The actuarial gains and losses on obligations generated over 2019 amount to €3,887 million, and are mainly associated with changes in the discount rate and inflation rate (€4,244 million), the impact of the law on social security system funding for 2020 (€(267) million), the updating of the wage law (€(125) million) and experience adjustments of €16 million.
POST-EMPLOYMENT AND LONG-TERM EMPLOYEE BENEFIT EXPENSES:
| (in millions of euros) | 31/12/2019 | 31/12/2018 |
|---|---|---|
| Current service cost(1) | Current service cost (1)31/12/2019409 | Current service cost (1)31/12/2018529 |
| Interest expenses (discount effect) | Interest expenses (discount effect) 31/12/2019614 | Interest expenses (discount effect) 31/12/2018574 |
| Expected return on fund assets | Expected return on fund assets 31/12/2019(271) | Expected return on fund assets 31/12/2018(267) |
| Amortisation of unrecognised actuarial gains and losses – post-employment benefits | Amortisation of unrecognised actuarial gains and losses – post-employment benefits 31/12/201999 | Amortisation of unrecognised actuarial gains and losses – post-employment benefits 31/12/2018241 |
| Change in actuarial gains and losses – long-term benefits | Change in actuarial gains and losses – long-term benefits 31/12/2019132 | Change in actuarial gains and losses – long-term benefits 31/12/2018(16) |
| Effect of plan curtailment or settlement | Effect of plan curtailment or settlement 31/12/2019- | Effect of plan curtailment or settlement 31/12/2018- |
| Past service cost – vested benefits | Past service cost – vested benefits 31/12/2019- | Past service cost – vested benefits 31/12/2018- |
| Past service cost – unvested benefits | Past service cost – unvested benefits 31/12/201910 | Past service cost – unvested benefits 31/12/201810 |
| NET CHARGES RELATED TO POST-EMPLOYMENT BENEFITS AND LONG-TERM BENEFITS | NET CHARGES RELATED TO POST-EMPLOYMENT BENEFITS AND LONG-TERM BENEFITS31/12/2019993 | NET CHARGES RELATED TO POST-EMPLOYMENT BENEFITS AND LONG-TERM BENEFITS31/12/20181,071 |
| including: | ||
| Operating expenses(2) | Operating expenses (2)31/12/2019651 | Operating expenses (2)31/12/2018764 |
| Financial expenses | Financial expenses 31/12/2019342 | Financial expenses 31/12/2018307 |
(1) The lower past service cost compared to 2018 essentially results from changes in actuarial assumptions, principally the decrease in the wage increase rate (-0.1%) and the rise in the discount rate (+0.4%).
(2) In 2019, this amount principally corresponds to operating increases of €674 million net of reversals for actuarial gains and losses (€(23) million).
Details of these provisions are shown below:
| Increases | Decreases | |||||
|---|---|---|---|---|---|---|
| (in millions of euros) | 31/12/2018 | Operating | Financial | Operating | Financial | 31/12/2019 |
| Provisions for post-employment benefits | Provisions for post-employment benefits 10,304 | Provisions for post-employment benefitsIncreases534 | Provisions for post-employment benefitsDecreases592 | Provisions for post-employment benefits (748) | (271) | 10,411 |
| comprising: | ||||||
| Pensions | Pensions 7,358 | Pensions Increases293 | Pensions Decreases456 | Pensions (590) | (260) | 7,257 |
| CNIEG expenses | CNIEG expenses 453 | CNIEG expenses Increases7 | CNIEG expenses Decreases10 | CNIEG expenses (13) | - | 457 |
| Benefits in kind (energy) | Benefits in kind (energy) 1,888 | Benefits in kind (energy) Increases157 | Benefits in kind (energy) Decreases95 | Benefits in kind (energy) (122) | - | 2,018 |
| Retirement gratuities | Retirement gratuities (5) | Retirement gratuities Increases36 | Retirement gratuities Decreases13 | Retirement gratuities (1) | (11) | 32 |
| Other benefits | Other benefits 611 | Other benefits Increases41 | Other benefits Decreases18 | Other benefits (22) | - | 648 |
| (in millions of euros) | Obligations | Fund assets | Unrecognised Past service cost | Unrecognised Actuarial gains and losses | Provision in the balance sheet |
|---|---|---|---|---|---|
| Provisions for post-employment benefits at 31/12/2019 | Provisions for post-employment benefits at 31/12/2019Obligations29,519 | Provisions for post-employment benefits at 31/12/2019Fund assets(12,314) | Provisions for post-employment benefits at 31/12/2019Unrecognised Past service cost(29) | Provisions for post-employment benefits at 31/12/2019Unrecognised Actuarial gains and losses(6,765) | Provisions for post-employment benefits at 31/12/2019Provision in the balance sheet10,411 |
| comprising: | |||||
| Pensions | Pensions Obligations22,576 | Pensions Fund assets(11,764) | Pensions Unrecognised Past service cost- | Pensions Unrecognised Actuarial gains and losses(3,556) | Pensions Provision in the balance sheet7,257 |
| CNIEG expenses | CNIEG expenses Obligations457 | CNIEG expenses Fund assets- | CNIEG expenses Unrecognised Past service cost- | CNIEG expenses Unrecognised Actuarial gains and losses- | CNIEG expenses Provision in the balance sheet457 |
| Benefits in kind (energy) | Benefits in kind (energy) Obligations4,847 | Benefits in kind (energy) Fund assets- | Benefits in kind (energy) Unrecognised Past service cost- | Benefits in kind (energy) Unrecognised Actuarial gains and losses(2,829) | Benefits in kind (energy) Provision in the balance sheet2,018 |
| Retirement gratuities | Retirement gratuities Obligations602 | Retirement gratuities Fund assets(534) | Retirement gratuities Unrecognised Past service cost(13) | Retirement gratuities Unrecognised Actuarial gains and losses(23) | Retirement gratuities Provision in the balance sheet32 |
| Other benefits | Other benefits Obligations1,037 | Other benefits Fund assets(16) | Other benefits Unrecognised Past service cost(16) | Other benefits Unrecognised Actuarial gains and losses(357) | Other benefits Provision in the balance sheet648 |
