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CONSOLIDATED FINANCIAL REPORT | EXPLANATORY NOTES
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Pension plan amendments in 2015
During 2015 there were no significant amendments to existing pension plans.
PENSION PLANS
Pension plans relate to defined benefit pension schemes that can be "Funded" and "Unfunded”.
Pension plan liabilities are generally calculated according to employee length of service with the company
and the remuneration paid in the period preceding cessation of employment.
Liabilities for "Funded pension plans" are funded by contributions made by the employer and, in some cases,
by employees, into a separately managed pension fund. The fund independently manages and administers
the amounts received, investing in financial assets and paying benefits directly to employees. The Group's
contributions to such funds are defined according to the legal requirements established in individual
countries.
Liabilities for "Unfunded pension plans" are managed directly by the employer who sees to providing the
benefits to employees. These plans have no assets to cover the liabilities.
At 31 December 2015, the most significant plans in terms of accrued employee benefit liabilities are those
managed in the following countries:
Germany;
Great Britain;
France.
Pension plans in the above countries account for approximately 80% of the related liability. The principal
risks to which they are exposed are described below:
Germany
There are thirteen pension plans in Germany. These are mostly final salary plans in which the retirement age
is generally set at 65. Although most plans are closed to new members, additional costs may need to be
recognised in the future. As at 31 December 2015, the plans had an average duration of 15.4 years (15.7
years at 31 December 2014).
Total plan membership is made up as follows:
The German plans do not have any assets that fund the liabilities, in line with the practice in this country; the
Prysmian Group pays these benefits directly.
The benefits payable in 2016 will amount to Euro 6 million (the same as in 2015).
The increase in benefits, and so in the recorded liability and in service costs, will mainly depend on inflation,
salary growth and the life expectancy of plan members. Another variable to consider when determining the