NTUC Income AR 2017

NOTES TO THE FINANCIAL STATEMENTS FOR THE FINANCIAL YEAR ENDED 31 DECEMBER 2017 26. RELATED PARTY TRANSACTIONS (CONTINUED) (a) Sales and purchases of goods and services (continued) The Group 2017 $'000 2016 $'000 Purchases of goods / rental / management of investment properties with – Parent (1,744) (1,588) – Subsidiaries (401) (299) – Associated companies (940) (1,103) – Other related parties (1,838) (2,259) (4,923) (5,249) Dividends to – Parent (19,835) (17,097) Other related parties comprise mainly entities which are members of the NTUC Enterprise Co-operative Limited group. (b) Key management personnel compensation The Group 2017 $'000 2016 $'000 Salaries and other benefits 8,062 7,101 Employer’s contribution to defined contribution plan 186 156 Directors’ and external members’ fees 864 549 9,112 7,806 27. DIVIDENDS 2017 $'000 2016 $'000 Ordinary dividends paid Final exempt dividend paid in respect of the previous financial year of 60 cents (2016: 60 cents) 37,844 34,767 The Directors have proposed a dividend of 60 cents (2016: 60 cents) per share, amounting to $52,685,000 (2016: $39,471,000) to be paid in respect of the financial year ended 31 December 2017. The financial statements will reflect this dividend payable in the Shareholders’ Fund as an appropriation of surplus in the year ending 31 December 2018 after approval is obtained during the Annual General Meeting. 28. ACCUMULATED SURPLUS OF LIFE INSURANCE PAR FUND In accordance with regulations, a surplus account is maintained whereby surpluses not transferred to the shareholders’ fund are retained in the surplus account to strengthen the Life Insurance Par Fund. The quantum retained in the surplus account is approved by the Board on the recommendation of the appointed actuary. ANNUAL REPORT 2017 EVERY DAY MADE DIFFERENT 121