Chrysler 2012 Annual Report Download - page 289

Notes
288 Fiat S.p.A.
Statutory
Financial
Statements
at 31 December
2012
Calculations for post-employment benefits and other long-term employee benefits are based on the following actuarial assumptions:
31 December 2012 31 December 2011
Discount rate 3.17% 3.90%
Rate of future salary increases 1.94% 3.20%
Inflation rate 2.00% 2.00%
Maximum retirement age As per current legislation Years: 60(F)/65(M)
Mortality rate SI08 SI08
Average rate of annual departures 8.07% 10.45%
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 2012 and 2011, provisions for post-employment benefits consisted of the following:
Leaving entitlement (TFR) Other Total
(€ thousand)
31 December
2012
31 December
2011
31 December
2012
31 December
2011
31 December
2012
31 December
2011
Present value of unfunded defined benefit plan obligations 4,547 4,436 9,823 9,733 14,370 14,169
Unrecognized actuarial gains/(losses) (1,028) 391 174 (651) (854) (260)
Net liability 3,519 4,827 9,997 9,082 13,516 13,909
Amounts recognized in the income statement for post-employment benefits were as follows:
Leaving entitlement (TFR) Other Total
(€ thousand)
31 December
2012
31 December
2011
31 December
2012
31 December
2011
31 December
2012
31 December
2011
Service cost:
- Current service cost --917 1,030 917 1,030
- Net actuarial (gains)/losses recognized during the year -(9) 30 (98) 30 (107)
Total service cost -(9) 947 932 947 923
Interest costs 112 112 186 190 298 302
Total cost/(return) for post-employment benefits 112 103 1,133 1,122 1,245 1,225