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26. POST-EMPLOYMENT OBLIGATIONS (Tables)
 12 Months Ended
Dec. 31, 2019
Disclosure of defined benefit plans [abstract]  
Schedule of consolidated actuarial information

Actuarial information

 

2019    Pension plans
and retirement
supplement plans		        Health plan        Dental plan       Life insurance        Total  
Present value of obligations    13,285          3,102           61          574           17,022    
Fair value of plan assets    (10,366 )     –         –         –         (10,366 )
Initial net liabilities    2,919       3,102       61       574       6,656  
Adjustment to asset ceiling    53       –         –         –         53  
Net liabilities in the statement of financial position    2,972       3,102       61       574       6,709  

 

2018    Pension plans
and retirement
supplement plans		          Health plan           Dental plan            Life insurance           Total     
Present value of obligations    11,073       2,344       48       427       13,892  
Fair value of plan assets    (9,062 )     –         –         –         (9,062 )
Initial net liabilities    2,011       2,344       48       427       4,830  
Adjustment to asset ceiling    159       –         –         –         159  
Net liabilities in the statement of financial position    2,170       2,344       48       427       4,989  
Schedule of changes in present value of defined benefit obligation

The changes in the present value of the defined benefit obligation are as follows:

 

    Pension plans
and retirement
supplement plans		       Health plan        Dental plan        Life insurance        Total   
Defined-benefit obligation at December 31, 2016    9,743       1,711       38       814       12,306  
Cost of current service    5          11           –              3           19   
Interest on actuarial obligation    980       178       3       85       1,246  
Actuarial losses (gains):                                       
Due to changes in demographic assumptions    191       –         –         –         191  
Due to changes in financial assumptions    414       66       2       55       537  
Due to adjustments based on experience    53       (44 )     (2 )     (60 )     (53 )
    658       22       –         (5 )     675  
Plan amendment – Past service    –         –         –         (619 )     (619 )
Benefits paid    (841 )     (113 )     (2 )     (8 )     (964 )
Defined-benefit obligation at December 31, 2017    10,545       1,809       39       270       12,663  
Cost of current service    3       10       –         2       15  
Interest on actuarial obligation    959       173       4       25       1,161  
Actuarial losses (gains):                                       
Due to changes in demographic assumptions                                       
Due to changes in financial assumptions    467       402       8       26       903  
Due to adjustments based on experience    (20 )     68       –         113       161  
    447       470       8       139       1,064  
Benefits paid    (881 )     (118 )     (3 )     (9 )     (1,011 )
Defined-benefit obligation at December 31, 2018    11,073       2,344       48       427       13,892  
Cost of current service    1       14       –         3       18  
Interest on actuarial obligation    963       208       4       38       1,213  
Actuarial losses (gains):                                       
Due to changes in demographic assumptions    6       –         –         –         6  
Due to changes in financial assumptions    2,058       576       11       130       2,775  
Due to adjustments based on experience    83       91       –         (14 )     160  
    2,147       667       11       116       2,941  
Benefits paid    (899 )     (131 )     (2 )     (10 )     (1,042 )
Defined-benefit obligation at December 31, 2019    13,285       3,102       61       574       17,022
Schedule of changes in the fair value of plan assets

Changes in the fair values of the plan assets are as follows:

 

    Pension plans and retirement
supplement plans 		   
Fair value of plan assets at December 31, 2016    8,128  
Return on investments    1,100  
Contributions from employer    159  
Benefits paid    (841 )
Fair value of plan assets at December 31, 2017    8,546  
Return on investments    1,220  
Contributions from employer    178  
Benefits paid    (881 )
Fair value of the plan assets at December 31, 2018    9,063  
Return on investments    2,003  
Contributions from employer    199  
Benefits paid    (899 )
Fair value of the plan assets at December 31, 2019    10,366  
Schedule of defined benefit plans expense recognised in income statement

The amounts recognized in 2019, 2018 and 2017 statement of income are as follows:

 

2019    Pension plans
and retirement
supplement plans		        Health plan        Dental plan        Life insurance        Total   
Current service cost    1          14          –            2          17   
Interest on the actuarial obligation    963       208       5       38       1,214  
Expected return on the assets of the Plan    (767 )     –         –         –         (767 )
Expense (recovery of expense) in 2019 according to actuarial calculation    197       222       5       40       464  

2018   Pension plans
and retirement
supplement plans		       Health plan       Dental plan       Life insurance       Total  
Current service cost    4          10          0          1         15     
Interest on the actuarial obligation    959       172       4       26       1,161  
Expected return on the assets of the Plan    (771 )     –         –         –         (771 )
Expense (recovery of expense) in 2018 according to actuarial calculation    192       182       4       27       405  

 

2017   Pension plans
and retirement
supplement plans		       Health plan       Dental plan       Life insurance       Total  
Current service cost    5           11          –           3           19      
Interest on the actuarial obligation    980       178       3       85       1,246  
Expected return on the assets of the Plan    (810 )     –         –         –         (810 )
Past service cost    –         –         –         (619 )     (619 )
Expense (recovery of expense) in 2017 according to actuarial calculation    175       189       3       (531 )     (164 )
Schedule of changes in net liabilities

Changes in net liabilities were as follows:

 

