Chrysler 2014 Annual Report Download - page 222

220 2014 | ANNUAL REPORT
Consolidated
Financial Statements
Notes to the Consolidated
Financial Statements
25. Provisions for employee benefits
The Group’s provisions and net assets for employee benefits were as follows:
At December 31,
2014 2013
(€ million)
Present value of defined benefit obligations:
Pension benefits 27,287 23,137
Health care and life insurance plans 2,276 1,945
Other post-employment benefits 1,074 1,023
Total present value of defined benefit obligations (a) 30,637 26,105
Fair value of plan assets (b) 22,231 18,982
Asset ceiling (c) 63
Total net defined benefit plans (a - b + c) 8,412 7,126
of which:
Net defined benefit liability (d) 8,516 7,221
(Defined benefit plan asset) (104) (95)
Other provisions for employees and liabilities for share-based payments (e) 1,076 1,105
Total Provisions for employee benefits (d + e) 9,592 8,326
The Group provides post-employment benefits for certain of its active employees and retirees. The way these
benefits are provided varies according to the legal, fiscal and economic conditions of each country in which the
Group operates and may change periodically. The plans are classified by the Group on the basis of the type of benefit
provided as follows: pension benefits, health care and life insurance plans, and other post-employment benefits.
Moreover, Group companies provide post-employment benefits, such as pension or health care benefits, to their
employees under defined contribution plans. In this case, the Group pays contributions to public or private insurance
plans on a legally mandatory, contractual, or voluntary basis. By paying these contributions the Group fulfills all of
its obligations. The Group recognizes the cost for defined contribution plans over the period in which the employee
renders service and classifies this by function in Cost of sales, Selling, general and administrative costs and Research
and development costs. In 2014, this cost totaled €1,405 million (€1,314 million in 2013 and €1,114 million in 2012).
Pension benefits
Group companies in the United States and Canada 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 or
the freeze of such plans, as applicable.
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.