Fund assets, managed under an asset/liability model, amount to €13,203 million at 31 December 2020 (€12,314 million at 31 December 2019) and concern the coverage of retirement gratuities and the specific benefits of the special pension system.
The value of fund assets increased during the year, mainly as a result of favourable changes on the bond markets.
Investments under the contracts concerned break down as follows:
| (in millions of euros) | 31/12/2020 | 31/12/2019 |
|---|---|---|
| TOTAL FUND ASSETS | TOTAL FUND ASSETS31/12/202013,203 | TOTAL FUND ASSETS 31/12/2019 12,314 |
| Assets funding special pension benefits | Assets funding special pension benefits31/12/202012,656 | Assets funding special pension benefits 31/12/2019 11,764 |
| (%): | (%): 31/12/2020
| (%): 31/12/2019
|
| Equities | Equities 31/12/202033% | Equities 31/12/2019 31% |
| Bonds and monetary instruments | Bonds and monetary instruments 31/12/202067% | Bonds and monetary instruments 31/12/2019 69% |
| Assets funding retirement gratuities | Assets funding retirement gratuities31/12/2020532 | Assets funding retirement gratuities 31/12/2019 534 |
| (%): | (%): 31/12/2020
| (%): 31/12/2019
|
| Equities | Equities 31/12/202037% | Equities 31/12/2019 34% |
| Bonds and monetary instruments | Bonds and monetary instruments 31/12/202063% | Bonds and monetary instruments 31/12/2019 66% |
| Assets funding other benefits | Assets funding other benefits31/12/202015 | Assets funding other benefits 31/12/2019 16 |
The main actuarial assumptions used for provisions for post-employment benefits and long-term employee benefits under the IEG system are summarised below:
In France, the discount rate used for employee benefit obligations is determined by applying the yield rate on high-quality corporate bonds of appropriate duration to maturities corresponding to the future disbursements resulting from these obligations. For longer durations, the calculation also takes into consideration data from a wider selection of corporate bonds adjusted for comparability with the high-quality bonds, given the smaller panel of bonds with these durations since 2017. The decrease in the discount rate essentially relates to the decrease in risk-free rates observed over 2020.
Changes in the economic and market parameters used have led EDF to set the discount rate at 0.90% at 31 December 2020 (1.30% at 31 December 2019).
The inflation assumption is based on an inflation curve constructed from economic forecasts and inflation-indexed market products.
As a result of changes in the economic and market parameters, the assumed average inflation rate used as the EDF group’s benchmark for Euro zone countries is 1.2% at 31 December 2020 (1.3% at 31 December 2019).
The obligations are based on wage increase assumptions that are differentiated by age group and employee category, with an average annual rise of 2.3% including inflation for a projected full career.
The wage law used to calculate obligations refers to wage increases observed over the period 2015-2018 (adjusted for non-recurring effects).
The mortality table used to calculate obligations is based on the INSEE 2013-2070 generation table (produced by the French statistics office), corrected for differences inmortality between the general French population and the population covered by the IEG regime.
