Chrysler 2011 Annual Report Download - page 309

Fiat S.p.A.
Statutory
Financial
Statements
at 31 December
2011
Notes
308
Calculations for post-employment benefits and other long-term employee benefits are based on the following actuarial assumptions:
31 December 2011 31 December 2010
Discount rate 3.90% 3.83%
Rate of future salary increases 3.20% 2.06%
Inflation rate 2.00% 2.00%
Maximum retirement age Years: 60(F)/65(M) Years: 60(F)/65(M)
Mortality rate SI08 SI02
Average rate of annual departures 10.45% 9.34%
Provisions for employee benefits and similar relate to the following:
Leaving entitlement (TFR)
The provision for leaving entitlements (TFR) represents benefits payable to employees under Italian law (amended by Law 296/06) accrued prior to 1 January
2007, which are paid to employees when they leave the Company. Under certain conditions, employees may receive a partial advance on those benefits
while they are still in the Company’s employ. This is an unfunded defined benefit plan, as the benefits have already been almost entirely earned, 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 labor agreements. Such schemes are unfunded.
Other long-term employee benefits
This item mainly includes benefits which are due to employees who have completed a determined length of service.
At 31 December 2011 and 2010, provisions for post-employment benefits consisted of the following:
Leaving entitlement (TFR) Other Total
(€ thousand)
31
December
2011
31
December
2010
31
December
2011
31
December
2010
31
December
2011
31
December
2010
Present value of unfunded defined benefit plan obligations 4,436 4,993 9,733 11,736 14,169 16,729
Unrecognized actuarial gains/(losses) 391 585 (651) 777 (260) 1,362
Net liability 4,827 5,578 9,082 12,513 13,909 18,091
Amounts recognized in the income statement for post-employment benefits were as follows:
Leaving entitlement (TFR) Other Total
(€ thousand)
31
December
2011
31
December
2010
31
December
2011
31
December
2010
31
December
2011
31
December
2010
Service cost:
- Current service cost --1,030 919 1,030 919
- Net actuarial (gains)/losses recognized during the year (9) (9) (98) -(107) (9)
Total service cost (9) (9) 932 919 923 910
Interest costs 112 191 190 326 302 517
Total cost/(return) for post-employment benefits 103 182 1,122 1,245 1,225 1,427