2012 Registration document and annual financial report - BNP Paribas

INFORMATION ON THE PARENT COMPANY FINANCIAL STATEMENTSNotes to the parent company financial statements6Pension plans and other post-employmentbenefitsPension plansIn France, BNP Paribas SA pays a top-up banking industry pension arisingfrom rights acquired to 31 December 1993 by retired employees at thatdate and active employees in service at that date. These residual pensionobligations are covered by a provision in the BNP Paribas SA’s financialstatements or transferred to an insurance company.The defined benefit plans previously granted to BNP Paribas SA executivesformerly employed by BNP or Paribas have all been closed and convertedinto top-up type plans. The amounts allocated to the beneficiaries, subjectto their still being with BNP Paribas SA at retirement, were fixed when theprevious plans were closed. These pension plans have been contractedout to insurance companies. The fair value of the related plan assets onthese insurance companies’ balance sheets consists of 83.7% bonds, 6.8%equities, and 9.5% property assets.In BNP Paribas SA’s foreign branches, pension plans are based eitheron pensions linked to the employee’s final salary and length of service(United Kingdom), or on annual vesting of rights to a capital sumexpressed as a percentage of annual salary and paying interest at apredefined rate (United States). In Hong Kong, certain staff benefit froma defined contribution pension plan with a guaranteed minimum returnfor which the employer is responsible. This plan is closed to new entrants.As a result of this guaranteed return, this plan is classified as a definedbenefit plan.Some plans are managed by independent fund managers (UnitedKingdom). As of 31 December 2012, 82% of the gross obligations underthese plans related to seven plans in the United Kingdom, United Statesand Hong Kong. The fair value of the related plan assets was split asfollows: 36% equities, 52% bonds, and 12% other financial instruments.Other post-employment benefitsBNP Paribas SA employees also receive various other contractual postemploymentbenefits such as bonuses payable on retirement. BNP ParibasSA’ obligations for these bonuses in France are funded through a contracttaken out with an insurance company independent of BNP Paribas SA.Post-employment healthcare benefitsIn France, BNP Paribas SA no longer has any obligations in relation tohealthcare benefits for its retired employees.Among BNP Paribas SA’s foreign branches, there are several healthcarebenefit plans for retired employees, mainly in the United States.Provisions for obligations under these plans amounted to EUR 9 millionat 31 December 2012, compared to EUR 8 million at 31 December 2011.Obligations under post-employment healthcare benefit plans aremeasured using the mortality tables applicable in each country. Theyalso build in assumptions about healthcare benefit costs, includingforecast trends in the cost of healthcare services and in inflation, whichare derived from historical data.Termination benefitsBNP Paribas has implemented a number of voluntary redundancy plansfor employees who meet certain eligibility criteria. The obligations toeligible active employees under such plans are provided for when theplan is the subject of an agreement or a bilateral draft agreement.In millions of euros, at 31 December 2012 31 December 2011Provisions for voluntary departure, early retirement plans, and headcount adaptation plan 59 10762012 Registration document and annual financial report - BNP PARIBAS 359