2018 Registration document and annual fi nancial report - BNP PARIBAS490

6 INFORMATION ON THE PARENT COMPANY FINANCIAL STATEMENTS 31 DECEMBER 2018

6

Notes to the parent company fi nancial statements

In BNP Paribas SA s foreign branches, pension plans are based either on pensions linked to the employee s fi nal 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 predefi ned rate (United States). In Hong Kong, a fi xed number of employees are covered by a defi ned-contribution pension plan with a guaranteed minimum return paid by the employer until 1 December 2018. The return is set at 0% after this date. This plan is closed to new entrants. As a result of this guaranteed return, this plan is classifi ed as a defi ned-benefi t plan.

Some plans are managed by independent fund managers (United Kingdom). As of 31 December 2018, 89% of the gross obligations under these plans related to plans in the United Kingdom, United States and Hong Kong. The market value of the related plan assets was split as follows: 14% equities, 72% bonds, and 14% other fi nancial instruments.

Other post-employment benefits

BNP Paribas SA employees also receive various other contractual postemployment benefi ts, such as indemnities payable on retirement. BNP Paribas obligations for these benefi ts 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 benefi ts 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 15 million at 31 December 2018, compared to EUR 15 million at 31 December 2017.

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 benefi t costs, including forecast trends in the cost of healthcare services and in infl ation, 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.

In 2016, a three-year voluntary redundancy plan (September 2016 to September 2018) was implemented for CIB activities in France.

Provisions for these plans totalled EUR 53 million at 31 December 2018 (EUR 82 million at 31 December 2017).

In millions of euros, at 31 December 2018 31 December 2017

Provision for voluntary departure, early retirement plans, and headcount adaptation plans 53 82