Chrysler 2013 Annual Report Download - page 202

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201
Consolidated
Financial Statements
at 31 December 2013
Health care and life insurance plans
Liabilities arising from these plans comprise obligations for retiree health care and life insurance granted to employees and to retirees in the
U.S. and Canada by Chrysler Group companies. Upon retirement from the Company, these employees may become eligible for continuation
of certain benefits. Benefits and eligibility rules may be modified periodically. These plans are unfunded. The expected benefit payments for
unfunded health care and life insurance plans are as follows:
( million)
Expected benefit
payments
2014 128
2015 127
2016 127
2017 127
2018 126
2019-2023 631
Changes in the net defined benefit obligations for healthcare and life insurance plans are as follows:
( million) 2013 2012
Present value of obligations at 1 January 2,289 2,070
Included in Income statement
Current service cost 23 22
Interest expense 89 103
Past service costs (credits) and gains or losses arising from settlements -(6)
Included in OCI
Actuarial losses (gains) from:
Demographic assumptions (21) 52
Financial assumptions (207) 231
Other 11 (1)
Effect of movements in exchange rates (112) (38)
Other
Benefits paid (126) (145)
Other (1) 1
Present value of obligations at 31 December 1,945 2,289
Health care and life insurance plans are accounted for on an actuarial basis, which requires the selection of various assumptions, in particular,
it requires the use of estimates of the present value of the projected future payments to all participants, taking into consideration the likelihood
of potential future events such as health care cost increases and demographic experience.