NOTES TO THE FINANCIAL STATEMENTS 31 DECEMBER 2022 (CURRENCY - SINGAPORE DOLLARS UNLESS OTHERWISE STATED) D3 Post-employment benefits (continued) Movement in net defined benefit liability/(asset) (continued) The fair value of plan assets in each category are as follows: Group 2022 $’000 2021 $’000 Equity securities 100,675 133,996 Government bonds 167,158 27,266 Corporate bonds – 167,614 Derivatives 267 355 Cash/money markets – 4,979 Property occupied by the Group 37,519 48,516 Funds managed by a trustee 2,411 2,514 Funds with insurance companies 14,588 22,677 Fair value of plan assets 322,618 407,917 All equity securities and government bonds have quoted prices in active markets. All government bonds have an average rating of A+. In the case of the funded plans, the Group ensures that the investment positions are managed within an assetliability matching (ALM) framework that has been developed to achieve long-term investments that are in line with the obligations under the pension schemes. Within this framework, the Group’s ALM objective is to match assets to the pension obligations by investing in long-term fixed interest securities with maturities that match the benefit payments as they fall due and in the appropriate currency. Defined benefit obligation (a) Actuarial assumptions The following relates to the actuarial assumptions of significant post-employment defined benefit plans for subsidiaries in Germany and United States of America. The remaining defined benefit plans are not material to the Group and additional disclosures are not shown at the reporting date. The following were the principal actuarial assumptions at the reporting date (expressed as weighted averages): Group 2022 % 2021 % Discount rate 4.2 2.0 Future salary growth 3.4 3.2 Future pension growth 2.4 2.0 220 ST ENGINEERING ANNUAL REPORT 2022
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