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EMPLOYEE BENEFITS (Tables)
 12 Months Ended
Dec. 31, 2021
Schedule of actuarial employee benefit assets and liabilities

The actuarial calculations are updated, at the end of each year, by external actuaries and presented in the financial statements in accordance with IAS 19 - Employee Benefits.

 

              Consolidated
  12/31/2021   12/31/2020   12/31/2021   12/31/2020
  Actuarial asset   Actuarial liabilities
Benefits of pension plans            (59,111)           (13,819)                                  79,546
Post-employment healthcare benefits                                                                  584,288              678,880
               (59,111)               (13,819)              584,288              758,426
Schedule of reconciliation of employee benefits' assets and liabilities

The reconciliation of assets and liabilities of employee benefits is presented below:

 

  Consolidated
  12/31/2021   12/31/2020   12/31/2019
Present value of defined benefit obligation       3,151,609       3,645,822        3,581,460
Fair value of plan assets      (3,584,244)      (3,766,194)       (3,894,488)
Deficit(Surplus)         (432,635)         (120,372)          (313,028)
Restriction to actuarial assets due to recovery limitation          373,524          186,099           319,102
Liabilities (Assets), net              (59,111)                65,727                  6,074
Liabilities                                 79,546            19,788
Assets           (59,111)           (13,819)           (13,714)
Net (assets) recognized in the balance sheet              (59,111)                65,727                  6,074
Schedule of defined benefit obligation

The change in the present value of the defined benefit obligation is shown below:

 

  Consolidated
  12/31/2021   12/31/2020   12/31/2019
Present value of obligations at the beginning of the year           3,645,822           3,581,460            3,087,433
Cost of service             1,253                968              1,093
Interest cost          231,009          236,551           283,487
Participant contributions made in the period             1,398              1,998              2,126
Benefits paid         (283,393)         (278,960)          (269,995)
Actuarial loss/(gain)         (444,480)          103,805           477,316
Present value of obligations at the end of the year           3,151,609           3,645,822            3,581,460
Schedule of changes in fair value of the plan assets


The change in the fair value of the plan’s assets is shown below:

 

 

  Consolidated
  12/31/2021   12/31/2020   12/31/2019
Fair value of plan assets at the beginning of the year          (3,766,193)          (3,894,488)           (3,403,906)
Interest income         (238,534)         (257,946)          (314,102)
Benefits Paid          283,393          278,960           269,995
Participant contributions made in the period            (1,398)             (1,998)             (2,127)
Return on plan assets (less interest income)          138,488          109,279          (444,348)
Fair value of plan assets at the end of the year          (3,584,244)          (3,766,193)           (3,894,488)
Schedule of employee benefits recognized in the income statement

The composition of the amounts recognized in the income statement is shown below:

 

          Consolidated
  12/31/2021   12/31/2020   12/31/2019
Cost of current service             1,253                968              1,093
Interest cost          231,009          236,551           283,487
Expected return on plan assets         (238,534)         (257,946)          (314,102)
Interest on the asset ceiling effect            11,985            21,737            21,502
Total costs / (income), net             5,713              1,310             (8,020)
Schedule of actuarial gains and losses

The movement of actuarial gains and losses is shown below:

 

          Consolidated
  12/31/2021   12/31/2020   12/31/2019
Actuarial losses and (gains)             (444,480)              103,805              477,316
Return on plan assets (less interest income)          138,488          109,279          (444,348)
Change in the asset’s limit (excluding interest income)          175,440         (154,741)            73,039
Total cost of actuarial losses and (gains)             (130,552)                58,343              106,007
Schedule of breakdown of actuarial gains or losses

The breakdown of actuarial gains and losses is shown below:

 

  Consolidated
  12/31/2021   12/31/2020   12/31/2019
Loss due to change in demographic assumptions                                 67,930                       
Loss due to change in financial assumptions          (647,564)           (30,454)           472,715
Loss due to experience adjustments          203,084            66,329              4,601
Return on plan assets (less interest income)          138,488          109,279          (444,348)
Change in the asset’s limit (excluding interest income)          175,440         (154,741)            73,039
Actuarial losses and (gains)             (130,552)                58,343              106,007
Schedule of actuarial assumptions used

