Chrysler 2010 Annual Report Download - page 227

FIAT GROUP
CONSOLIDATED
FINANCIAL
STATEMENTS
AT 31 DECEMBER
2010
NOTES
226
The investment strategy for these assets depends on the features of the plan and on the maturity of the obligations. Typically long-term plan benefit
obligations are funded by investing mainly in equity securities, as they are expected to achieve long-term growth while exceeding inflation; short and medium-
term plan benefit obligations are funded by investing in fixed income securities, which are less volatile.
In the United Kingdom the Group participates amongst others in a plan financed by various entities belonging to the Group, called the “Fiat Group Pension
Scheme”. Under this plan, participating employers make contributions on behalf of their active employees (active), retirees, and employees who have left the
Group but have not yet retired (deferred).
Health care plans
The item Health care plans comprise obligations for health care and life insurance plans granted to employees of the Group working in the United States
and Canada (mostly relating to the 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 life 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
company; 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 2010 and 2009 are as follows:
At 31 December 2010 At 31 December 2009
Continuing Discontinued
(€ million) Operations Operations Total Total
Post-employment benefits:
Employee leaving entitlements in Italy 846 208 1,054 1,086
Pension Plans 128 475 603 611
Health care plans 2 859 861 844
Other 113 131 244 242
Total Post-employment benefits 1,089 1,673 2,762 2,783
Other provisions for employees 491 285 776 504
Other long-term employee benefits 124 59 183 160
Total Provision for employee benefits 1,704 2,017 3,721 3,447
Defined benefit plan assets 8 166 174 132
Total Defined benefits plan assets 8 166 174 132
The item Other provisions for employees consists of the best estimate at the balance sheet date of short-term employee benefits payable within twelve
months of the end of the period in which the employees render the related service.
The item Other long-term employee benefits consists of the 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.