XXIII. Post-employment and other employee benefit provisions

This item amounted to €126,129k at the close of the year, a decrease of €9,713k with respect to 31 December 2007.
As mentioned earlier, since 2008 the Group has opted for the corridor method of recognising actuarial gains and losses, which is more gradual than the previous method of full recognition in the income statement. The opening balances have been adjusted accordingly.
The table below shows details of the employee benefit provisions included in this item. The legal obligation for Italian post-employment benefits ("trattamento di fine rapporto", or "TFR") is €82,949k, compared with €72,695k determined on an actuarial basis.XXIII. Post-employment and other employee benefit provisions

The following is a reconciliation of the present value of the obligation and the fair value of assets against the liability recognised at 31 December 2008:

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The actuarial assumptions used to calculate defined benefit plans are summarised in the following table:

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Below are the total amounts recognised in the income statement for defined benefit plans:

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Interest expense is recognised under "Financial expense" net of the expected yield on plan assets, while the postemployment benefit cost is recognised under "Personnel expense". The benefit cost at 31 December 2007 reflected the rule changes introduced by Italy's TFR reform, which caused the recognition of a net excess in the amount of €6,404k.

Movements in the present value of post-employment benefit obligations are as follows:

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This table shows movements in the present value of plan assets:

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The main categories of plan assets are:

  • capital instruments;
  • bonds;
  • other securities;
  • other debt instruments issued by third parties;
  • real estate.