Note 46 Provisions
€ million | Long-service benefits | Termination benefits | Other provisions | Total |
Carrying amount as at 1 January 2019 | 14 | 6 | 10 | 30 |
Movements 2019 | ||||
Released | -1 | -4 | -12 | -17 |
Added | 2 | 13 | 22 | 37 |
Utilised | -1 | -11 | -8 | -20 |
Reclassification to short-term liabilities | - | - | 1 | 1 |
Major curtailments and settlements | - | 1 | - | 1 |
Total | - | -1 | 3 | 2 |
Carrying amount as at 31 December 2019 | 14 | 5 | 13 | 32 |
Movements 2020 | ||||
Transfers | - | - | -1 | -1 |
Released | - | -6 | -2 | -8 |
Added | 3 | 14 | 22 | 39 |
Utilised | -1 | -8 | -8 | -17 |
Reclassification to short-term liabilities | - | -2 | -1 | -3 |
Major curtailments and settlements | -3 | - | -11 | -14 |
Total | -1 | -2 | -1 | -4 |
Carrying amount as at 31 December 2020 | 13 | 3 | 12 | 28 |
Long-service benefits are built up in advance through this provision for all Alliander permanent staff. The network companies reached agreement with the unions on a new collective labour agreement at the end of 2018. The new collective labour agreement includes changes to the long-service benefits scheme: the existing long-service benefits payable at 10, 20, 30, 40, and 50 years of service and the proportionate long-service benefits scheme are being discontinued. Furthermore, the benefit payable on retirement (1.5 times monthly salary) ceases at the end of 2019. The revised long-service benefits scheme covers long-service benefits payable on attaining 25 and 40 years of service. In addition, employees born before 1 January 1963 (aged 58 or older) and in the company’s employment on 31 December 2019 retain their right to the benefit on retirement. Also, the 50-year long-service benefit will continue for five years from 1 January 2020. The provision as at year-end 2020 amounted to €13 million.
The provision for termination benefits covers payments and/or supplements to benefits paid to employees whose employment contract has been or probably will be terminated. These benefits and supplements are based on the Social Plan operated by Alliander and individual arrangements. The Social Plan is periodically renegotiated and agreed. In 2020, an amount of €14 million was added to the reorganisation provision (2019: €13 million). The provision for termination payments/reorganisations, including the current portion of €7 million, totalled €10 million at the end of 2020 (2019: €10 million).
The other provisions include provisions for long-term sickness absence.