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Post-employment Benefits
 12 Months Ended
Dec. 31, 2022
Post-employment Benefits  
Post-employment Benefits

 

22.Post-employment Benefits

The Company sponsors private retirement and pension plans (Unified Plan and Plan III) and Healthcare Plan for medical and dental care ("ProSaúde II" and "ProSaúde III" Plans) for their active employees and their legal dependents. The lifetime sponsorship of the Healthcare Plan for retirees, pensioners and legal dependents is only applied to "Prosaúde II" plan participants. Fundação Copel de Previdência e Assistência is the entity that manages these plans.

22.1Pension plan

The Unified Plan is a Defined Benefit plan - BD in which the income is predetermined, according to each individual's salary. This plan is closed for new participants since 1998.

The Plan III, the only plan available for new participants, is a Variable Contribution - CV plan in the contributory phase and, after retirement, it becomes a Defined Benefit - BD plan.

22.2Healthcare Plan

The Company allocates resources for the coverage of healthcare expenses incurred by their employees and their dependents, within rules, limits and conditions set in "ProSaúde II" and "ProSaúde III" Plans' regulations. Coverage includes periodic medical exams in both plans and is extended to all retirees and pensioners for life only in the "ProSaúde II" plan.

22.3Statement of financial position and statement of income

Amounts recognized in liabilities, under Post-employment benefits, are summarized below:

 

    
  12.31.2022 12.31.2021
Pension plans  949  965
Healthcare plans 1,069,088 1,294,209
  1,070,037 1,295,174
Current 73,814 68,836
Noncurrent 996,223 1,226,338

 

Amounts recognized in the statement of income are shown below:

       
  12.31.2022 12.31.2021 12.31.2020
Employees      
Pension plans  55,607  59,052  57,977
Healthcare plan - post employment   140,293  116,504  94,349
Healthcare plan - active employees   68,897  71,795  75,192
   264,797  247,351  227,518
Management      
Pension plans 1,236 1,300  977
Healthcare plan  148  122  139
  1,384 1,422 1,116
   266,181  248,773  228,634

 

22.4Changes in post-employment benefits
   
Balance as of January 1, 2021 1,493,614
Appropriation of actuarial calculation   116,504
Appropriation of pension and healthcare contributions   130,308
Adjustment related to actuarial (gains) losses (246,626)
Amortizations (198,626)
Balance as of December 31, 2021 1,295,174
Appropriation of actuarial calculation   140,293
Appropriation of pension and healthcare contributions   127,878
Adjustment related to actuarial (gains) losses (a) (291,742)
Amortizations (201,566)
Balance as of December 31, 2022 1,070,037
(a) Adjustments arising from the transfer of liabilities from Copel Serviços to Copel and other subsidiaries.

 

22.5Actuarial valuation in accordance with IAS 19
22.5.1Actuarial assumptions

The actuarial assumptions used to determine the amounts of liabilities and costs are shown below:

         
    2022   2021
  Real  Nominal  Real  Nominal 
Economic        
Inflation p.y. -  5.10% -  5.50%
Expected rate of discount/return p.y.        
Unified Plan - Defined Benefit 6.10% 11.51% 5.20% 10.99%
Unified Plan - Balance 6.12% 11.53% 5.20% 10.99%
Plan III 6.13% 11.54% 5.30% 11.09%
Assistance Plan 6.13% 11.54% 5.30% 11.09%
Salary growth/medical costs        
Unified Plan p.y. 0.00% 5.10% 0.00% 5.50%
Plan III p.y. 1.00% 6.15% 1.00% 6.56%
Assistance Plan - Aging Factor 3.30%  -  5.80%  - 
Demographic        
Mortality Table    AT - 2000     AT - 2000 
Mortality table of individuals with permanent disability    WINKLEVOSS     WINKLEVOSS 
Table of new disability benef it vested    TASA 1927     TASA 1927 
22.5.2Number of participants and beneficiaries
           
  Social Security Plans  
  Unified Plan Plan III Assistance Plan
  12.31.2022 12.31.2021 12.31.2022 12.31.2021 12.31.2022 12.31.2021
Number of active participants 10 18  6,031  6,645  5,775  6,276
Number of Inactive participants  4,170  4,229  5,369  5,018  9,059  8,910
Number of dependent people - - - - 20,867 21,621
 Total   4,180  4,247 11,400 11,663 35,701 36,807
22.5.3Life expectancy after the average age of participants - Annuity Table AT-2000 (in years)

The average age of inactive participants of the healthcare and pension plans of the Company is 68.27 and 67.08 years, respectively.

     
  Unified Plan Plan III
As of December 31, 2022    
Retired participants 19.60 23.42
Pensioner participants 12.48 25.97
As of December 31, 2021    
Retired participants 11.60 23.47
Pensioner participants 13.22 27.02

 

22.5.4Actuarial evaluation

Based on the revision of the assumptions, the amounts of the Unified Plan and Plan III as of December 31, 2022, totaled a surplus of R$595,847 and R$74,421 (R$653,654 and R$10,111, of December 31, 2021). Applicable ruling legislation does not allow any significant reduction in contributions or refunds to the Company based on the current surplus of these plans. For this reason, the Company did not record assets in its balance sheet as of December 31, 2022, reflecting any right to reduce contributions, refund of surplus or other amounts.

