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E
Financial
E.4
Consolidated financial statements
Atos
|
Registration Document 2016
187
E
Actuarial assumptions
Group obligations are valued by independent actuaries, based on assumptions that are periodically updated.
These assumptions are set out in the table below:
United Kingdom
Eurozone
2016
2015
2016
2015
Discount rate as at December 31
st
2.80%
3.90% 1.40% ~ 1.95% 2.05% ~ 2.65%
Inflation assumption as at December 31
st
RPI: 3.25% RPI: 3.10%
1.45%
1.75%
CPI: 2.25% CPI: 2.10%
to plans with a shorter duration.
The higher discount rate for the Eurozone applies to plans with a
duration of more than 15 years, the lower discount rate applies
The inflation assumption is used for estimating the impact of
indexation of pensions in payment or salary inflation based on
the various rules of each plan.
Sensitivity of the defined benefit obligations of the significant plans to the discount rate and inflation rate assumptions is as follows:
Discount rate
+25bp
Inflation rate
+25bp
United Kingdom main pension plans
-5.2%
+4.0%
German main pension plans
-4.1%
+2.4%
inflation assumption would have on salary increase assumptions
for the United Kingdom.
independent actuaries and do not include cross effects of the
various assumptions, they do however include effects that the
These sensitivities are based on calculations made by
Plan assets
Plan assets were invested as follows:
December
31, 2016
December
31, 2015
Equity
17%
18%
Bonds/Interest Rate Swaps
68%
70%
Real Estate
5%
5%
Cash and Cash equivalent
3%
1%
Other
7%
6%
Of these assets, 92% is valued on market value, 6% relates to
investment managers and 2% relates to insurance contracts.
property, private equity and infrastructure investments where
valuations are based on the information provided by the
of the interest rate hedging program operated by the Atos
United Kingdom pension plans, which aims to hedge a significant
A significant part of the Bonds and Interest Rate Swaps are part
portion of funding liabilities. None of the plans are hedged for
longevity risks.
Atos securities or assets used by the Group are not material.
Situation of the United Kingdompension funds and
impact on contribution for 2017
The Group expects to contribute € 47.4 million to its United
Kingdom schemes next year versus € 48.8 million in 2016.
Prepaid pension situations on balance sheet
the United Kingdom, and is supported by appropriate refund
expectations according to IFRIC 14.
The net asset of € 96.2 million mostly relates to one scheme in