GB00_erste lage_E - Erste Group

a) Employee benefits
Total provisions
Pension Severance Anniversary for employee
in EUR million provisions provisions provisions benefit
Net present value as of 31 Dec 1998
(provision as of 31 Dec 1998) 509 121 23 653
Settlements (22) (4) (1) (27)
Service cost 0 7 2 9
Interest cost 26 6 1 33
Payments (41) (20) (2) (63)
Actuarial gains and losses 26 10 (3) 33
Net present value as of 31 Dec 1999
Unrecognised actuarial
498 120 20 638
gains and losses
Provision for employee benefits
(26) 0 0 (26)
as of 31 Dec 1999 472 120 20 612
Settlements (61) (2) (1) (64)
Service cost 0 7 2 9
Interest cost 26 6 1 33
Payments (44) (11) (1) (56)
Actuarial gains and losses 32 (4) 1 29
Net present value as of 31 Dec 2000
Unrecognised actuarial
425 116 22 563
gains and losses
Provision for employee benefits
(32) 0 0 (32)
as of 31 Dec 2000 393 116 22 531
Provisions for employee benefits
Applying the new mortality charts AVÖ 1999 P—Rechnungsgrundlagen für die Pensionsversicherung—Pagler
& Pagler, which assume a longer life expectancy, the present value for future benefits
for pension obligations as of 31 December 2000 were EUR 425 million. The difference of EUR
32 million between this amount and the pension provisions reported in the Balance Sheet essentially
results from applying the current mortality charts and remains within the limits defined in
IAS 19.92.
These new mortality charts published in 1999 are also applied in calculating the provisions for
severance payments and anniversary bonuses.
Erste Bank 2000 89