ST Engineering Annual Report 2020

NOTES TO THE FINANCIAL STATEMENTS 31 DECEMBER 2020 (CURRENCY – SINGAPORE DOLLARS UNLESS OTHERWISE STATED) D3 Post-employment benefits (continued) 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 2020 2019 % % Discount rate 1.7 2.3 Future salary growth 3.2 3.2 Future pension growth 2.0 2.5 Assumptions regarding future mortality have been based on published statistics and mortality tables. The current longevities underlying the values of the defined benefit obligation at the reporting date were as follows: Group 2020 2019 Germany U.S. Germany U.S. Longevity at age 65 for current pensioners: Males 20.3 19.4 20.3 19.6 Females 23.8 21.4 23.8 21.6 Longevity at age 65 for current members aged 45: Males 23.1 19.9 23.1 20.1 Females 26.0 22.1 26.0 22.4 At 31 December 2020, the weighted average duration of the defined benefit obligation was 25.4 years (2019: 24.2 years) for the subsidiaries in Germany and 14.6 years (2019: 13.1 years) for the subsidiary in United States of America. 23 3 ANNUAL REPORT 2 0 2 0 / CORPORATE OVERVI EW PERFORMANCE REVI EW SUSTAINABI L ITY CORPORATE GOVERNANCE F INANCIAL REPORT