Discount rates are calculated using the rates of long-term investment grade corporate bonds (minimum AA rating) with maturities equivalent to the length of the plans assessed. They were determined based on external indexes commonly considered to be benchmarks, namely the iBoxx in Europe and the Aon AA-AAA Bond Universe in the United States.
December 31, 2019 | Pension plans | Post-employment medical cover | ||||
|---|---|---|---|---|---|---|
United States | United Kingdom | Euro zone | Other countries | United States | United Kingdom | |
December 31, 2019 Discount rate | Pension plans 3.98% | Post-employment medical cover 2.80% -2,90% | 1.55% | 0.40% -7,30% | 3.98% | 2.80% -2.90% |
December 31, 2019 Future wage increases | Pension plans n/a | Post-employment medical cover 3.95% -4.20% | 2.25%(1) | 1.00% -8.00% | 5.00% | n/a |
December 31, 2019 Future pension increases | Pension plans n/a | Post-employment medical cover 1.90% -3.60% | 1.70%(1) | n/a | n/a | n/a |
December 31, 2018 | Pension plans | Post-employment medical cover | ||||
|---|---|---|---|---|---|---|
United States | United Kingdom | Euro zone | Other countries | United States | United Kingdom | |
December 31, 2018 Discount rate | Pension plans 3.98% | Post-employment medical cover 2.80% -2.90% | 1.55% | 0.40% -7.30% | 3.98% | 2.80% -2.90% |
December 31, 2018 Future wage increases | Pension plans n/a | Post-employment medical cover 3.95% -4.20% | 2.25%(1) | 1.00% -8.00% | 5.00% | n/a |
December 31, 2018 Future pension increases | Pension plans n/a | Post-employment medical cover 1.90% -3.60% | 1.70%(1) | n/a | n/a | n/a |
(1) For Germany only.
The rate of increase in medical expenses used for 2019 is 6.4% with a gradual decrease to 4.2%.
Pension plans (in millions of euros) | 0.5% increase | ||||
|---|---|---|---|---|---|
United States | United Kingdom | Euro zone | Other countries | Total | |
Pension plans (in millions of euros) Total Change in discount rate Effect on actuarial benefit obligation at year-end | 0.5% increase (10) | (18) | (7) | (10) | (45) |
Pension plans (in millions of euros) Change in the increase rate of salaries Effect on actuarial benefit obligation at year-end | 0.5% increase - | 1 | 5 | 5 | 11 |
Pension plans (in millions of euros) | 0.5% decrease | ||||
|---|---|---|---|---|---|
United States | United Kingdom | Euro zone | Other countries | Total | |
Pension plans (in millions of euros) Total Change in discount rate Effect on actuarial benefit obligation at year-end | 0.5% decrease 11 | 20 | 8 | 10 | 49 |
Pension plans (in millions of euros) Change in the increase rate of salaries Effect on actuarial benefit obligation at year-end | 0.5% decrease - | - | (5) | (6) | (11) |
