Chrysler 2008 Annual Report Download - page 183

Changes in the present value of Post-employment obligations are as follows:
Employee severance indemnity Pension Plans Health care plans Other
(€ millions) 2008 2007 2008 2007 2008 2007 2008 2007
Present value of obligation at the beginning of the year 1,133 1,362 2,730 3,107 817 1,109 279 278
Current service cost ––37 32 5814 11
Interest costs 53 50 147 152 48 57 14 12
Contribution by plan participants ––5733––
Actuarial losses (gains) generated (17) (49) (262) (187) (13) (206) (9) (2)
Exchange rate differences ––(218) (209) 40 (97) (3) (1)
Benefits paid (100) (148) (163) (166) (52) (58) (35) (30)
Past service cost ––––––21 11
Change in scope of consolidation 33 44 10 –––(3) –
(Gains) Losses on curtailments –(117) (2) (1) –1(6) (3)
(Gains) Losses on settlements –––(2) ––––
Other changes (40)(9)(17) (3) ––63
Present value of obligation at the end of the year 1,062 1,133 2,267 2,730 848 817 288 279
The past service cost arising during the year in relation to Other benefits regards a change made to French regulations of the
Indemnité de depart à la retraite plan (the National Interprofessional Agreement – ANI), which led to an increase in the minimum
amount due to employees in the case of voluntary resignation. The increased benefit payable to employees for this matter is being
amortised as an expense over the average service period of the employees to whom the agreement relates. The law introducing the
Indemnité de départ à la retraite had already been amended in 2007, with the changes reflected as past service cost in the
variations of the present value of the obligation being recognised in income as they accrue over a period of approximately 15
years.
The changes in legislation introduced in 2007 regarding the Employee severance indemnity led to a reduction in the present value
of the obligation at 1 January 2007 by a total of €117 million; the income from this reduction was offset in 2007 by the immediate
recognition in the income statement of the unrecognised actuarial losses of €91 million at 31 December 2006, with the result that
net income of €26 million arising from the reduction was recognised in that year.
Changes in the fair value of plan assets are as follows:
Pension Plans Health care plans
(€ millions) 2008 2007 2008 2007
Fair value of plan assets at the beginning of the year 2,036 2,176 47 –
Expected return on plan assets 151 155 61
Actuarial gains (losses) generated (425) (44) (17) (1)
Exchange rate differences (208) (181) 3(4)
Contribution by employer 139 75 49 106
Contribution by plan participants 5733
Benefits paid (150) (152) (52) (58)
Change in scope of consolidation 7–––
(Gains) losses on settlements –(1) ––
Other changes (1) 1––
Fair value of plan assets at the end of the year 1,554 2,036 39 47
Fiat Group Consolidated Financial Statements at 31 December 2008182