Chrysler 2008 Annual Report Download - page 303

Post-employment benefits and Other long-term employee benefits are calculated on the basis of the following actuarial
assumptions:
At At
31 December 2008 31 December 2007
Discount rate 5.23% 4.66%
Future salary increase rate 2.97% 2.94%
Inflation rate 2.00% 2.00%
Theoretical retirement age Years: 60 (F) - 65 (M) Years: 60 (F) - 65 (M)
Mortality rate SI02 SI02
Average annual departure rate 8.95% 9.30%
The provisions for employee benefits and similar may be summarised as follows:
Employee severance indemnity
The Employee severance indemnity represents the obligation to employees under Italian law (amended by Law 296/06) that has
accrued up to 31 December 2006 and that will be settled when the employee leaves the company. In certain circumstances, a
portion of the accrued liability may be given to an employee during his working life as an advance. This is an unfunded defined
benefit plan, under which the benefits are almost fully accrued, with the sole exception of future revaluations.
Other
The item Other includes post-employment benefits accrued by employees, former employees and the Chief Executive Officer
following additional or individual labour agreements. These schemes are unfunded.
Other long-term employee benefits
This item mainly includes benefits which are due to employees who reach a specified seniority.
Post-employment benefits at 31 December 2008 and 2007 are made up as follows:
Employee severance indemnity Other Total
(€ thousands) At 31 December 2008 At 31 December 2007 At 31 December 2008 At 31 December 2007 At 31 December 2008 At 31 December 2007
Present value of unfunded defined
benefit plan obligations 6,334 6,280 18,679 11,851 25,013 18,131
Unrecognised actuarial gains (losses) 685 (116) (1,876) 412 (1,191) 296
Net liability 7,019 6,164 16,803 12,263 23,822 18,427
Fiat S.p.A. Statutory Financial Statements at 31 December 2008302