Carrefour - 2017 Registration Document

5 CONSOLIDATED FINANCIAL STATEMENTS AS OF DECEMBER 31, 2017 Notes to the Consolidated Financial Statements CARREFOUR | 2017 REGISTRATION DOCUMENT 257 In 2009, the Group set up a supplementary pension plan, amended in 2015. The main characteristics of the plan are as follows: eligibility: plan participants must have completed at least three ● years’ service at the time of retirement and their annual compensation must be greater than 18 times the annual ceiling for social security contributions; benefits: 2.75% of the reference compensation per year of ● service, subject to the applicable performance conditions being met for each year. No benefits are paid if a minimum number of years has not been validated in connection with the performance conditions; years of service taken into account for the calculation of plan ● benefits: years of service with the Carrefour group under consecutive or non-consecutive employment contracts. The plan’s terms do not provide for any increase in benefits for participants who have completed more than a certain number of years’ service; the reference compensation is calculated as the average of the ● last three salaries (basic salary + annual variable compensation) received over the last three calendar years preceding retirement or 60 times the annual ceiling for social security contributions, whichever is lower; annual benefit cap: 25% of the reference compensation and the ● difference between 45% of the reference compensation and the total basic and supplementary pension benefits received by the plan participant; reversionary pension: upon the participant’s death, payable to ● the surviving spouse in an amount equal to 50% of the original benefit. Belgian plans The Group’s main commitments in Belgium concern “prepensions” and the “solidarity fund”. The prepension scheme provides for the payment of unemployment benefits during the period from the retirement age proposed in the collective bargaining agreement to the statutory retirement age. Carrefour is committed to topping up the benefits paid by the Belgian State, so that the individuals concerned receive 95% of their final net salary. The retirement age under Belgian law, amended in 2015, is 67 (unless otherwise provided). Under the collective bargaining agreement applicable to Carrefour, employees are eligible for prepension benefits from the age of 62 (unless otherwise provided). The solidarity fund is a corporate supplementary pension plan that offers participants the choice between a lump sum payment on retirement or a monthly pension for the rest of their lives. The plan was closed in 1994 and replaced by a defined contribution plan. Consequently, the projected benefit obligation only concerns pension rights that vested before 1994. Furthermore, as of 2016, an additional provision has been recorded for defined contribution plans with a minimum legal guaranteed yield, in view of the current economic conditions. Italian plans The Group’s commitments in Italy primarily concern the Trattemento di Fine Rapporto (TFR) deferred salary scheme. The TFR scheme underwent a radical reform in 2007, with employers now required to pay contributions to an independent pension fund in full discharge of their liability. The Group’s obligation therefore only concerns deferred salary rights that vested before 2007. Net expense for the period 10.1.2 The expense recorded in the income statement is detailed as follows: 2016 (in millions of euros) France Belgium Italy Other countries Group total Service cost (1) (112) 13 0 1 (98) Interest cost (discount effect) 17 10 2 1 30 Return on plan assets (1) (4) - (0) (5) Other items 3 0 - (0) 3 EXPENSE (INCOME) FOR 2016 (93) 19 3 1 (71) 2017 (in millions of euros) France Belgium Italy Other countries Group total Service cost (1) 31 12 0 1 44 Interest cost (discount effect) 11 6 2 1 18 Return on plan assets (0) (3) - (0) (3) Other items (1) - - - (1) EXPENSE (INCOME) FOR 2017 40 15 2 1 58 The following table presents details of service cost: (1)