2005 Annual report - Virbac

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Note B12 - Employee benefits
(€ thousands) 2005 2004
Post-employment benefits 3,067 2,599
Directors’ pensions 1,878 1,251
Virbac RSA medical cover 586 268
Other employee benefits 522 588
TOTAL 6,053 4,706
Pension schemes and post-employment benefits
❖ Commitments in respect of post-employment benefits
Pursuant to a collective labour agreement, French companies in the Group pay retiring employees post-employment benefits
in accordance with their salary and length of service. At 31 December 2005, the corresponding provision amounted to
€3,067 thousand (compared with €2,599 thousand at 31 December 2004).
◆ Vesting of rights:
- executives: 12/100 per year of service
- non-executives: 10/100 per year of service
- discount rate: 4% (compared with 4.5% at 31 December 2004)
- social security rate: 46%
- rate of staff turnover: determined by category, the age of the employee and his/her length of service.
◆ Other parameters:
Senior Executives Employees and Manual workers
executives supervisory staff and technicians
Retirement age 64 64 62 60
Rate of salary increase 2.5 2.5 1.5 1
❖ Retirement commitments
Virbac SA has recognised a provision in respect of the defined benefit plan established in 2003 for members of the Executive board.
The provision totalled €1,878 thousand at 31 December 2005 (compared with €1,250 thousand at 31 December 2004).
The commitment in respect of past service was spread over the remaining period in accordance with the terms and conditions of the
plan. At 31 December 2005, the amount of the commitment not recognised amounted to €497 thousand (compared with
€697 thousand at 31 December 2004), i.e. an impact of €200 thousand on the net income of the period.
Virbac RSA medical cover
A medical cover plan has been implemented by the South African subsidiary for its employees and some of its former employees.
Other employee benefits
Provisions are recognised in the financial statements of the subsidiaries in respect of the various employee benefit systems in
respect of post-employment benefits, pension schemes and health insurance.