The main actuarial assumptions used were as follows:

 

 

  12/31/2021   12/31/2020
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: 10.71%
Plan 35%: 10.53%
Supplementation : 10.54%		   Millennium Plan: 6.95%
Plan 35%: 6.24%
Supplementation: 6.44%
Inflation rate 5.03%   3.32%
Nominal salary increase rate 6.08%   4.35%
Nominal benefit increase rate 5.03%   3.32%
Rate of return on investments Millennium Plan: 10.71%
Plan 35%: 10.53%
Supplementation : 10.54%		   Millennium Plan: 6.95%
Plan 35%: 6.24%
Supplementation: 6.44%
General mortality table Millennium Plan: AT-2012 segregated by gender
Plan 35%: AT-2000 Male aggravated by 15%
Supplementation: AT-2000 aggravated by 10% segregated by gender		   Millennium Plan: AT-2012 segregated by gender
Plan 35%: AT-2000 Male aggravated by 15%
Supplementation: AT-2000 aggravated by 10% segregated by gender
Disability table 35% Plan Light Medium.
Millenium Plan: Prudential (-10%) Supplementation: not applicable		   35% Plan Light Medium.
Millenium Plan: Prudential (-10%) Supplementation: not applicable
Disability mortality table Millenium Plan: AT-71
35% Plan : MI-2006 -10% M&F Supplementation: Winklevoss -10%		   Millenium Plan: AT-71
35% Plan : MI-2006 -10% M&F ;Supplementation: Winklevoss -10%
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 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 average life expectancy

The assumptions regarding the mortality table are based on published statistics and mortality tables. These tables translate into an average life expectancy in years for employees aged 65 and 40:

 

  Plan covering 35% of the average salary   Average salary supplementation plan   Mixed supplementary benefit plan (Milênio Plan) 
Longevity at age of 65 for current participants 12/31/2021   12/31/2020   12/31/2021 12/31/2020   12/31/2021 12/31/2020
Male          18.38            18.38            18.75          18.75            21.47          21.47
Female          18.38            18.38            21.41          21.41            23.34          23.34
                   
Longevity at age of 40 for current participants                  
Male          40.15            40.15            40.60          40.60            44.07          44.07
Female          40.15            40.15            44.41          44.41            46.28          46.68
Schedule of allocation of plan assets

Allocation of plan assets:

 

      12/31/2021       12/31/2020       12/31/2019
Variable income            195,032   5.44%                54,285   1.44%           25,236   0.65%
Fixed income         3,127,736   87.26%            3,438,735   91.31%       3,607,398   92.63%
Real estate            190,474   5.31%              182,145   4.84%         183,098   4.70%
Others             71,002   1.98%                91,028   2.42%           78,756   2.02%
Total         3,584,244   100.00%            3,766,193   100.00%       3,894,488   100.00%
The quantitative sensitivity analysis in relation to significant assumptions, for pension plans on December 31, 2021, is shown below:

The quantitative sensitivity analysis in relation to significant assumptions, for pension plans on December 31, 2021, is shown below:

 

                  12/31/2021
    Plan covering 35% of the average salary   Average salary supplementation plan   Mixed supplementary benefit plan (Milênio Plan) 
Assumption: Discount rate                  
Sensitivity level   0.5% -0.5%   0.5% -0.5%   0.5% -0.5%
Effect on current service cost and on interest on actuarial obligations    (1,005)   1,084    (5,507)   5,954    (4,758)   5,309
Effect on present value of obligations     (16,114) 17,381     (85,515) 92,456     (68,287) 76,188
                   
Assumption: Salary growth                  
Sensitivity level   0.5% -0.5%   0.5% -0.5%   0.5% -0.5%
Effect on current service cost and on interest on actuarial obligations                     191  (181)
Effect on present value of obligations                   1,079  (1,030)
                   
Assumption: Mortality table                  
Sensitivity level   0.5% -0.5%   0.5% -0.5%   0.5% -0.5%
Effect on current service cost and on interest on actuarial obligations     120  (120)     623  (623)     430  (430)
Effect on present value of obligations     1,928  (1,928)     9,669  (9,669)     5,975  (5,975)
                   
