Chrysler 2009 Annual Report Download - page 204

203
Health care plans
The item Health care plans comprise obligations for health care and insurance plans granted to employees of the Group working in the United States and
Canada (mostly relating to CNH – Case New Holland Sector). These plans generally cover employees retiring on or after reaching the age of 55 who have
had at least 10 years of service. CNH United States salaried and non-represented hourly and Canada employees hired after 1 January 2001 and 1 January
2002, respectively, are not eligible for health care and insurance benefits under the CNH plans. Until 31 December 2006 these plans were fully unfunded;
starting in 2007, the Group began making contributions on a voluntary basis to a separate and independently managed fund established to finance the
North American health care plans.
Other
The item Other includes loyalty bonuses, which are due to employees who reach a specified seniority and are generally settled when an employee leaves the
Group; and for French entities, the Indemnité de depart à la retraite, a plan similar to the Italian TFR. These schemes are unfunded.
Provisions for employee benefits at 31 December 2009 and 2008 are as follows:
(€ million) At 31 December 2009 At 31 December 2008
Post-employment benefits:
Employee severance indemnity 1,086 1,129
Pension Plans 611 616
Health care plans 844 876
Other 242 247
Total Post-employment benefits 2,783 2,868
Other provisions for employees 504 329
Other long-term employee benefits 160 169
Total Provision for employee benefits 3,447 3,366
Defined benefit plan assets 132 108
Total Defined benefits plan assets 132 108
The item Other provisions for employees consists of the best estimate at the balance sheet date of short-term employee benefits payable by the Group within
twelve months after the end of the period in which the employees render the related service.
The item Other long-term employee benefits consists of the Group’s obligation for those benefits generally payable during employment on reaching a certain
level of seniority in the company or when a specified event occurs, and reflects the probability of payment and the length of time over which this will be
made.
In 2009 and in 2008 changes in Other provisions for employees and in Other long-term employee benefits are as follows:
Change in the scope
At 31 December of consolidation At 31 December
(€ million) 2008 Provision Utilisation and other changes 2009
Other provisions for employees 329 363 (152) (36) 504
Other long-term employee benefits 169 11 (20) - 160
Total 498 374 (172) (36) 664