II - Provisions: Specific points and Examples 

2. Employee Benefits

2.5. Closing:

2.5.1. Request for information IAS 19 quarterly reporting

2.5.1.1. Information needed for FUNDED plans by reporting entity (all cumulative data) at the quarterly closing periods (31st of March, 30th of June, 30th of September)

• 1. Asset information: current fair value or best estimate (for example, value at the end of the previous month) of market value at the quarterly closing date. If it's impossible to precisely allocate the asset value of a common fund to several entities, the amounts should be prorated for each entity;
• 2. Actual employer contributions at the end of the quarters (company cash payments to the pension fund, group insurance) and a forecast at year-end;
• 3. An estimate of employee contributions at the end of the quarters and a forecast at year-end;
• 4. An estimate of benefit payments at the end of the quarters (benefits paid by the external entity: pension fund, group insurance) and a forecast at year-end.

2.5.1.2. Information needed for UNFUNDED plans by entity

• 5. Direct benefit payment paid by the company to the beneficiaries

For flows (2) and (5), ensure that these match the actual uses of provisions as reported in the provisions quarterly attachment of the corresponding quarter.

If the actual information is not available we suggest that you provide us with the most up-to date current information and with your best estimates for the missing period, indicating how you made this estimate.

Finally, we should know, whether a "Special Event", which could potentially influence the IAS 19 accounting, occurred during the year. Such events could be plan changes or mergers, acquisitions, spin-offs, transfers, etc.

This information has to be provided for each quarter using the template Excel files immediately after the quarterly closing, i.e. at D+10 at the latest.

2.5.1.3. Document L52PRO - Pension Plans - to be filled in at the end of each quarter

The total net expense and the headings related to change in net liability do not have to be filled in manually.

The values are copied automatically from the document L51PRO - Provisions:

• Net expense recognized = sum of flows F25 and F35 on the corresponding provisions headings and F30 on pension fund surplus headings;
• Net amount recognized at beginning of period = flow F00 on the corresponding provision or pension fund surplus headings;
• Net amount recognized at end of period = flow F99 on the corresponding provision or pension fund surplus headings;
• Employer contribution - Direct Benefits Payment = flow F36 on the corresponding provision or F20 on the corresponding pension fund surplus headings.
• Acquisition/Disposal & Interco Transfers = sum of flows F50, F60, F85 and F70 on the corresponding provision or pension fund surplus headings.

As a consequence, only the detail of the Net Expense for Retirement Benefits and Other Post-Employment Benefits must be filled in in this document and must match the total net expense; any inconsistency would have to be solved through the Provisions document..

2.5.2. Yearly closing - Information required for annual disclosures at Group level

The Group Coordinating Actuaries coordinates the IAS 19 disclosures process for the Group.
All informations needed to determine the year-end benefit expense and disclosure information must be gathered.

2.5.2.1. Information needed for FUNDED plans by entity and by plan

1. Asset information: current market value and estimate of market value at 31 December of the year.
2. For disclosures purposes, we also need the share of Solvay companies financial instruments (shares, …) and property occupied by or assets used by the Solvay companies, included in the plan assets (IAS 19, par 120 d).
3. Estimate of employer contributions during the current year (company cash payments to the pension fund, group insurance).
   Ensure with your finance department that these reconcile with the actual uses of the provisions.
4. Estimate of employee contributions during the current year.
5. Estimate of benefit payments during the current year (benefits paid by the external entity : pension fund, group insurance).

2.5.2.2. Information needed for UNFUNDED plans by entity and by plan

1. Estimate of direct benefit payments (benefits directly paid by the company to the beneficiaries).
   Ensure with your finance department that these reconcile with the actual uses of the provisions.

All informations above are estimates. Provide us with the most up-to date actual information and with your best estimates for the missing period, indicating how the estimate was made.

Give special attention to the eventual charges on the amounts mentioned above. If the liabilities that we received from you earlier, include any charges or/and taxes, those should be included. If this is not the case, we need the information without charges/taxes.

It is important to obtain all amounts split by entity and by plan. The entities and plans for which we need the information correspond to the entities for which we sent you the current year expense information.  In case of any doubts, contact us and we will send you a list with all entities and plans concerned.

Finally, we should know whether any "Special Event", which could potentially influence the IAS 19 accounting, occurred during the year.  Among others such events could be plan changes or mergers, acquisitions, spin-offs, transfers, ...

In order to meet the corporate deadline and to provide timely the final end of year IAS 19 accounting figures, the deadline date will be confirm in November each year.

2.5.2.3. Information needed concerning DC plans

For Defined Contribution plans you must fill in the flow XF7800 with the total yearly contributions paid by the employer to a separate entity or fund.