The United Kingdom segment chiefly comprises EDF Energy.
(in millions of euros) | 31/12/2020 | 31/12/2019 |
|---|---|---|
| Current employees | Current employees 31/12/20205,702 | Current employees 31/12/2019 5,202 |
| Retirees | Retirees 31/12/20204,415 | Retirees 31/12/2019 4,488 |
| OBLIGATIONS | OBLIGATIONS31/12/2020 10,117 | OBLIGATIONS 31/12/2019 9,690 |
Pension obligations in the United Kingdom are partly covered by external funds with a present value of €11,406 million at 31 December 2020 (€10,712 million at31 December 2019).
The investment strategy applied in these funds is a liability driven investment strategy. The allocation between growth and back-to-back is regularly reviewed by the trustees, at least after every actuarial valuation, to ensure that the funds’ overall investment strategy remains coherent in order to achieve the target coverage level required.
These assets break down as follows:
(in millions of euros) | 31/12/2020 | 31/12/2019 |
|---|---|---|
| BEGG pension fund | BEGG pension fund 31/12/2020 8,585 | BEGG pension fund 31/12/2019 8,144 |
| EEGSG pension fund | EEGSG pension fund 31/12/2020 1,585 | EEGSG pension fund 31/12/2019 1,493 |
| EEPS pension fund | EEPS pension fund 31/12/2020 1,236 | EEPS pension fund 31/12/2019 1,075 |
FUND ASSETS | FUND ASSETS 31/12/2020 11 406 | FUND ASSETS 31/12/2019 10,712 |
| Including (%) | Including (%) 31/12/2020
| Including (%) 31/12/2019
|
| Listed equity instruments (shares) | Listed equity instruments (shares) 31/12/2020 11% | Listed equity instruments (shares) 31/12/2019 11% |
| Listed debt instruments (bonds) | Listed debt instruments (bonds) 31/12/2020 61% | Listed debt instruments (bonds) 31/12/2019 57% |
| Real estate properties | Real estate properties 31/12/2020 6% | Real estate properties 31/12/2019 7% |
| Cash and cash equivalents | Cash and cash equivalents 31/12/2020 4% | Cash and cash equivalents 31/12/2019 2% |
Other | Other 31/12/2020 18 % | Other 31/12/2019 23 % |
At 31 December 2020, the equities held as part of fund assets are distributed as follows:
At 31 December 2020, the bonds held as part of fund assets are distributed as follows:
Around 71% of all these bonds are sovereign bonds, mainly issued by the UnitedKingdom. The balance mainly consists of bonds issued by financial and non-financial firms.
The portion of sovereign bonds issued by the United Kingdom was 1 percentage point higher than at 31 December 2019.
Cash flows related to future employee benefits are as follows:
(in millions of euros) | Cash flow under year-end economic | Amount covered by provisions |
|---|---|---|
| Less than one year | Less than one year Cash flow under year-end economic 409 | Less than one year Amount covered by provisions 440 |
| One to five years | One to five years Cash flow under year-end economic 1,742 | One to five years Amount covered by provisions 1,690 |
| Five to ten years | Five to ten years Cash flow under year-end economic 2,419 | Five to ten years Amount covered by provisions 2,130 |
| More than ten years | More than ten years Cash flow under year-end economic 9,640 | More than ten years Amount covered by provisions 5,857 |
| CASH FLOWS RELATED TO EMPLOYEE BENEFITS | CASH FLOWS RELATED TO EMPLOYEE BENEFITS Cash flow under year-end economic 14,210 | CASH FLOWS RELATED TO EMPLOYEE BENEFITS Amount covered by provisions 10,117 |
The contribution to funds for 2021 is estimated at approximately €298 million (€288 million contributed by the employer and €10 million by the employees).
The average weighted duration of funds in the United Kingdom is 23.5 years at 31 December 2020.
