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DKSH Annual Report 2023 95derfunded, the monthly contribution amounts are increased starting at the beginning of the following year. The pension plan has a technical funding ratio of 135.0% as of December 31, 2023 (2022: 138.0%), and thus it is not expected that additional contributions will be required in the next year.Defined Benefit Plan in TaiwanThe defined benefit plan in Taiwan is governed under the Labor Standards Act. The pension plan covers all employees. The pension payable is calculated as percentage of contributory salary whereof a portion is paid into a fund kept on the employee%u2019s account with the Labor Bureau. Contributions to the plan are paid by the employees and the employer. The benefits of the plan participants include re,tirement benefits. The plan provides a lifetime pension to members at retirement age of 65 years. At retirement, a portion or the full amount can be taken as a lump sum payment. The accumulated savings balance, which corresponds to the pension payable, is based on the contributory salary percentages of each individual plan participant, as well as the interest accrued on the accumulated balances. As the contributions are in accordance with Taiwanese law, it is not expected that additional contributions will be required in the next year. Defined Benefit Plan in PhilippinesThe defined benefit plan in the Philippines is governed under the Philippine statute covering pension mandates and exceeds the minimum benefit requirements under Philippine labor law. The plan is managed by a separate autonomous unit. The pension plan covers all employees. Contributions to the plan are paid by the employer. The contribution is calculated as a percentage of basic salary for all employees. This contribution covers benefits paid out in the event of retirement, death, illness or disability. The plan provides a lump sum payment to members at the retirement age of 60. The amount of pension payable is calculated based on the conversion rate of final salary and years in service at the retirement date. There is no provision for funding levels under Philippine law. As of December 31, 2023 and 2022, respectively, the pension fund had a net surplus and thus additional contributions are not expected to be made next year.Defined Benefit Plan in ThailandThe defined benefit plan in Thailand is governed under the Labor Protection Act (No. 7) B.E. 2562 (2019) and exceeds the minimum benefit requirements under Thai pension law. According to local law, no funding of the pension liability is required. The individual pension payable is calculated based on the employee%u2019s length of service under the severance pay plan and for the gratuity pay plan, applicable for employees with employment commencement date before October 1, 2017, one-quarter of the last month%u2019s basic salary times the number of service years for each full year served. The maximum number of accumulating service years under the severance pay plan is limited to 20 years. The benefits of the plan participants include retirement benefits and retrenchment. The plan provides a lump sum payment based on the last drawn basic monthly salary at the retirement age from 55 to 60 years.