    Pension plans
and retirement
supplement plans		       Health plan       Dental plan       Life insurance       Total  
Net liabilities at December 31, 2016    1,679           1,711           38           814           4,242     
Expense recognized in Statement of income    175       189       3       88       455  
Contributions paid    (160 )     (113 )     (2 )     (7 )     (282 )
Plan amendment – Past service    –         –         –         (619 )     (619 )
Actuarial losses (gains)    374       22       (1 )     (5 )     390  
Net liabilities at December 31, 2017    2,068       1,809       38       271       4,186  
Expense recognized in Statement of income    193       183       4       25       405  
Contributions paid    (178 )     (118 )     (2 )     (9 )     (307 )
Actuarial losses    87       470       8       140       705  
Net liabilities at December 31, 2018    2,170       2,344       48       427       4,989  
Expense recognized in Statement of income    197       222       5       40       464  
Contributions paid    (200 )     (131 )     (2 )     (10 )     (343 )
Actuarial losses    805       667       10       117       1,599  
Net liabilities at December 31, 2019    2,972       3,102       61       574       6,709  
                                       
                             2019       2018  
Current liabilities                            288       253  
Non-current liabilities                            6,421       4,736
Schedule of independent actuaries estimate for the expense amount

The independent actuary’s estimation for the expense to be recognized for 2020 is as follows:

 

    Pension plans
and retirement
supplement plans		           Health plan           Dental plan          Life insurance           Total    
Current service cost    1       21       1       3       26  
Interest on the actuarial obligation    887       215       4       41       1,147  
Expected return on the assets of the Plan    (682 )     –         –         –         (682 )
Estimated total expense in 2020 as per actuarial report    206       236       5       44       491
Schedule of expectation for payment of benefits

The expectation for payment of benefits for 2020 is as follows:

 

    Pension plans
and retirement
supplement
plans – Forluz		          Health plan          Dental plan          Life insurance           Total   
Estimated payment of benefits    898       141       3       17       1,059
Schedule of average periods of the obligations under the benefit plans

The average maturity periods of the obligations of the benefit plans, in years, are as follows:

 

Pension plans and retirement supplement plans       
Plan A  Plan B  Health plan Dental plan Life insurance
9.54  11.55  12.82  13.17  16.93 
Schedule of principal categories percentage of plan assets

The main categories plan’s assets, as a percentage of total plan’s assets are as follows:

 

    2019           2018      
Shares    9.51 %     7.11 %
Fixed income securities    72.28 %     71.92 %
Real estate property    3.79 %     4.69 %
Others    14.42 %     16.28 %
Total    100.00 %     100.00 %

 

The following assets of the pension plan, measured at fair value, are related to the Company:

 

    2019         2018   
Non-convertible debentures issued by the Company    398       380  
Shares issued by the Company    24       35  
Real estate properties of the Foundation, occupied by the Company    503       662  
    925       1,077
Schedule of actuarial assumptions

This table provides the main actuarial assumptions:

 

    2019
Pension plans and retirement supplement plans   Health plan and Dental plan   Life insurance
Annual discount rate for present value of the actuarial obligation   6.87%   7.09%   7.19%
Annual expected return on plan assets   6.87%   Not applicable   Not applicable
Long-term annual inflation rate   3.61%   3.61%   3.61%
Estimated future annual salary increases   3.61%   Not applicable   4.85%
General mortality table   AT-2000 M S10% D10%   AT-2000 M S10% D20%   AT-2000 M S10% D20%
Disability table   Not applicable   Álvaro Vindas D30%   Álvaro Vindas D30%
Disabled mortality table   AT-49 M   MI-85 F   MI-85 F
Real growth of contributions above inflation   –     1%   –  

 

    2018
Pension plans and retirement supplement plans   Health plan and Dental plan   Life insurance
Annual discount rate for present value of the actuarial obligation   9.02%   9.60%   9.57%
Annual expected return on plan assets   9.02%   Not applicable   Not applicable
Long-term annual inflation rate   4.01%   4.00%   4.00%
Estimated future annual salary increases   4.01%   Not applicable   6.08%
General mortality table   AT-2000 M S10% D10%   AT-2000 M S10% D20%   AT-2000 M S10% D20%
Disability table   Not applicable   Álvaro Vindas D30%   Álvaro Vindas D30%
Disabled mortality table   AT 49 M   Winklevoss D30%   Winklevoss D30%
Real growth of contributions above inflation (1)   –     1%   –  

 

(1)      Starting in 2018, Company adopted the assumption of real growth of the contributions above inflation at the rate of 1% p.a.

 

    2017
Pension plans and retirement supplement plans   Health and Dental plans   Life insurance
Annual discount rate for present value of the actuarial obligation   9.48%   9.60%   9.57%
Annual expected return on plan assets   9.48%   9.60%   9.57%
Long-term annual inflation rate   4.00%   4.00%   4.00%
Estimated future annual salary increases   4.00%   Not applicable   6.08%
General mortality table   AT-2000 M S10% D10%   AT-2000 M S10% D20%   AT-2000 M S10% D20%
Disability table   Not applicable   Álvaro Vindas D30%   Álvaro Vindas D30%
Disabled mortality table   AT 49 M   Winklevoss D30%   Winklevoss D30%
Schedule of sensitivity analysis of the effects of changes in the principal actuarial assumptions used to determine the defined-benefit obligation

Below is a sensitivity analysis of the effects of changes in the main actuarial assumptions used to determine the defined-benefit obligation at December 31, 2019:

 

 Effects on the defined-benefit obligation   Pension plans and
retirement
supplement plans		         Health plan           Dental plan         Life insurance          Total   
Reduction of one year in the mortality table    335       84       1       (15 )     405  
Increase of one year in the mortality table    (336 )     (61 )     (1 )     16       (382 )
Reduction of 1% in the discount rate    1,583       496       10       122       2,211