XML 231 R29.htm IDEA: XBRL DOCUMENT v3.24.1.u1
Post-employment Benefits
 12 Months Ended
Dec. 31, 2023
Notes and other explanatory information [abstract]  
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:

 

Schedule of liabilities under post-employment benefit    
  12.31.2023 12.31.2022
Pension plans                      426                      949
Healthcare plans            1,483,817            1,069,088
             1,484,243            1,070,037
Current                 85,833                 73,814
Noncurrent            1,398,410               996,223

  

Amounts recognized in the statement of income are shown below:

Schedule of post-employment benefits recognized in the statement of income      
    Restated Restated
  12.31.2023 12.31.2022 12.31.2021
Employees      
Pension plans               55,320                  52,980                  56,454
Healthcare plan - post employment              128,652                138,921                115,587
Healthcare plan - active employees                74,546                  66,912                  69,556
              258,518                258,813                241,597
Management      
Pension plans                 1,441                    1,236                    1,300
Healthcare plan                    200                       148                       122
                  1,641                    1,384                    1,422
              260,159                260,197                243,019

 

22.4Changes in post-employment benefits

 

 

Schedule of changes in post-employment benefits  
Balance as of January 1, 2022                   1,295,174
Appropriation of actuarial calculation                       140,293
Appropriation of pension and healthcare contributions                         127,878
Actuarial gains and losses                     (291,742)
Amortizations                    (201,566)
Balance as of December 31, 2022 1,070,037
Appropriation of actuarial calculation                       130,126
Appropriation of pension and healthcare contributions                         139,701
Actuarial losses (a)                      379,126
Amortizations                    (225,421)
Reclassification (b)                        (9,326)
Balance as of December 31, 2023                   1,484,243
(a) Losses arising mainly from the reduction in the discount rate, increase in medical costs and expected variation of the obligation by the current service cost and interest cost.
(b) Reclassification to Liabilities classified as held for sale (Note 39).  

 

  

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:

Schedule of actuarial assumptions        
Consolidated   2023   2022
  Real  Nominal  Real  Nominal 
Economic        
Inflation p.a. -    3.00% -    5.10%
Expected rate of discount/return p.a.        
Unified Plan - Defined Benefit 5.33% 8.49% 6.10% 11.51%
Unified Plan - Balance 5.36% 8.52% 6.12% 11.53%
Plan III 5.37% 8.53% 6.13% 11.54%
Assistance Plan 5.48% 8.64% 6.13% 11.54%
Salary growth/medical costs        
Unified Plan p.a. 1.00% 4.03% 0.00% 5.10%
Plan III p.a. 1.00% 4.03% 1.00% 6.15%
Assistance Plan - Aging Factor  3.30%                         -    3.30%                        -   
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

 

Schedule of participants and beneficiaries            
Consolidated Social Security Plans  
  Unified Plan Plan III Assistance Plan
  12.31.2023 12.31.2022 12.31.2023 12.31.2022 12.31.2023 12.31.2022
Number of active participants                   10                   10              5,806              6,031              5,687              5,775
Number of Inactive participants              4,115              4,170              5,379              5,369              8,857              9,059
Number of dependent people                      -                      -                      -                      -            19,925            20,867
 Total               4,125              4,180            11,185            11,400            34,469            35,701

 

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 is 68.55 and 69.08 years, respectively.

   
Consolidated Unified Plan Plan III
As of December 31, 2023    
Retired participants                   12.73                   21.35
Pensioner participants                   13.99                   24.67
As of December 31, 2022    
Retired participants                   19.60                   23.42
Pensioner participants                   12.48                   25.97

 

 

22.5.4Actuarial evaluation

 

Based on the revision of the assumptions, as of December 31, 2023, the amounts of the Unified Plan and Plan III totaled a surplus of R$795,930 and R$83,613, respectively (R$595,847 and R$74,421, as of December 31, 2022). 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, 2023, reflecting any right to reduce contributions, refund of surplus or other amounts.

Schedule of actuarial evaluation          
Consolidated Unified
 Plan		 Plan
 III		 Assistance
 Plan		 12.31.2023 12.31.2022
Total liabilities or partially covered       6,416,085         3,820,011         1,657,687       11,893,783       10,721,838
Fair value of the plan assets      (7,212,015)        (3,903,624)           (173,870)      (11,289,509)      (10,323,018)
Plan coverage status         (795,930)             (83,613)         1,483,817            604,274            398,820
Unrecognized asset          795,930              83,613                        -            879,543            670,268
                       -                        -         1,483,817         1,483,817         1,069,088

 

The Company adjusted their assistance liabilities through the actuarial report issued on December 31, 2023, as presented in the Statements of Comprehensive Income.

