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- Changes during the year
(in millions of euros)
Present value of projected benefit obligation
As of January 1 2,879
Reduction in obligation following payment of single premium (384)
Actuarial gain due to transfer to external funds, taken to income (13)
Service cost and one-year discounting adjustment 235
Benefits paid in 2002 (105)
Change in actuarial assumptions 199
Translation adjustment and other movements (86)
As of December 31 A 2,725
Funded status
As of January 1 2,108
Decrease in external funds following payment of part of the single premium (228)
Expected return on external funds 140
Benefits paid in 2002 7
Change in fair value of external funds (300)
Translation adjustment and other movements (59)
As of December 31 B 1,668
Deferred items
As of January 1 638
Deferred items taken to income relating to obligations covered by external funds (95)
Amortization for the year (35)
New deferred items for 2002 499
Translation adjustment and other movements (26)
As of December 31 C 981
Balance sheet reserve
As of January 1 133
Changes in scope of consolidation 1
Additions for the year 211
Payments to external funds (85)
Payment of the balance of the single premium (156)
Translation adjustment and other movements (28)
As of December 31 D 76
- Change in supplementary pension plans
The supplementary pension plans set up by the main French companies
in the Group, with the exception of Automotive Equipment division
entities, were amended by agreements signed with employee
representatives on May 2 and May 13, 2002. Under the revised plans:
- Employees born before 1943 continue to be eligible for the
supplementary pension benefits payable under the original plan.
- Employees born in or after 1943 are eligible for the supplementary
pension benefits payable under the original plan when they retire and
claim their social security pension. However, effective from June 30,
2002, they no longer acquire any new rights under the plan.
The Group has taken out a group insurance policy with a licensed
insurance company to cover the payment of supplementary pension
benefits to these employees. Benefits will be paid out of a pension fund
financed by the payment of a single premium of €384 million on behalf
of all French companies. No further contributions will be made to the
fund by any Group company. Part of the single premium was paid out of
external funds amounting to €228 million and the balance of €156 million
was paid out of the Group’s cash reserves. The related tax cost was €13
million and the additional payroll taxes payable amounted to €6 million.
The payment of the single premium on June 28, 2002 had the effect of
transferring to the insurance company the Group's obligations towards
the employees concerned.
The operation led to the immediate recognition of deferred items
related to the transferred benefit obligation, representing a charge of
€95 million before tax. The charge was partly offset by an actuarial gain
of €13 million resulting from the transfer of the obligation to an
external fund. The charge to the income statement, including the net
charge of €82 million referred to above and the related income tax and
payroll tax charges, was €101 million, net (see note 11).
PSA PEUGEOT CITROËN - APPENDICES TO THE MANAGING BOARD REPORT 171