214 348
Consolidated Financial Report |
EXPLANATORY NOTES
2014 Annual Report
Prysmian Group
214
The transfer of the liabilities described above means the
Group no longer has to pay into this plan.
The remaining liabilities at 31 December 2014 are fully
covered and so do not represent a risk factor for the
Prysmian Group.
The liabilities and service costs are sensitive to the following
variables: inflation, salary growth, life expectancy of plan
participants and future growth in benefit levels. Another
variable to consider when determining the amount of the
liability is the discount rate, identified by reference to
market yields of AA corporate bonds denominated in Euro.
During 2014 the local legislation regarding pension benefits
underwent significant change. As from 1 January 2014, the
retirement age was raised from 65 to 67, with the contribu-
tion rate going from 2.2% to 1.84%.
Pension plan obligations and assets are analysed as follows
at 31 December 2014:
31 December 2014
Germany
Great Britain The Netherlands Other countries
Total
Funded pension obligations:
Present value of obligation
-
190
27
50
267
Fair value of plan assets
-
(126)
(27)
(38)
(191)
Asset ceiling
-
-
-
-
-
Unfunded pension obligations:
Present value of obligations
167
-
-
32
199
Total
167
64
-
44
275
31 December 2013 (*)
Germany
Great Britain The Netherlands Other countries
Total
Funded pension obligations:
Present value of obligation
-
156
97
45
298
Fair value of plan assets
-
(108)
(99)
(36)
(243)
Asset ceiling
-
-
2
1
3
Unfunded pension obligations:
Present value of obligations
143
-
-
29
172
Total
143
48
-
39
230
(*) The previously published prior year consolidated financial statements have been restated following the adoption of IFRS 10 and IFRS 11. Further details can
be found in Section C. Restatement of comparative figures.
At 31 December 2014, “Other countries” mainly refer to:
• United States: funded pension obligations have a present
value of Euro 31 million compared with a fair value of
Euro 23 million for plan assets;
• Norway: funded pension obligations have a present value
of Euro 3 million compared with a fair value of Euro 1
million for plan assets;
• Canada: funded pension obligations have a present value
of Euro 10 million compared with a fair value of Euro 9
million for plan assets;
• France: pension obligations have a present value of Euro
24 million compared with a fair value of Euro 3 million for
plan assets;
• Sweden: unfunded pension obligations have a present
value of Euro 8 million.
(in millions of Euro)
(in millions of Euro)