Fund assets, managed under an asset/liability model, amount to €13,148 million at 31 December 2021 (€13,203 million at 31 December 2020) and concern coverage of retirement gratuities and the specific benefits of the special pension system.
Investments under the contracts concerned break down as follows:
The value of fund assets declined during the year, mainly as a result of less favourable conditions on the financial markets, particularly the bond markets.
| (in millions of euros) | 31/12/2021 | 31/12/2020 |
|---|---|---|
| TOTAL FUND ASSETS | TOTAL FUND ASSETS31/12/202113,148 | TOTAL FUND ASSETS31/12/202013,203 |
| Assets funding special pension benefits | Assets funding special pension benefits31/12/202112,606 | Assets funding special pension benefits31/12/202012,656 |
| % | % 31/12/2021
|
% 31/12/2020
|
| Equities | Equities 31/12/202132% |
Equities 31/12/202033% |
| Bonds and monetary instruments | Bonds and monetary instruments 31/12/202167% |
Bonds and monetary instruments 31/12/202067% |
| Real estate assets | Real estate assets 31/12/20211% |
Real estate assets 31/12/2020- |
| Assets funding retirement gratuities | Assets funding retirement gratuities31/12/2021527 | Assets funding retirement gratuities31/12/2020532 |
| % | % 31/12/2021
|
% 31/12/2020
|
| Equities | Equities 31/12/202133% |
Equities 31/12/202037% |
| Bonds and monetary instruments | Bonds and monetary instruments 31/12/202167% |
Bonds and monetary instruments 31/12/202063% |
| Assets funding other benefits | Assets funding other benefits31/12/202115 | Assets funding other benefits31/12/202015 |
The main actuarial assumptions used for provisions for post-employment benefits and long-term employee benefits under the IEG system are summarised below:
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 increase in the discount rate essentially relates to the increase in risk-free rates observed in 2021.
Changes in the economic and market parameters used led the Group to set the nominal discount rate at 1.30% at 31 December 2021 (0.90% at 31 December 2020).
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 1.7% at 31 December 2021 (1.2% at 31 December 2020).
The obligations are based on wage increase assumptions that are differentiated by age group and employee category, with an average annual rise of 2.8% 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), which are comparable to the wage increases observed in recent years.
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 in mortality between the general French population and the population covered by the IEG regime.