 

22.5.5Changes in actuarial liabilities

 

Schedule of changes in actuarial liabilities      
Consolidated Unified Plan Plan III Assistance Plan
Present value of net actuarial obligations as of January 1, 2022            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
Cost of services                 16,650                   6,343                   6,878
Cost of interest               700,272               397,091               141,877
Benefits paid             (539,728)             (272,585)               (55,014)
Actuarial (gain) losses               210,135               251,260               338,499
Discontinued Operations balance adjustments                    (774)               (19,635)                 (9,324)
Present value of net actuarial obligations as of December 31, 2023            6,416,085            3,820,011            1,657,687

22.5.6Changes in actuarial assets

 

Schedule of changes in actuarial assets      
Consolidated Unified Plan Plan III Assistance Plan
Fair value of the Plan's assets as of January 1, 2022            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
Return estimated for assets               769,613               410,062                 18,629
Contributions and distributions                 23,868                   9,709                 54,782
Benefits paid             (539,728)             (272,584)               (54,782)
Actuarial gain (losses)               333,728               244,140               (10,442)
Discontinued Operations balance adjustments                    (843)               (19,661)                          -
Fair value of the Plan's assets as of December 31, 2023            7,212,015            3,903,624               173,870

 

22.5.7Estimated costs

 

The estimated net periodic plan costs (income) for 2024 for each plan are shown below:

     
Consolidated Unified Plan Plan III Assistance Plan
Cost of current service                       (17,705)                        10,105                          8,100
Estimated cost of interest                      590,697                      321,264                      140,975
Expected return on plan assets                     (591,774)                     (321,683)                       (15,030)
Costs (income or loss)                       (18,782)                          9,686                      134,045

 

 

In view of the current surplus of pension plans, the Company will not record the estimated revenues and costs presented in the table above for the Unified Plan and Plan III, in accordance with legislation that does not allow for reductions in contributions or reimbursements to the Company.

 

22.5.8Sensitivity analysis

 

The following table demonstrates the effect of changes to significant actuarial assumptions. The presentation of this sensitivity analysis was adjusted in relation to the year 2022 to reflect the variations that, in the Company's understanding, are more likely to occur.

Schedule of sensitivity analysis    
Consolidated Projected scenarios
  Increase by 0.5% Decrease in 0.5%
Sensitivity of long-term interest rate    
Impacts on the obligations of the pension              9,807,900             10,702,169
Impacts on the obligations of healthcare program              1,546,250               1,782,375
Sensitivity of growth rate of the medical costs    
Impacts on the obligations of healthcare program               1,784,147               1,544,008
Impact on cost of service for the following financial year of healthcare program                      8,460                      6,595
Sensitivity of the service cost    
Impacts on the obligations of the pension                    13,493                    14,269
Impacts on the obligations of healthcare program                      6,625                      8,429

 

22.5.9Benefits payable

 

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

Schedule of benefits payable        
Consolidated Unified Plan Plan III Assistance Plan Total 
2024                     543,355                     281,414                        54,858                     879,627
2025                     641,006                     284,173                        76,250                  1,001,429
2026                     568,053                     291,233                        73,728                     933,014
2027                     565,786                     298,255                        81,300                     945,341
2028                     573,042                     305,107                        89,233                     967,382
2029 a 2053                11,639,282                  8,327,621                   5,126,994                25,093,897

 

 

22.5.10Asset allocation and investment strategy

 

The asset allocation for the pension and healthcare plans at the end of 2023 and the allocation goal for 2024, by asset category, are shown below:

Schedule of asset allocation for pension and healthcare plans    
Consolidated Goal for 2024 (*) 2023
Fixed income 79.1% 77.2%
Variable income 4.9% 5.3%
Loans 1.3% 1.2%
Real estate 3.6% 5.6%
Investment structuring 8.8% 8.7%
Investments abroad 2.4% 2.0%
  100.0% 100.0%

 

 

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

 

Schedule of pension plan assets        
Consolidated Unified Plan Plan III
  target (%)(*) minimum (%) target (%) minimum (%)
Fixed income 89.5% 60.0% 70.0% 48.0%
Variable income 3.0% 2.0% 8.0% 3.0%
Loans 0.5% 0.0% 2.0% 0.0%
Real estate 2.5% 0.0% 1.0% 0.0%
Investment structuring 4.5% 0.0% 15.0% 0.0%
Investments abroad 0.0% 0.0% 4.0% 0.0%
(*) Target 2023.        
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, 2023 and 2022, in the amounts of R$70,203 and R$72,353, respectively.