1998-Paribas Annual Report - BNP Paribas

76
R) RETIREMENT BENEFIT COMMITMENTS
a) Mandatory pension plans
In France and in most countries where the Group companies
operate, commitments for mandatory pension
plans are funded by contributions paid to retirement
scheme organizations which are responsible for the payment
of the pensions. These contributions are charged
to income as incurred. Following the agreement of
September 13, 1993 signed by all French banks with the
ARRCO and AGIRC organizations (the general retirement
scheme), subsidiaries of the Compagnie Bancaire
Group remain committed for residual amounts with respect
to current retirees and, for their period of activity
within the group prior to December 31, 1993, with respect
to current employees. The totality of these commitments
are provided for, according to the actuarial
method described below.
In several Group companies, complementary defined
benefit pension plans exist, as well as retirement indemnities,
prudential schemes and other advantages, based
on the employees' years of service. All commitments that
are not covered by insurance contracts are provided for,
taking into account mortality factors, the probability of
remaining in the Group until retirement date, an actualization
rate of 6% and inflation of 3%. Unrecognized gains
or losses due to changes in assumptions are amortized
over a period of 15 years.
b) Other commitments
Charges incurred for early retirement or restructuring
are provided for during the year when those measures
are decided.