Assumption: Benefit adjustment                  
Sensitivity level   +1 year - 1 year   +1 year - 1 year   +1 year - 1 year
Effect on current service cost and on interest on actuarial obligations     850  (839)     4,382  (4,362)     1,562  (1,541)
Effect on present value of obligations   13,626   (13,455)   68,039   (67,726)   22,603   (22,306)
Schedule of forecast benefit payments of the defined benefit plans

Following are the expected benefits for future years for defined benefit plans:

 

Forecast payments      
Year 1                303,855
Year 2                289,600
Year 3                282,546
Year 4                275,174
Year 5                267,521
Next 5 years             1,220,994
Total forecast payments             2,639,690
Schedule of post-employment health care plan amounts

The amounts recognized in the balance sheet were determined as follows:

 

 

  12/31/2021   12/31/2020   12/31/2019
Present value of obligations            584,288              678,880              892,396
Liabilities            584,288              678,880              892,396
Schedule of reconciliation of the healthcare liabilities

The reconciliation of health benefit liabilities is presented below:

 

  12/31/2021   12/31/2020   12/31/2019
Actuarial liability at the beginning of the year            678,880              892,396              897,137
Expenses recognized in income for the year             42,355               57,731            69,907
Sponsor’s contributions transferred in prior year            (73,324)              (81,340)           (82,081)
Recognition of actuarial loss/(gain)             (63,623)             (189,907)              7,433
Actuarial liability at the end of the year         584,288          678,880          892,396
Schedule of actuarial gains and losses recognized in shareholders' equity

The actuarial gains and losses recognized in equity are shown below:

 

  12/31/2021   12/31/2020   12/31/2019
Gain/(loss) recognized in shareholders' equity             (63,623)             (189,907)                 7,433
Schedule of weighted average life expectancy

Below is the weighted average life expectancy based on the mortality table used to determine the actuarial obligations:

 

  12/31/2021   12/31/2020
Longevity at age of 65 for current participants      
Male               20.24                 20.24
Female               20.24                 20.24
       
Longevity at age of 40 for current participants      
Male               42.74                 42.74
Female               42.74                 42.74
Schedule of actuarial assumptions used for calculating postemployment healthcare benefits

The actuarial assumptions used to calculate post-employment health benefits were:

 

  12/31/2021   12/31/2020
Biometric and Demographic      
General mortality table AT 2000 segregated by gender 20%   AT 2000 segregated by gender 20%
       
Financial      
Actuarial nominal discount rate 10.55%   6.53%
Inflation 5.03%   3.32%
Real increase in medical costs based on age (Aging Factor)  0.5% - 3.00% real p.a.   0.5% - 3.00% real p.a.
Nominal increase medical costs growth rate  4.10%   4.10%
Average medical cost (Claim cost)                                              1,011.42                                                   913.00
The quantitative sensitivity analysis for significant assumptions for the post-employment health benefit as of December 31, 2021, is shown below:

The quantitative sensitivity analysis for significant assumptions for the post-employment health benefit as of December 31, 2021, is shown below:

 

 

      12/31/2021
    Healthcare Plan
    Assumption: Discount rate
Sensitivity level   0.5% -0.5%
Effect on current service cost and on interest on actuarial obligations                          559                       (608)
Effect on present value of obligations                    (20,842)                   22,545
       
    Assumption: Medical Inflation
Sensitivity level   1.0% -1.0%
Effect on current service cost and on interest on actuarial obligations                       5,291                    (4,599)
Effect on present value of obligations                     50,127                  (43,572)
       
    Assumption: Benefit adjustment
Sensitivity level   +1 year - 1 year
Effect on current service cost and on interest on actuarial obligations                       3,880                    (3,669)
Effect on present value of obligations                     36,763                  (34,763)
Schedule of forecast benefit payments of the postemployment healthcare plans

Following are the expected benefits for future exercises for post-employment health benefit plans:

 

Forecast benefit payments      
Year 1                  65,814
Year 2                  63,130
Year 3                  60,377
Year 4                  57,534
Year 5                  54,598
Next 5 years                227,586
Total forecast payments                529,039