Airbus 2015 Annual Report Download - page 229

AIRBUS GROUP FINANCIAL STATEMENTS 2015 l 47 l
Notes to the IFRSConsolidatedFinancialStatements
2.
2.6 Employees Costs and Benefits
28. Personnel-Related Provisions
Several German Group companies provide life time working account models, being employee benefit plans with a promised return
on contributions or notional contributions that qualify as other long-term employee benefits under IAS19. The employees’
periodical contributions into their life time working accounts result in corresponding personnel expense in that period, recognised
in other personnel charges.
(In € million)
Balance at
1January
2015 Exchange differences
Increase
from
passage
of time Additions
Reclassification/
Change in
consolidated
group Used Released
Balance at
31December
2015
Restructuring measures/
pre-retirement part-time work 425 1 4 67 (20) (148) (64) 265
Other personnel charges 830 1 1 483 (22) (335) (78) 880
Total 1,255 2 5 550 (42) (483) (142) 1,145
29. Post-Employment Benefits
(In € million) 2015 2014
Provision for retirement plans (see Note29.1) 6,867 7,567
Provision for deferred compensation (see Note29.2) 748 683
Total 7,615 8,250
31December
29.1 Provisions for Retirement Plans
When Group employees retire, they receive indemnities as
stipulated in retirement agreements, in accordance with
regulations and practices of the countries in which the Group
operates.
France — The French pension system is operated on a “pay
as you go” basis. Besides the basic pension from the French
social security system, each employee is entitled to receive a
complementary pension from defined contribution schemes
ARRCO (Association pour le régime de retraite complémentaire
des salaries) and AGIRC (Association générale des institutions
de retraite des cadres). Moreover, French law stipulates that
employees are paid retirement indemnities in the form of lump
sums on the basis of the length of service, which are considered
as defined obligations.
Germany — The Group has a pension plan (P3) for executive
and non-executive employees in place. Under this plan, the
employer provides contributions for the services rendered by
the employees, which are dependent on their salaries in the
respective service period. These contributions are converted
into components which become part of the accrued pension
liability at the end of the year. Total benefits are calculated as
a career average over the entire period of service. Certain
employees that are not covered by this plan receive retirement
indemnities based on salary earned in the last year or on
an average of the last three years of employment. For some
executive employees, benefits are dependent on the final salary
of the respective individual at the date of retirement and the time
period served as an executive.
Parts of the pension obligation in Germany are funded by
assets invested in specific funding vehicles. Besides a relief
fund (“Unterstützungskasse”), the Group has implemented
a Contractual Trust Arrangement. The Contractual Trust
Arrangement structure is that of a bilateral trust arrangement.
Assets that are transferred to the relief fund and the Contractual
Trust Arrangement qualify as plan assets under IAS19.
United Kingdom — The AirbusGroup UK Pension Scheme (“the
Scheme”) was implemented by Airbus Defence and Space Ltd.,
Stevenage (UK) as the principal employer. This plan comprises
all eligible employees of Airbus Defence and Space Ltd. as
well as all personnel, who were recruited by one of the Group
companies located in the UK and participating in the scheme.
The majority of the Scheme’s liabilities relate to Airbus Defence
and Space Ltd. The major part of the obligation is funded
by scheme assets due to contributions of the participating
companies. The Scheme is a registered pension scheme under
the Finance Act2004. The trustee’s only formal funding objective
Financial Statements 2015
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