2019 Universal registration document and annual financial report - BNP PARIBAS490
6 information on the Parent ComPany finanCial statements at 31 deCemBer 2019
6
Notes to the parent company financial statements
In BNP Paribas SA s foreign branches, pension plans are based either on pensions linked to the employee s final salary and length of service (United Kingdom), or on annual vesting of rights to a capital sum expressed as a percentage of annual salary and remunerated at a predefined rate (United States). Following the merger between BNP Paribas España SA and BNP Paribas SA, the subsidiary s commitments were transferred to the BNP Paribas SA branch in Madrid.
Some plans are managed by independent fund managers. As of 31 December 2019, 90% of the gross obligations under these plans related to plans in the United Kingdom, United States and Spain. The market value of the related plan assets was split as follows: 14% equities, 71% bonds, and 15% other financial instruments.
Other post-employment benefits
BNP Paribas SA employees also receive various other contractual postemployment benefits, such as indemnities payable on retirement. BNP Paribas obligations for these benefits in France are funded through a contract held with an insurer that is independent from BNP Paribas SA.
Post-employment healthcare benefits In France, BNP Paribas SA no longer has any obligation in relation to healthcare benefits for its retired employees.
Among BNP Paribas SA s foreign branches, there are several healthcare benefit plans for retired employees, mainly in the United States. Provisions for obligations under these plans amounted to EUR 16 million at 31 December 2019, compared to EUR 15 million at 31 December 2018.
Obligations under post-employment healthcare benefit plans are measured using the mortality tables applicable in each country and assumptions about trends in healthcare costs. They also build in assumptions about healthcare benefit costs, including forecast trends in the cost of healthcare services and in inflation, which are derived from historical data.
Termination benefits
The Bank has implemented a number of voluntary redundancy plans and a headcount adaptation plan for employees who meet certain eligibility criteria. The obligations to eligible active employees under such plans are provided for when the plan is the subject of an agreement or a bilateral draft agreement.
Provisions for these plans totalled EUR 42 million at 31 December 2019 (EUR 53 million at 31 December 2018).
In millions of euros at 31 December 2019 31 December 2018
Provision for voluntary departure, early retirement plans, and headcount adaptation plans 42 53
