Provisions for disputable cases are calculated using the individual method, taking into account the likelihood of occurrence of an outflow of resources embodying economic benefits to fulfill an existing obligation. An outflow of resources is deemed likely if it is more possible that the event will occur than that it will not occur, i.e. when the probability of occurrence of the event is higher than the probability that the event will not occur.
Detailed descriptions and provision amounts are presented in section 55.
The provisions for retirement severance pays and post-mortem benefits are estimated with actuarial methods using appropriate actuarial techniques and assumptions – discount rates, consistent with the zero-coupon Treasury bond yield curve, mortality rate adopted at the level specified in the PLET, expected salary increase rate in individual PZU Group companies, employee turnover rate (diversified in terms of, among others, the employee’s age, years in service and gender) and the disability rate (disability pensions) adopted as an appropriate percentage of the mortality rate.