32. Liabilities due to employee benefits

Based on an arrangement entered into by the representatives of staff and the Group, its employees are entitled to specific benefits other than remuneration, i.e.:

• jubilee bonuses;
• retirement and disability benefits;
• electricity allowance;
• an appropriation to the Company’s Social Benefits Fund.

The present value of the related future liabilities has been measured using actuarial methods. Calculations were made using basic individual data for the employees of Enea SA as at 31 December 2014 (taking into account their gender) regarding:

• age;
• length of service with the Company;
• total length of service;
• remuneration constituting the assessment basis for jubilee benefits as well as retirement and disability benefits.

Additionally, the following assumptions were made for the purpose of the analysis:

• the probable number of leaving employees was determined based on historical data concerning staff turnover in the Company and industry statistics,
• the value of minimum remuneration in the Polish economy since 1 January 2015 was assumed at PLN 1,750.00 thousand,
• pursuant to announcements of the Chairman of the Central Statistical Office, the average salary in the Polish economy, less premiums for retirement, pension and health insurance paid by the insured was assumed at PLN 2,917.14 (average amount assumed for the second half of 2010, which will constitute the basis for calculating the appropriation to the Company’s Social Benefits Fund in 2014 under the amendment to the Act on Company Social Benefits Fund dated 8 November 2013),
• under the assumptions defined at the corporate level, the growth of the average salary in the Polish economy was assumed at 16.3 % in 2014, 3.9% in 2015, 4.5% in 2016, 4.9% in 2017-2019, 4.8% in 2020-2021, 4.7% in 2022-2023, 4.6% in 2024 and at 4.5% in the remaining period of the projection,
• mortality rate and the probability of receiving benefits were adopted in line with the 2013 Life Expectancy Tables published by the Central Statistical Office;
• the value of the provision for disability benefits was not determined separately but the individuals receiving disability allowance were not taken into consideration in calculating the employee turnover ratio;
• standard retirement age was assumed under particular regulations of the Act of Pension, excluding these employees, which fulfill the conditions expected to earlier  retirement;
• the long-term salaries and wages increase rate was adopted at the level of 1.0% in 2015, 2.038% in 2016, 2.418% in 2017 and 2.5% in the remaining years (as at 31 December 2013: 2.3%),
• the valuation procedure includes plans to launch again Voluntary Redundancy Program in the Company, under which during the period from 1 January 2015 till 30 June 2015 the employment relationship will be terminated with:
  • 50% persons qualified to eligible employees of the Group I,
  • 50% persons qualified to eligible employees of the Group II,
  • 7.7% persons qualified to eligible employees of the Group III,
• the interest rate for discounting future benefits was adopted at the level of 2.5% (as at  31 December 2013: 4.26%),
• value of the annual equivalent of the electricity allowance paid in 2015 was adopted at the level of PLN 1,382.57 (as at 31 December 2013 PLN 1,452.24),
• the average rise in the cash equivalent of the electricity allowance was adopted for 2015 at the level of 1.6%, for  2016 (+­) 4.0%, for 2017 (+­) 4.9%, for 2018 (+­) 5.9 %, for 2019-2026 at the level of 3.9% and the following years 2.5% (as at 31.12.2013 the increase in 2014 at the level of (-)2.9%, for 2015 (+­) 10.2%, for 2016 (+­) 6.7%, (+­) 2017 (+­) 3.9%, for  2018- 2025 at the level of 4.0%, for 2026-2027 at the level of 4.1% and the following years at the level of 2.5% ).

To determine the amount of provisions for employee benefits Projected Unit Credit Method was used, the same method was used for the analysis of sensitivity for defined benefit plan.

On 10 December 2014 the Management Board of Enea SA adopted a resolution to launch the Voluntary Redundancy Program (Program). The Program is dedicated to Employees:

• employed under a contract of employment no matter the type and nature of their work;
• not being in the period of notice and who have not signed an agreement to terminate the employment contract outside the Program with a future date of the agreement;
• not being employed on other civil or employment contracts in another entity within Enea Group as at the date of employment contract termination within the Program;
• belonging to one of the following groups:
  • Group no. I – Employees have reached a standard retirement age till 31 December 2014 and did not terminate the employment contract due to retirement or will acquire pension rights arising from achieving standard retirement age till 31 December 2015;
  • Group no. II - Employees who are to achieve the standard retirement age within 3 years inclusive, counting from 31 December 2015;
  • Group no. II - Employees who acquire pension rights after 31 December 2018.

The program is valid from 15 December 2014 till 30 June 2015.

2014

2013

Sensitivity analysis for defined benefit plans

Maturity of liabilities due to defined benefit plans

Other long-term employee benefits - jubilee bonuses