8) Employee benefits obligations
TOTAL S.A. participates in death-disability, pension, early retirement and severance pay plans. Expenses for defined contribution and multi-employer plans correspond to the contributions paid.
Provisions as of December 31, are as follows:
For defined benefit plans, commitments are determined using a prospective methodology called “projected unit credit method”. The commitment actuarial value depends on various parameters such as length of service, life expectancy, employee turnover rate and salary revaluation and discounting assumptions.
The actuarial assumptions used as of December 31, are the following:
TOTAL S.A. records a provision in its accounts for the net actuarial liability of the plan assets and the deferred gains and losses to be amortized when this sum represents a pension liability.
Actuarial gains and losses resulting from changes in actuarial assumptions are amortized using the straight-line method over the estimated remaining length of service of employees involved.
The reconciliation between the total commitment for pension plans not covered through insurance companies and the provision booked is as follows:
The Company’s commitment for pension plans covered through insurance companies amounts to: