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19. EMPLOYEES BENEFITS (Tables)
 12 Months Ended
Dec. 31, 2020
Disclosure of information about defined benefit plans [abstract]  
Schedule of assets and actuarial liabilities

The assets and actuarial liabilities, as well as the movement of the related rights and obligations are presented below:

               
  FAF   Plan II
  12.31.20   12.31.19   12.31.20   12.31.19
Composition of actuarial assets and liabilities              
Present value of actuarial liabilities  3,377,234    3,412,120    23,256    19,550
Fair value of assets  (3,553,215)    (3,771,792)   (24,170)   (29,580)
(Surplus) Deficit (175,981)   (359,672)    (914)   (10,030)
Irrecoverable surplus - (asset ceiling) 175,981   359,672   167    6,777
Net actuarial (assets) liabilities -   -    (747)   (3,253)
               
Rollforward of irrecoverable surplus              
Beginning balance of irrecoverable surplus 359,672   695,367    6,777    8,502
Interest on irrecoverable surplus  26,184    64,113   476   782
Changes in irrecoverable surplus during the year (209,875)   (399,808)   (7,086)   (2,507)
Ending balance of irrecoverable surplus 175,981   359,672   167    6,777
               
Rollforward of present value of actuarial liabilities              
Beginning balance of the present value of liabilities  3,412,120    2,498,564    19,550    17,447
Interest on actuarial obligations 242,746   223,848    1,324    1,544
Current service cost  42,106    28,172   -   -
Past service cost - plan changes (4,223)   -   -   -
Benefit paid (154,096)   (142,390)   (1,612)   (1,353)
Actuarial losses - experience 148,984    85,002    5,273   (1,176)
Actuarial losses - hypothesis (310,403)   718,924   (1,279)    3,088
Ending balance of actuarial liabilities  3,377,234    3,412,120    23,256    19,550
               
Rollforward of the fair value of the assets              
Beginning balance of the fair value of plan assets  (3,771,792)    (3,193,931)   (29,580)   (27,819)
Interest income on assets plan (268,930)   (287,961)   (2,028)   (2,497)
Benefit paid 154,096   142,390    1,612    1,353
Return on assets higher (lower) than projection 333,411   (432,290)    5,826    (617)
Ending Balance of the fair value of the assets  (3,553,215)    (3,771,792)   (24,170)   (29,580)
               
Rollforward of comprehensive income              
Beginning balance  28,172    27,972    1,213    (567)
Reversion to accumulated losses (28,172)   (27,972)   (1,213)   567
Actuarial gains (losses) 161,419   (803,925)   (3,994)   (1,911)
Return on assets higher (lower) than projection (333,411)   432,289   (5,826)   617
Changes on irrecoverable surplus 209,875   399,808    7,086    2,507
Ending balance of comprehensive income  37,883    28,172   (2,734)    1,213
               
Costs recognized in statement of income              
Current service costs (42,106)   (28,172)   -   -
Interest on actuarial obligations (242,746)   (223,848)   (1,324)   (1,544)
Projected return on assets 268,930   287,961    2,028    2,497
Interest on irrecoverable surplus (26,184)   (64,113)    (476)    (782)
Past service cost - plan changes  4,223   -   -   -
Costs recognized in statement of income (37,883)   (28,172)   228   171
               
Estimated costs for the next year              
Costs of defined benefit (26,741)   (42,106)   54   228
Estimated costs for the next year (26,741)   (42,106)   54   228
Schedule of actuarial assumptions and demographic data

The main actuarial assumptions and demographic data used in the actuarial calculations are presented below:

               
  FAF   Plan II
  12.31.20   12.31.19   12.31.20   12.31.19
Actuarial assumptions              
Economic hypothesis              
Discount rate 7.49%   7.28%   7.25%   7.02%
Inflation rate 3.25%   3.80%   3.25%   3.80%
Wage growth rate 3.49%   4.47%   N/A   N/A
Demographic hypothesis              
Schedule of mortality AT-2000 smoothed by 10%   AT-2000   AT-2000 smoothed by 10%   AT-2000
Schedule of disabled mortality CSO-58   RRB-1983   CSO-58   RRB-1983
Demographic data              
 Number of active participants 6,495   6,796   -    - 
 Number of beneficiary participants assisted  7,206   6,834   51   51
Schedule of composition of the investment portfolio

The composition of the investment portfolios is presented below:

 

