Those calculations were based on the following financial and demographic assumptions:
2017 | 2016 | 2015 | ||||||||||||||||||||||||||||||||||||||||||||||
France | Germany | USA | UK | France | Germany | USA | UK | France | Germany | USA | UK | |||||||||||||||||||||||||||||||||||||
Discount rate(a)/(b) |
|
0.75% or 1.25% |
|
|
0.75% or 1.25% |
|
3.50% | 2.50% |
|
1.00% or 1.50% |
|
|
1.00% or 1.50% |
|
4.00% | 2.75% |
|
1.50% or 2.25% |
|
|
1.50% or 2.25% |
|
4.00% | 4.00% | ||||||||||||||||||||||||
General inflation rate(c) | 1.50% | 1.50% | 2.00% | 3.10% | 1.50% | 1.50% | 2.00% | 3.15% | 1.75% | 1.75% | 2.25% | 3.15% | ||||||||||||||||||||||||||||||||||||
Pension benefit indexation |
|
1.25% to 2.25% |
|
1.50% | - | 3.10% |
|
1.25% to 2.25% |
|
1.75% | - | 3.15% |
|
1.25% to 2.25% |
|
1.75% | - |
|
3.15% |
|
||||||||||||||||||||||||||||
Healthcare cost inflation rate | 2.00% | - | (d) | 5.81% | 1.50% | 2.00% | - | (d) | 5.96% | 1.50% | 2.00% | - | (d) | 6.10% | 1.50% | |||||||||||||||||||||||||||||||||
Retirement age |
|
62 to 67 |
|
62 |
|
55 to 70 |
|
60 |
|
62 to 67 |
|
62 |
|
55 to 70 |
|
60 |
|
62 to 67 |
|
62 |
|
55 to 70 |
|
60 | ||||||||||||||||||||||||
Mortality table |
|
TGH/ TGF 05 |
|
|
Heubeck RT 2005 G |
|
|
RP2014 G. Scale MP2017 |
|
|
SAPS S2 |
|
|
TGH/ TGF 05 |
|
|
Heubeck RT 2005 G |
|
|
RP2014 G. Scale MP2016 |
|
|
SAPS S2 |
|
|
TGH/ TGF 05 |
|
|
Heubeck RT 2005 G |
|
|
RP2014 G. Scale MP2015 |
|
|
SAPS S2 |
|
(a) |
The discount rates used were based on market rates for high quality corporate bonds with a duration close to that of the expected benefit payments under the plans. The benchmarks used to determine discount rates were the same in 2017, 2016 and 2015. |
(b) |
The rate depends on the duration of the plan (7 to 10 years and more than 10 years, respectively). |
(c) |
Inflation for the euro zone is determined using the average break-even inflation rate of French and German government bonds, by reference to the duration of the principal plans. |
(d) |
No post-employment healthcare benefits are provided in Germany. |