Schedule of reconciliation of employee benefits' assets and liabilities

The reconciliation of employee benefits’ assets and liabilities is as follows:

	12/31/2019	12/31/2018
Present value of defined benefit obligation	3,581,460	3,087,433
Fair value of plan assets	(3,894,488)	(3,403,906)
Deficit(Surplus)	(313,028)	(316,473)
Restriction to actuarial assets due to recovery limitation	319,102	224,561
Liabilities (Assets), net	6,074	(91,912)
Liabilities	19,788	7,982
Assets	(13,714)	(99,894)
Net (assets) recognized in the balance sheet	6,074	(91,912)

Schedule of changes in fair value of the plan assets

The movement in the fair value of the plan assets during 2019 is as follows:

	12/31/2019	12/31/2018
Fair value of plan assets at the beginning of the year	(3,403,906)	(3,305,356)
Interest income	(314,102)	(327,830)
Benefits Paid	269,995	280,493
Participant contributions made in the period	(2,127)
Return on plan assets (less interest income)	(444,348)	(51,213)
Fair value of plan assets at the end of the year	(3,894,488)	(3,403,906)

Schedule of actuarial gains and losses

The movement in the actuarial gains and losses in 2019, 2018 and 2017 are as follows:

	12/31/2019	12/31/2018	12/31/2017
Actuarial losses and (gains)	477,316	(15,224)	166,540
Return on plan assets (less interest income)	(444,348)	(51,213)	(36,627)
Change in the asset’s limit (excluding interest income)	73,039	50,058	(97,882)
Total cost of actuarial losses and (gains)	106,007	(16,379)	32,031
Actuarial losses and (gains) recognized in other comprehensive income			32,037
Unrecognized actuarial (gains)			(6)
Total cost of actuarial losses and (gains)	106,007	(16,379)	32,031

Schedule of actuarial assumptions used

The main actuarial assumptions used were as follows:

	12/31/2019	12/31/2018
Actuarial financing method	Projected unit credit	Projected unit credit
Functional currency	Real (R$)	Real (R$)
Recognition of plan assets	Fair value	Fair value
Nominal discount rate	Millennium Plan: 6.98% Plan 35%: 6.75% Supplementation: 6.81%	Millennium Plan: 9.69% Plan 35%: 9.60% Supplementation: 9.59%
Nominal discount rate
Inflation rate	3.61%	4.75%
Nominal salary increase rate	4.65%	5.80%
Nominal benefit increase rate	3.61%	4.75%
Rate of return on investments	Millennium Plan: 6.98% Plan 35%: 6.75% Supplementation: 6.81%	Millennium Plan: 9.69% Plan 35%: 9.60% Supplementation: 9.59%
Rate of return on investments
General mortality table	Millennium Plan: AT-2000 smoothed down by 10% segregated by gender. Plans 35%: AT-2000 Male aggravated by 15%. Supplementation: AT-2000 aggravated by 10% segregated by gender.	Millennium Plan: AT-2000 smoothed down by 10% segregated by gender. Plans 35%: AT-2000 Male aggravated by 15%. Supplementation: AT-2000 aggravated by 10% segregated by gender.
Disability table	35% Plan and Supplementation: Light Medium. Millenium Plan: Prudential (Ferr. Retirement)	35% Plan and Supplementation: Light Medium. Millenium Plan: Prudential (Ferr. Retirement)
Disability mortality table	Winklevoss - 1%	Winklevoss - 1%
Turnover table	Millenium plan 5% per annum, zero for plans 35% and Supplementation.	Millenium plan 5% per annum, zero for plans 35% and Supplementation.
Retirement age	100% on the first date he/she becomes eligible for programmed retirement benefit under the plan	100% on the first date he/she becomes eligible for programmed retirement benefit under the plan
Household composition of active participants	95% will be married at the time of retirement, with the wife being 4 years younger than the husband	95% will be married at the time of retirement, with the wife being 4 years younger than the husband

Schedule of allocation of plan assets

Allocation of plan assets:

		12/31/2019		12/31/2018
Variable income	25,236	0.65%	141,705	4,16%
Fixed income	3,607,398	92.63%	3,050,099	89,61%
Real estate	183,098	4.70%	52,091	1,53%
Others	78,756	2.02%	160,011	4,70%
Total	3,894,488	100.00%	3,403,906	100,00%

Schedule of forecast benefit payments of the defined benefit plans

The forecast benefit payments of the defined benefit plans for future years are as follows:

Payments	2019
Year 1	267,764
Year 2	261,355
Year 3	255,518
Year 4	249,398
Year 5	243,000
Next 5 years	1,109,647
Total forecast payments	2,386,682

Schedule of reconciliation of the healthcare liabilities

The reconciliation of the healthcare liabilities is as follows:

	12/31/2019	12/31/2018
Actuarial liability at the beginning of the year	897,137	866,784
Expenses recognized in income for the year	69,907	85,748
Sponsor’s contributions transferred in prior year	(82,081)	(71,632)
Recognition of actuarial loss/(gain)	7,433	16,237
Actuarial liability at the end of the year	892,396	897,137

Schedule of weighted average life expectancy

The weighted average life expectancy based on the mortality table used to determined actuarial obligations is as follows:

	12/31/2019	12/31/2018
Longevity at age of 65 for current participants
Male	20.24	19.55
Female	20.24	22.17

Longevity for current participants who are 40
Male	42.74	41.59
Female	42.74	45.30

Schedule of quantitative sensitivity analysis regarding the significant assumptions for the postemployment healthcare plans

The quantitative sensitivity analysis regarding the significant assumptions for the post-employment healthcare plans as of December 31, 2019 is as follows:

		12/31/2019
	Healthcare Plan
	Assumption: Discount rate
Sensitivity level	0.5%	-0.5%
Effect on current service cost and on interest on actuarial obligations	1,824	(2,006)
Effect on present value of obligations	(35,490)	38,444

	Assumption: Medical Inflation
Sensitivity level	1.0%	-1.0%
Effect on current service cost and on interest on actuarial obligations	5,646	(4,900)
Effect on present value of obligations	83,270	(72,264)

	Assumption: Mortality table
Sensitivity level	+1 year	-1 year
Effect on current service cost and on interest on actuarial obligations	4,093	(3,851)
Effect on present value of obligations	60,367	(56,802)