    FAF   Plan II
    12.31.20   12.31.19   12.31.20   12.31.19
Composition of the fund's portfolio                                
Fixed income    2,330,909   65.6%    2,542,188   67.4%   22,382   92.6%   28,396   96.0%
Variable income   579,174   16.3%   524,279   13.9%    870   3.6%    444   1.5%
Real estate   358,875   10.1%   369,636   9.8%    -     -     -    - 
Structured investments   262,938   7.4%   313,059   8.3%    918   3.8%    740   2.5%
Transactions with participants   21,319   0.6%    22,630   0.6%    -     -     -    - 
     3,553,215   100.0%    3,771,792   100.0%   24,170   100.0%   29,580   100.0%
% of nominal return on assets   7.49%       9.36%       7.25%       7.50%    
Schedule of expected benefit payments and average terms of plan obligations

The following amounts represent the expected benefit payments for future periods and the average duration of the plan’s obligations:

 

  FAF   Plan II
2021 183,771    1,617
2022 194,992    1,658
2023 204,958    1,700
2024 211,397    1,740
2025 218,510    1,778
2026 to 2030  1,219,130    9,380
Weighted average duration - in years  13.50    9.78
Schedule of quantitative sensitivity analysis regarding relevant assumptions of defined benefit plan

The quantitative sensitivity analysis regarding the relevant assumptions of defined benefit plan – FAF on December 31, 2020 is presented below:

 

    Assumptions utilized   Variation of (+1%)   Variation of (-1%)
Relevant assumptions     Average rate   Actuarial liabilities (1)   Average rate   Actuarial liabilities 
Benefit plan - FAF                    
Discount rate   7.49%   8.49%   2,992,764   6.49%   3,852,966
Wage growth rate   3.49%   4.49%   3,451,715   2.49%   3,314,607
Schedule of description and characteristics of benefits and associated risks
19.2. Employee benefits: description and characteristics of benefits and associated risks
     
  Liabilities
  12.31.20   12.31.19
Medical assistance 185,802   187,274
F.G.T.S. Penalty (1) 282,229   247,485
Award for length of service 108,908   103,284
Other 199,616   151,431
  776,555   689,474
       
Current 125,230    95,919
Non-current 651,325   593,555

 

  (1) FGTS – Government Severance Indemnity Fund for Employees
Schedule of liabilities related to other benefits

The rollforward of actuarial liabilities related to other benefits, which was prepared based on actuarial report reviewed by the Management, are as follows:

     
    Medical plan   F.G.T.S. penalty   Award for length of service   Other (1)
    12.31.20   12.31.19   12.31.20   12.31.19   12.31.20   12.31.19   12.31.20   12.31.19
Composition of actuarial liabilities                                
Present value of actuarial liabilities   185,802   187,274   282,229   247,485   108,908   103,284   199,616   151,431
Net actuarial liabilities   185,802   187,274   282,229   247,485   108,908   103,284   199,616   151,431
                                 
Rollforward of present value of actuarial liabilities                                
Beginning balance of present value of actuarial liabilities   187,274   149,046   247,485   167,588   103,284   55,134   151,431   96,384
Interest on actuarial liabilities   13,586   13,503   13,993   11,840   6,275   4,366   8,883   4,260
Current service costs    -    -   12,718   6,471   5,741   2,574   23,174   22,237
Past service costs - plan change²    -    -    -    (61,871)    -    -    -    -
Benefits paid directly by the Company   (7,122)   (4,262)   (4,225)    (10,791)    (13,887)    (14,056)    (18,902)   (9,268)
Actuarial (gains) losses - experience   1,167   (7,235)   14,725   7,897   10,759   11,142   10,548   10,462
Actuarial (gains) losses - demographic hypothesis   13,462    -   10,195   84,158   5,717   34,950   1,535   14,066
Actuarial losses - economic hypothesis    (22,565)   36,222    (12,662)   42,193   (8,981)   9,174   4,778   13,290
Actuarial (gains) losses - exchange variation    -    -    -    -    -    -   18,169    -
Ending balance of liabilities   185,802   187,274   282,229   247,485   108,908   103,284   199,616   151,431
                                 
Rollforward of the fair value of the assets                                
Benefits paid directly by the Company   7,122   4,262   4,225   10,791   13,887   14,055   18,902   9,268
Contributions of the sponsor   (7,122)   (4,262)   (4,225)    (10,791)    (13,887)    (14,055)    (18,902)   (9,268)
Ending Balance of the fair value of the assets    -    -    -    -    -    -    -    -
                                 
