
   year

 

$

1,542

 

 

$

1,355

 

The average duration of the defined benefit obligations

 

6.2-11 years

 

 

6.1-10years

 
Maturity Analysis of Undiscounted Benefit Payments

As of December 31, 2023, the Company’s maturity analysis of the undiscounted benefit payments was as follows:

 

Year

 

Amount

 

 

 

NT$

 

 

 

(In Millions)

 

2024

 

$

2,538

 

2025

 

 

5,863

 

2026

 

 

8,865

 

2027

 

 

10,051

 

2028 and thereafter

 

 

34,869

 

 

 

$

62,186