           
  Unified
 Plan		 Plan
 III		 Assistance
 Plan		 12.31.2022 12.31.2021
Total liabilities or partially covered 6,029,530  3,457,537  1,234,771 10,721,838 10,973,812
Fair value of the plan assets  (6,625,377) (3,531,958)  (165,683)  (10,323,018)  (10,343,368)
Plan coverage status  (595,847)  (74,421)  1,069,088 398,820 630,444
Unrecognized asset 595,847 74,421  - 670,268 663,765
   -  -  1,069,088  1,069,088  1,294,209

The Company adjusted their assistance liabilities through the actuarial report issued on December 31, 2022, as presented in the Statements of Comprehensive Income.

22.5.5Changes in actuarial liabilities
       
  Unified Plan Plan III Assistance Plan
Present value of net actuarial obligations as of January 1, 2021 6,760,824 3,344,723 1,714,637
Cost of services  252 2,006 7,368
Cost of interest 481,656 246,256 125,132
Benefits paid  (511,621)  (233,908)  -
Actuarial (gain) losses  (585,510)  (21,984)  (356,019)
Present value of net actuarial obligations as of December 31, 2021 6,145,601 3,337,093 1,491,118
Cost of services  169 2,018 6,172
Cost of interest 673,724 364,901 155,389
Benefits paid  (523,792)  (264,096) (342)
Actuarial (gain) losses  (266,172) 17,621  (417,566)
Present value of net actuarial obligations as of December 31, 2022 6,029,530 3,457,537 1,234,771
22.5.6Changes in actuarial assets
       
  Unified Plan Plan III Assistance Plan
Fair value of the Plan's assets as of January 1, 2021 7,568,268 3,629,780 222,148
Return estimated for assets 837,120 133,837 6,366
Contributions and distributions 26,661 136,730  -
Benefits paid  (511,621)  (233,908)  -
Actuarial gain (losses)  (1,121,173)  (319,235)  (31,605)
Fair value of the Plan's assets as of December 31, 2021 6,799,255 3,347,204 196,909
Return estimated for assets 743,845 274,486 26,390
Contributions and distributions 29,808 151,606  -
Benefits paid  (523,792)  (264,096)  -
Actuarial gain (losses)  (423,739) 22,758  (57,616)
Fair value of the Plan's assets as of December 31, 2022 6,625,377 3,531,958 165,683
22.5.7Estimated costs

The estimated net periodic plan costs (income) for 2023 for each plan are shown below:

       
  Unified Plan Plan III Assistance Plan
Cost of current service 205  3,966  6,879
Estimated cost of interest 700,311 397,093 141,876
Expected return on plan assets  (769,615)  (410,063)  (18,629)
Expected employee contributions  (89) (1,983) -
Costs (income or loss)  (69,188)  (10,987) 130,126
22.5.8Sensitivity analysis

The following table shows the effect of a one percent increase or decrease in the assumed care costs, in the aggregate of the cost of service and cost of interest components and the accumulated post-employment benefit obligation.

     
  Projected scenarios
  Increase by 1% Decrease in 1%
Sensitivity of long-term interest rate    
Impacts on the obligations of the pension  (826,777) 823,400
Impacts on the obligations of healthcare program  (195,345) 185,544
Sensitivity of growth rate of the medical costs    
Impacts on the obligations of healthcare program  82,208  (80,982)
Impact on cost of service for the following financial year of healthcare program   392 (386)
Sensitivity of the service cost    
Impacts on the obligations of the pension   320 (313)
Impacts on the obligations of healthcare program  1,040 (883)
22.5.9Benefits payable

The estimated benefits to be paid by the Company in the next five years and the total benefits for the following fiscal years are shown below:

         
  Unified Plan Plan III Assistance Plan Total 
2023  317,523  153,226 81,010 551,759
2024  316,790  152,659 81,114 550,563
2025  316,908  152,239 79,756 548,903
2026  316,481  151,790 76,382 544,653
2027  315,703  151,358 73,076 540,137
2028 to 2052 3,885,982 2,598,345 759,895 7,244,222

 

22.5.10Asset allocation and investment strategy

The asset allocation for the Company pension and healthcare plans at the end of 2022 and the allocation goal for 2023, by asset category, are shown below:

     
  Goal for 2023 (*) 2022
Fixed income 77.2% 71.1%
Variable income 5.3% 10.0%
Loans 1.2% 1.2%
Real estate 5.6% 2.7%
Investment structuring 8.7% 10.2%
Investments abroad 2.0% 4.8%
  100.0% 100.0%
(*) Target based on the total investment of each plan.

 

In addition, information on the allocation of assets of pension plans sponsored by the Company:

         
  Unified Plan Plan III
  target (%)(*) minimum (%) target (%) minimum (%)
Fixed income 86.0% 60.0% 67.0% 40.0%
Variable income 3.0% 2.0% 8.0% 3.0%
Loans 0.5% 0.0% 2.0% 0.0%
Real estate 5.5% 0.0% 6.0% 0.0%
Investment structuring 5.0% 0.0% 13.0% 0.0%
Investments abroad 0.0% 0.0% 4.0% 0.0%
(*) Target 2022.

 

Management of Fundação Copel decided to keep a more conservative approach investing in variable income in relation to the allowed legal limit, which is 70%.

22.5.11Additional information

The Company made contributions to Plan III (variable contribution plan) for all active employees on December 31, 2022, 2021 and 2020, in the amounts of R$72,353, R$64,883 and R$67,515, respectively.