Change in provisions for employee benefits for the year ended 31 December 2020
Export to ExcelProvision for retirement, disability and similar benefits | Employee electricity rates | Social Fund | Jubilee bonuses | Provisions, total | |
---|---|---|---|---|---|
Opening balance | 378 423 | 450 154 | 119 410 | 449 502 | 1 397 489 |
Current service costs | 26 892 | 6 063 | 4 587 | 39 090 | 76 632 |
Actuarial gains and losses, of which: | 14 112 | 79 488 | 49 705 | 7 650 | 150 955 |
arising from changes in financial assumptions | 31 699 | 76 178 | 24 494 | 28 960 | 161 331 |
arising from changes in demographic assumptions | (555) | – | 602 | 650 | 697 |
arising from other changes | (17 032) | 3 310 | 24 609 | (21 960) | (11 073) |
Benefits paid | (25 317) | (5 970) | (4 223) | (45 531) | (81 041) |
Past-service costs | (8) | (533 319) | – | – | (533 327) |
Interest expense | 6 917 | 3 584 | 2 436 | 8 472 | 21 409 |
Reclassification to liabilities associated with assets held for sale | (21 232) | – | – | – | (21 232) |
Closing balance | 379 787 | – | 171 915 | 459 183 | 1 010 885 |
Non-current | 341 593 | – | 167 597 | 413 024 | 922 214 |
Current | 38 194 | – | 4 318 | 46 159 | 88 671 |
Change in provisions for employee benefits for the year ended 31 December 2019
Export to ExcelProvision for retirement, disability and similar benefits | Employee electricity rates | Social Fund | Jubilee bonuses | Provisions, total | |
---|---|---|---|---|---|
Opening balance | 331 270 | 370 267 | 91 720 | 395 572 | 1 188 829 |
Current service costs | 16 501 | 9 066 | 2 736 | 22 734 | 51 037 |
Actuarial gains and losses, of which: | 42 973 | 71 633 | 25 714 | 66 773 | 207 093 |
arising from changes in financial assumptions | 40 623 | 60 007 | 16 016 | 37 262 | 153 908 |
arising from changes in demographic assumptions | 4 843 | 7 097 | 1 892 | 4 983 | 18 815 |
arising from other changes | (2 493) | 4 529 | 7 806 | 24 528 | 34 370 |
Benefits paid | (21 299) | (11 524) | (3 325) | (46 070) | (82 218) |
Past-service costs | 56 | – | – | – | 56 |
Interest expense | 8 922 | 10 712 | 2 565 | 10 493 | 32 692 |
Closing balance | 378 423 | 450 154 | 119 410 | 449 502 | 1 397 489 |
Non-current | 338 410 | 436 769 | 115 928 | 403 437 | 1 294 544 |
Current | 40 013 | 13 385 | 3 482 | 46 065 | 102 945 |
The past service costs for the year ended 31 December 2020 result from agreements concluded in May 2020 between the management boards of selected subsidiaries and representative trade union organisations and additional protocols signed amending the company collective bargaining agreements in these companies. On the basis of the additional protocols, changes were introduced to the payments of the cash equivalent for the concessionary use of electricity by pensioners and other eligible persons who are not employees of the above companies, which, in light of the regulations of IAS 19 Employee Benefits, formed the basis for the reversal of provisions for the employee tariff. The cumulative effect of the above changes on the reversal of provisions for the employee tariff in the year ended 31 December 2020 amounted to PLN 533,319 thousand, of which the amount of PLN 299,408 thousand relating to employees as future pensioners decreased the Group’s operating expenses, while the amount of PLN 233,911 thousand relating to current pensioners had an impact of the increase in the Group’s other operating income.
In the year ended 31 December 2020, a change in actuarial assumptions, including mainly a decrease in the discount rate adopted for the calculation, increased actuarial provisions in the amount of PLN 150,955 thousand, of which PLN 7 650 thousand increased the Group’s operating expenses and PLN 143,305 thousand was recognised in the Group’s other comprehensive income.
Sensitivity analysis
As at 31 December 2020, a sensitivity analysis of the measurement results to a change in the financial discount rate and to changes in planned base amount increases in the range -0.5 p.p./+0.5 p.p. was carried out.
The table below shows the carrying amount of individual provisions and provisions calculatedbased on the changed assumptions andhow these carrying amounts would change with different assumptions applied (deviation):
Export to ExcelProvision title | Carrying amount as at 31 December 2020 | Financial discount rate | Planned base increases | ||||||
0,5 p.p. | +0,5 p.p | -0,5 p.p | +0,5 p.p | ||||||
---|---|---|---|---|---|---|---|---|---|
balance | deviation | balance | deviation | balance | deviation | balance | deviation | ||
Provision for retirement, disability and similar benefits | 379 787 | 398 754 | 18 967 | 362 238 | (17 549) | 363 044 | (16 743) | 397 658 | 17 871 |
Costs of appropriation to Social Benefits Fund | 171 915 | 188 238 | 16 323 | 157 612 | (14 303) | 157 835 | (14 080) | 187 781 | 15 866 |
Jubilee bonuses | 459 183 | 476 790 | 17 607 | 442 686 | (16 497) | 446 599 | (12 584) | 472 464 | 13 281 |
Total | 1 010 885 | 1 063 782 | 52 897 | 962 536 | (48 349) | 967 478 | (43 407) | 1 057 903 | 47 018 |
effect on profit/loss | 17 607 | (16 497) | (12 584) | 13 281 | |||||
effect on other comprehensive income | 35 290 | (31 852) | (30 823) | 33 737 |
The Group classifies provisions as current and non-current based on estimates regarding distribution of payments over time, prepared with the use of actuarial methods.
Provisions for employee benefits by maturity
Export to ExcelYear | Retirement, disability and similar benefits | Social Fund | Jubilee bonuses | Provisions, total |
---|---|---|---|---|
2021 | 38 194 | 4 318 | 46 159 | 88 671 |
2022 | 20 454 | 4 773 | 39 458 | 64 685 |
2023 | 24 104 | 4 913 | 37 891 | 66 908 |
2024 | 19 526 | 5 047 | 35 600 | 60 173 |
2025 | 19 128 | 5 162 | 32 511 | 56 801 |
Other years | 258 381 | 147 702 | 267 564 | 673 647 |
Total | 379 787 | 379 787 | 459 183 | 1 010 885 |