CONSOLIDATED FINANCIAL STATEMENTS >
EXPLANATORY NOTES
204
| 2013 ANNUAL REPORT | PRYSMIAN GROUP
The obligation in respect of medical benefit plans is analysed as follows:
The actuarial assumptions used to value medical benefit plans are as follows:
The following table presents a sensitivity analysis of the effects of an increase/decrease in the most significant actuarial
assumptions used to determine the present value of benefit obligations, such as the interest rate, inflation rate/growth in
medical care costs and life expectancy.
(in millions of Euro)
2013
2012
Opening balance
28
26
Personnel costs
1
1
Interest costs
1
1
Actuarial (gains)/losses recognised in equity - Salary increase assumptions
(2)
(1)
Actuarial (gains)/losses recognised in equity - Demographic assumptions
1
(1)
Actuarial (gains)/losses recognised in equity - Financial assumptions
(4)
3
Disbursements
(1)
(1)
Currency translation differences
(1)
-
Total movements
(5)
2
Closing balance
23
28
31 December 2013
Interest rate
5.63%
Inflation rate
4.46%
Expected future salary increase
3.00%
Increase in claims
5.42%
Life expectancy at age 65:
Male
Female
People currently aged 65
19.16
21.17
People currently aged 50
19.37
21.29
31 December 2013
decrease - 0.50%
increase + 0.50%
Interest rate
+7.40%
-6.62%
decrease - 0.25%
increase + 0.25%
I
nflation rate
-3.22%
+3.54%
31 December 2013
1-year increase in life expectancy
+4.27%
