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.
Pension plans | Post-employment medical cover | |||||
|---|---|---|---|---|---|---|
December 31, 2020 | United States | United Kingdom | Euro zone | Other Country | United States | United Kingdom |
Discount rate | Discount rate Pension plans 2,11 % | Discount rate Post-employment medical cover 1.60% -1.65% | 0.60% | 0% -5.20% | 2.11% | 1.60% -1.65% |
Future wage increases | Future wage increases Pension plans n/a | Future wage increases Post-employment medical cover 3.25% | 2.25%(1) | 1.25% -8% | 5% | n/a |
Future pension increases | Future pension increases Pension plans n/a | Future pension increases Post-employment medical cover 2% -3.50% | 1.70% (1) | n/a | n/a | n/a |
(1) For Germany only.
Pension plans | Post-employment medical cover | |||||
|---|---|---|---|---|---|---|
December 31, 2020 | United States | United Kingdom | Euro zone | Other Country | United States | United Kingdom |
Discount rate | Discount rate Pension plans 2.84% | Discount rate Post-employment medical cover 1.75% -1.85% | 0.80% | (0.05)% -6.30% | 2.84% | 1,75% -1.85% |
Future wage increases | Future wage increases Pension plans n/a | Future wage increases Post-employment medical cover 4.10% -3.85% | 2.25%(1) | 1,25% -8% | 5 % | n/a |
Future pension increases | Future pension increases Pension plans n/a | Future pension increases Post-employment medical cover 1.80% -3.40% | 1.70%(1) | n/a | n/a | n/a |
(1) For Germany only.
The rate of increase in medical expenses used for 2020 is 6.5% with a gradual decrease to 4.3%.