Rollforward of comprehensive income                                
Beginning balance    (76,232)    (47,245)    (228,345)    (94,097)    -    -    (58,617)    (20,799)
Actuarial gains (losses)   7,936    (28,987)    (12,258)    (134,248)    -    -    (16,861)    (37,818)
Ending balance of comprehensive income    (68,296)    (76,232)    (240,603)    (228,345)    -    -    (75,478)    (58,617)
                                 
Costs recognized in statement of income                                
Interest on actuarial liabilities    (13,586)    (13,503)    (13,993)    (11,840)   (6,275)   (4,366)   (8,883)   (4,260)
Current service costs    -    -    (12,718)   (6,471)   (5,741)   (2,574)    (23,174)    (22,236)
Past service costs - plan change (2)    -    -    -   61,871    -    -    -    -
Immediate recognition of reduction    -    -    -    -   (7,495)    (55,266)    -    -
Cost recognized in statement of income    (13,586)    (13,503)    (26,711)   43,560    (19,511)    (62,206)    (32,057)    (26,496)
                                 
Estimated costs for the next year                                
Current service costs    -    -    (14,833)    (12,718)   (6,319)   (5,741)    (22,021)    (15,911)
Interest on actuarial liabilities    (13,975)    (13,586)    (15,711)    (13,993)   (6,656)   (6,275)    (11,217)   (8,201)
Estimated costs for the next year    (13,975)    (13,586)    (30,544)    (26,711)    (12,975)    (12,016)    (33,238)    (24,112)
                                 

  

(1) Considers the retirement compensation and life insurance benefits.
(2) Refers to a change in the legislation related to F.G.T.S. penalty. The Law Nº 13,932, of December 11, 2019, extinguished the social contribution due by the employer of 10%.
Schedule of actuarial assumptions and demographic data

The main actuarial assumptions and demographic data used in the actuarial calculations are summarized below:

                         
    Medical plan   F.G.T.S. penalty   Other (1)
Actuarial assumptions   12.31.20   12.31.19   12.31.20   12.31.19   12.31.20   12.31.19
                         
Economic hypothesis                        
Discount rate   7.68%   7.39%   6.51%   6.07%   6.51%   6.07%
Inflation rate   3.25%   3.80%   3.25%   3.80%   3.25%   3.80%
Medical inflation   6.35%   6.91%   N/A   N/A   N/A   N/A
Wage growth rate   N/A   N/A   3.25%   4.02%   3.25%   4.02%
F.G.T.S. balance growth   N/A   N/A   3.80%   3.90%   N/A   N/A
Demographic hypothesis                        
Schedule of mortality    AT-2000 smoothed by 10%     AT-2000     AT-2000 smoothed by 10%     AT-2000         
Schedule of disabled    N/A     N/A     RRB-44     RRB-44         
Schedule of turnover - BRF's historical     2,020    2,019    2,020    2,019        
Demoraphic data                        
 Number of active participants    1,245    1,115   93,245   86,849        
 Number of assisted beneficiary participants   559   572   -    -         

 

  (1) Includes retirement compensation and life insurance benefits.
Schedule of expected benefit payments for future

The following amounts represent the expected benefit payments for future years (10 years), from the obligation of benefits granted and the average duration of the plan obligations:

 

Payments   Medical plan   F.G.T.S. penalty   Award for length of service   Other   Total
                     
2021   7,675   81,789   13,329   22,335   125,128
2022   8,282   14,552   8,855   13,480   45,169
2023   8,940   18,353   10,970   15,556   53,819
2024   9,665   19,815   13,952   16,936   60,368
2025   10,439   21,916   12,553   18,603   63,511
2026 to 2030   64,829   132,454   66,195   125,521   388,999
Weighted average duration - in years   14.26   6.73   6.70   8.47   8.35
Schedule of sensitivity analysis of post-employment plans

The Company prepared sensitivity analysis regarding the relevant assumptions of the plans as of December 31, 2020, as presented below:

 

    Assumptions utilized   (+) Variation   (-) Variation
Relevant assumptions     Average (%)   Actuarial liabilities    Average (%)   Actuarial liabilities 
Medical plan                    
Discount rate   7.68%   8.68%    164,011   6.68%    212,435
Medical inflation   6.35%   7.35%    211,694   5.35%    164,224
F.G.T.S. penalty                    
Discount rate   6.51%   7.51%    265,825   5.51%    301,077
Wage growth rate   3.25%   4.25%    286,139   2.25%    278,672
Turnover   Historical   +3%    233,001   -3%    356,695