Chrysler 2013 Annual Report Download - page 198

197
Consolidated
Financial Statements
at 31 December 2013
Pension benefits
Group companies in the United States, Canada and Mexico sponsor both non-contributory and contributory defined benefit pension plans.
The non-contributory pension plans cover certain hourly and salaried employees. Benefits are based on a fixed rate for each year of service.
Additionally, contributory benefits are provided to certain salaried employees under the salaried employees’ retirement plans. These plans
provide benefits based on the employee’s cumulative contributions, years of service during which the employee contributions were made
and the employee’s average salary during the five consecutive years in which the employee’s salary was highest in the 15 years preceding
retirement.
In the United Kingdom, the Group participates, amongst others, in a pension plan financed by various entities belonging to the Group, called
the “Fiat Group Pension Scheme” covering mainly deferred and retired employees.
Liabilities arising from these plans are usually funded by contributions made by Group subsidiaries and, at times by their employees, into legally
separate trusts from which the employee benefits are paid. The Group’s funding policy for defined benefit pension plans is to contribute at
least the minimum amounts required by applicable laws and regulations. Occasionally, additional discretionary contributions in excess of these
legally required are made to achieve certain desired funding levels. In the U.S. these excess amounts are tracked, and the resulting credit
balance can be used to satisfy minimum funding requirements in future years. As of 31 December 2013, the combined credit balances for
the U.S. qualified pension plans was approximately €1.9 billion, the usage of this credit balances to satisfy minimum funding requirements is
subject to the plans maintaining certain funding levels. The Group contributions to funded pension plans for 2014 are expected to be €666
million, of which €647 million related to Chrysler and more specifically, €573 million are discretionary contributions and €74 million will be made
to satisfy minimum funding requirement. The expected benefit payments for pension plans are as follows:
(€ million)
Expected benefit
payments
2014 1,654
2015 1,623
2016 1,598
2017 1,572
2018 1,554
2019-2023 7,552