NOTE 21 - PENSIONS AND OTHER POST-EMPLOYMENT BENEFIT OBLIGATIONS

21.1 Actuarial assumptions

Pension and other post-employment benefit obligations were updated based on the discount rates applicable at June 30, 2019.


	At June 30,		At December 31,
	2019		2018
Switzerland		0.30%		0.80%
U.S.
Hourly pension		3.60% - 3.70%		4.40% - 4.45%
Salaried pension		3.70%		4.45%
OPEB		3.65% - 3.85%		4.40% - 4.55%
Other benefits		3.40% - 3.65%		4.25% - 4.40%
France
Retirements		0.85%		1.65%
Other benefits		0.65%		1.35%
Germany		0.90%		1.70%

21.2 Amounts recognized in the Unaudited Interim Consolidated Statement of Financial Position


	At June 30, 2019								At December 31, 2018
	Pension			Other					Pension			Other
(in millions of Euros)	Benefits			Benefits		Total			Benefits			Benefits		Total
Present value of funded obligation		745			—		745			674			—		674
Fair value of plan assets		(419	)		—		(419	)		(380	)		—		(380	)

Deficit of funded plans		326			—		326			294			—		294
Present value of unfunded obligation		131			215		346			115			201		316

Net liability arising from defined benefit obligation		457			215		672			409			201		610

21.3 Amounts recognized in the Unaudited Interim Consolidated Income Statement


	Three months ended June 30, 2019									Three months ended June 30, 2018
	Pension			Other						Pension			Other
(in millions of Euros)	Benefits			Benefits			Total			Benefits			Benefits			Total
Service cost
Current service cost		(5	)		(1	)		(6	)		(3	)		(2	)		(5	)
Net interest		(2	)		(2	)		(4	)		(2	)		(2	)		(4	)
Immediate recognition of gains / (losses) arising over the period		—			(2	)		(2	)		—			—			—
Administrative expenses		—			—			—			(1	)		—			(1	)

Total		(7	)		(5	)		(12	)		(6	)		(4	)		(10	)


	Six months ended June 30, 2019									Six months ended June 30, 2018
	Pension			Other						Pension			Other
(in millions of Euros)	Benefits			Benefits			Total			Benefits			Benefits			Total
Service cost
Current service cost		(9	)		(3	)		(12	)		(8	)		(3	)		(11	)
Net interest		(4	)		(4	)		(8	)		(4	)		(4	)		(8	)
Immediate recognition of gains / (losses) arising over the period		—			(2	)		(2	)		—			—			—
Administrative expenses		(1	)		—			(1	)		(1	)		—			(1	)

Total		(14	)		(9	)		(23	)		(13	)		(7	)		(20	)

21.4 Movement in net defined benefit obligations


	At June 30, 2019
	Defined benefit obligations
	Pension			Other						Plan			Net defined
(in millions of Euros)	benefits			benefits			Total			Assets			benefit liability
At January 1, 2019		789			201			990			(380	)		610

Included in the Consolidated Income Statement
Current service cost		9			3			12			—			12
Interest cost / (income)		9			4			13			(5	)		8
Immediate recognition of gains / (losses) arising over the period		—			2			2			—			2
Administration expenses		—			—			—			1			1

Included in the Statement of Comprehensive Income / (Loss)
Remeasurement due to:
- actual return less interest on plan assets		—			—			—			(32	)		(32	)
- changes in financial assumptions		77			16			93			—			93
- changes in demographic assumptions		—			—			—			—			—
- experience losses		—			(1	)		(1	)		—			(1	)
Effects of changes in foreign exchange rates		6			1			7			(4	)		3

Included in the Consolidated Statement of Cash Flows
Benefits paid		(16	)		(11	)		(27	)		15			(12	)
Contributions by the Group		—			—			—			(12	)		(12	)
Contributions by the plan participants		2			—			2			(2	)		—

At June 30, 2019		876			215			1,091			(419	)		672

21.5 OPEB amendments

In the third quarter of 2018, the Group announced a plan to transfer certain participants in the Constellium Rolled Products Ravenswood Retiree Medical and Life Insurance Plan (“the Plan”) from a company sponsored program to a third-party health network that provides similar benefits at a lower cost.

The United Steelworkers Local Union 5668 is contesting the changes to the Plan and filed a lawsuit against Constellium Rolled Products Ravenswood, LLC in a federal district court in West Virginia (the “Court”) seeking to enjoin the Plan changes and to compel arbitration. The Court issued an order in December 2018 enjoining the Company from implementing the changes to the Plan pending resolution in arbitration.

The Group believes it has a strong legal position and that it is probable that it will ultimately prevail and be able to implement the Plan changes.

21.6 Net defined benefit obligations by country


	At June 30, 2019							At December 31, 2018
	Defined benefit		Plan			Net defined		Defined benefit		Plan			Net defined
(in millions of Euros)	obligations		assets			benefit liability		obligations		assets			benefit liability
France		169		(3	)		166		151		(3	)		148
Germany		148		(1	)		147		136		(1	)		135
Switzerland		280		(194	)		86		251		(178	)		73
United States		493		(221	)		272		451		(198	)		253
Other countries		1		—			1		1		—			1

Total		1,091		(419	)		672		990		(380	)		610