Econocom - 2020 annual report

06 consolidated financial statements

notes to the consolidated financial statements

termination benefits in Italy: • rights vested by employees for each ▶ year of service pro rata to their gross annual compensation, revised every year and paid in advance or upon retirement, voluntary departure or termination, the calculated amount is set aside ▶ under provisions in the balance sheet; At Econocom International Italia and Asystel Italia, all rights arising after 1 January 2007 have been transferred to an external entity and provisions therefore only concern rights vested at 31 December 2006 for which the Group was still liable at 31 December 2020. Since Italy requires rights to be transferred to a third party or treasury fund as from a certain threshold only, certain rights relating to Bizmatica were kept on the Group’s books. “Group” insurance in Belgium: • defined contribution plans, which ▶ provide a guaranteed return on payments made by the employer and

the employee, payable as either a lump-sum benefit or equivalent annuity, or compensation in the event of death during employment. As the payment guaranteed by the insurance company is uncertain, the Group presents these plans as defined benefit plans, even though the amount of such plans in the balance sheet is subject to only minimal changes; company pension plans in Austria: these • are paid on the basis of employees’ years of service and also cover the risk of death and disability. The benefits are also paid over to the surviving spouse in the event of death of the employee. The Group has plan assets in France, Belgium and Austria. The expected rate of return on plan assets has been set at the same level as the rate used to discount the obligation. Provisions for pensions and other post-employment benefit obligations for activities held for sale are recognised under “Liabilities heldfor sale”.

The amounts which Econocom expects to pay directly in 2021 in respect of its employer contribution to the bodies in charge of collecting contributions, will represent around €1 million.

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2020 annual report