Loreal 2011 Annual Report Download - page 189

187REGISTRATION DOCUMENT − L’ORÉAL 2011
Corporate social, environmental and societal responsibility
6
Social information
Employees Benefit schemes in France
In addition to the compulsory Lump Sum Death Benefit for
executives under Articles4 and 4bis of the French National
Collective Bargaining Agreement of1947 (1.5% of Bracket A
of income as defined by the French Social Security) and the
guarantees accorded under the French National Collective
Bargaining Agreement for the Chemical Industries, L’Oréal has set
up, in France, under an agreement, an E mployee B enefit scheme
providing additional collective guarantees to its employees.
All these guarantees are based on the gross income up to
eight times the Social Security ceiling, except for the education
annuity which is limited to up to four times the ceiling. They are
generally financed on BracketsA, B and C of income as defined
by the French Social Security, except for the Education Annuity
which is based on BracketsA and B, and the surviving Spouse
Pension which is based on BracketsB and C.
This Employee Benefit scheme provides guarantees in the event
of:
♦temporary disability: for all employees, 90% of their gross
income limited to eight times the French Social Security ceiling,
net of all deductions, after the first 90days off work;
♦permanent disability: for all employees, a fraction, depending
on the extent of the disability, ranging up to 90% of their gross
income, limited to eight times the French Social Security
ceiling, net of all deductions;
♦death:
a) for all employees, the payment of a Lump Sum Death Benefit,
increased depending on the employee’s family status. The
amount of this Benefit is doubled in the event of accidental
death,
b) for executives and comparable categories of employees,
the payment of a Spouse Pension to the surviving spouse.
This ensures the spouse has an income similar to the Spouse
Pension that would have been paid by AGIRC if death had
occurred at the age of65,
c) for executives, comparable categories of employees,
and sales representatives, the payment of an Education
Annuity to each dependent child, according to an age-
based schedule. For the other employees, this guarantee
is optional and, if chosen, replaces part of the Lump Sum
Death Benefit.
The total amount of the Lump Sum Equivalent for these guarantees
may not exceed €2.3million per event.
The capital for the Spouse Pension is the first to be applied,
followed by the Education Annuity; the balance of the basic
scheme is then used to calculate the Lump Sum Death Benefit,
possibly increased by the minimum guaranteed Lump Sum
Death Benefit.
€ thousands 12.31.2009 12.31.2010 12.31.2011
Net E mployee B enefit C ontributions 9,340.5 9,877.1 10,170.0(1)
(1) Estimated.
Minimum guaranteed Lump Sum Death Benefits
Since December1st, 2004, and January1st, 2005 for sales
representatives, L’Oréal has put in place an additional
guaranteed Lump Sum Death Benefit that supplements, where
applicable, for all employees, the Lump Sum Death Benefits to
the extent of three years’ average income. A maximum limit is
set for this guarantee.
The total amount of the capital needed to fund the surviving
Spouse Pension and Education Annuity, the Lump Sum Death
Benefits and the minimum guaranteed Lump Sum Death Benefit
is also subject to a ceiling.
Healthcare expenses
The employees of L’Oréal parent company and its French
subsidiaries benefit from additional schemes covering healthcare
costs.
The healthcare scheme is compulsory for all the employees of
L’Oréal and its French subsidiaries.
Employees have the option of including their family members
in these schemes.
Contributions are generally individual. The contribution by the
employee is partly financed by the Company.
Retirees can generally continue to benefit from the healthcare
scheme, with a contribution by L’Oréal, subject to a membership
duration clause.
The scheme for L’Oréal parent company retirees has been
specified in the regulations for the additional defined benefit
pension scheme applicable as from January1st, 2008. The
financial management of this scheme was outsourced to
insurance companies in July2011.