XML 123 R84.htm IDEA: XBRL DOCUMENT v3.8.0.1
Supplemental pension plans (Tables)
 12 Months Ended
Dec. 31, 2017
Supplemental pension plans (Tables) [Abstract]  
In addition to this benefit, Bradesco and its subsidiaries offer other benefits to their employees and administrators, including health insurance, dental care, life and personal accident insurance, and professional training

In addition to this benefit, Bradesco and its subsidiaries offer other benefits to their employees and administrators, including health insurance, dental care, life and personal accident insurance, and professional training. These expenses, including the aforementioned contributions, totaled the amount of R$ 5,594,368 thousand in the year ending December 31, 2017 (2016 - R$ 3,826,715 thousand).

 

 

R$ thousand

Years ended December 31

2017

2016

(i)     Projected benefit obligations:

 

At the beginning of the year

2,141,393

1,162,005

Balance from an acquired institution

- 

761,119

Cost of current service

186

(1,077)

Interest cost

227,980

181,595

Participant's contribution

1,197

2,831

Actuarial gain/(loss)

144,624

182,762

Benefit paid

(192,042)

(147,842)

At the end of the year

2,323,338

2,141,393

 

(ii)    Plan assets comprise:

 

 

At the beginning of the year

2,127,872

1,047,782

Balance from an acquired institution

- 

883,858

Expected earnings

423,546

307,728

Contributions received:

 

Employer

14,957

33,515

Employees

1,197

2,831

Benefit paid

(192,043)

(147,842)

At the end of the year

2,375,529

2,127,872

 

(iii)   Financial position:

 

 

Plans in deficit

(149,571)

(130,293)

Plans in surplus

201,762

116,772

Net balance

52,191

(13,521)
The net cost/(benefit) of the pension plans

The net cost/(benefit) of the pension plans recognized in the consolidated statement of income includes the following components:

 

 

R$ thousand

Years ended December 31

2017

2016

2015

Projected benefit obligations:

 

 

 

Cost of service

186

(1,077)

(579)

Cost of interest on actuarial obligations

227,980

181,595

133,385

Expected earnings from the assets of the plan

(227,360)

(174,937)

(120,960)

Net cost/(benefit) of the pension plans

806

5,581

11,846
Benefit obligations and net periodic benefit cost

Benefit obligations and net periodic benefit cost for the years 2017 and 2016 for our subsidiaries, were determined using the following assumptions:

 

 

On December 31

2017

2016

Discount rate (1)

8.5% - 10% p.a.

11.1% p.a.

Expected long-term rate of return on the assets

8.5% - 10% p.a.

11.1% p.a.

Increase in salary levels

4.3% p.a.

4.8% p.a.

 

(1)    In 2017, considering an inflation rate of 4.3% p.a. and a real discount rate of 4.0% - 5.5% p.a. (2016 - 4.8% and 6.0% p.a., respectively).
The assets of pension plans

The assets of pension plans are invested in compliance with the applicable legislation (government securities and private securities, listed company shares and real estate properties) and the weighted-average allocation of the pension plan's assets by category is as follows:

 

 

Assets of the Alvorada Plan

Assets of the Bradesco Plan

Assets of the Kirton Plan

Assets of the Losango Plan

On December 31

On December 31

On December 31

On December 31

2017

2016

2017

2016

2017

2016

2017

2016

Asset categories

 

 

 

 

 

 

Equities

-

-

4.7%

3.9%

-

-

17.3%

18.8%

Fixed income

92.7%

93.1%

90.6%

91.3%

100.0%

100.0%

82.7%

81.2%

Real estate

5.7%

5.3%

2.6%

2.7%

-

-

-

-

Other

1.6%

1.6%

2.1%

2.1%

-

-

-

-

Total

100.0%

100.0%

100.0%

100.0%

100.0%

100.0%

100.0%

100.0%
The sensitivity analysis of the benefit plan obligations

Below is the sensitivity analysis of the benefit plan obligations, showing the impact on the actuarial exposure (8.5 - 10.0% p.a.) assuming a 1 b.p. change in the discount rate:

 

Discount rate

Sensitivity Analysis

Effect on actuarial liabilities

Effect on the present value of the obligations

9.5% - 11.0% p.a.

Increase of 1 p.p.

reduction

(256,532)

7.5% - 9.0% p.a.

Decrease of 1 b.p.

increase

303,154