27. Employee Benefit Obligations
in PLN m
| Dec 31 2012 | Dec 31 2011 | |
|---|---|---|
| Length-of-service awards | 175 | 192 |
| Retirement severance payments | 140 | 128 |
| Wages and salaries payable | 72 | 66 |
| Amounts payable for unused holiday entitlement | 55 | 42 |
| Termination benefits | 105 | 57 |
| Other employee benefit obligations | 128 | 21 |
| Total | 675 | 506 |
| Non-current | 319 | 268 |
| Current | 356 | 238 |
| 675 | 506 |
27.1. Actuarial income statement for length-of-service award and retirement severance payment obligations
in PLN m
| Dec 31 2012 | Dec 31 2011 | |
|---|---|---|
| Length-of-service awards | ||
| Value of obligation shown in the statement of financial position at beginning of the period | 192 | 209 |
| Interest cost | 4 | 6 |
| Current service cost | 8 | 7 |
| Past service cost | (3) | - |
| Benefits paid | (61) | (55) |
| Actuarial gain/loss | 8 | 27 |
| Gains/losses due to curtailments or settlements | - | (2) |
| Changes in the Group | 28 | - |
| Reclassification into liabilities associated with assets held for sale | (1) | - |
| Value of obligation shown in the statement of financial position at end of the period | 175 | 192 |
| Retirement severance payments | ||
| Value of obligation shown in the statement of financial position at beginning of the period | 128 | 119 |
| Current service cost | 8 | 8 |
| Interest cost | 4 | 6 |
| Net actuarial gain/loss recognised during the reporting period | 2 | 3 |
| Benefits paid | (19) | (9) |
| Past service cost | 1 | 1 |
| Gains/losses due to curtailments or settlements | - | - |
| Changes in the Group | 16 | - |
| Reclassification into liabilities associated with assets held for sale | - | - |
| Value of obligation shown in the statement of financial position at end of the period | 140 | 128 |
| Total value of obligation shown in the statement of financial positionat end of the period | 315 | 320 |
The technical rate adopted to calculate the discounted value of the future retirement severance payment obligations was 2.00%, as the resultant of the 3.73% annual return on assets and the 1.7% forecast annual salary growth (at the end of 2011 the adopted technical rate was 2.8%, as the resultant of 5.87% and 3.0%, respectively).
As at the end of 2012, the Group entities had set up provisions for costs related to employment streamlining and voluntary termination programmes. These provisions were recognised on the basis of the Voluntary Termination Programmes (the “Programmes”) and Workforce Streamlining Schemes (the “Schemes”) adopted and announced by companies of the PGNiG Group. The purpose of the Programmes and the Schemes is to improve the Group’s operational efficiency and reduce operating costs.
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