| (in millions of euro) | AUGUST 31, 2020 | AUGUST 31, 2019 |
|---|---|---|
| Post-employment benefits – Net defined benefit plan assets* | Post-employment benefits – Net defined benefit plan assets *AUGUST 31, 2020 (3) | Post-employment benefits – Net defined benefit plan assets *AUGUST 31, 2019 (4) |
| Post-employment benefits – Net defined benefit plan obligation | Post-employment benefits – Net defined benefit plan obligation AUGUST 31, 2020 195 | Post-employment benefits – Net defined benefit plan obligation AUGUST 31, 2019 244 |
| Other long-term employee benefits | Other long-term employee benefits AUGUST 31, 2020 150 | Other long-term employee benefits AUGUST 31, 2019 159 |
| Employee benefits | Employee benefits AUGUST 31, 2020 342 | Employee benefits AUGUST 31, 2019 399 |
* Included in “Other non-current assets” in the consolidated statement of financial position.
Under a defined contribution plan, periodic contributions are made to an external entity that is responsible for the administrative and financial management of the plan. Under such a plan, the employer is relieved of any future obligation (the external entity is responsible for paying benefits to employees as they become due and the employer is not required to make additional payments related to prior or current years if the entity does not have sufficient funds).
Contributions to defined contribution plans – which were recognized in operating expenses – amount to 442 million euro for Fiscal 2020, compared to 446 million euro for Fiscal 2019.
Contributions made by the Group are expensed in the period to which they relate.
The characteristics of Sodexo’s principal defined benefit plans are described below:
The United Kingdom plan is regularly evaluated by the plan’s actuary in compliance with UK law. A formal actuarial valuation by the plan’s actuary is required to be conducted every three years, and any shortfall identified at that time must be addressed through mutual agreement between the plan’s Trustee and Sodexo UK. Following a consultation process with the members of the pension plan carried out with a view to freezing benefit accruals for certain members, an agreement was signed in October 2012 between the plan’s Trustee and Sodexo UK whereby from November 1, 2012 the plan would remain open only to employees who transferred to Sodexo UK from the public sector, as Sodexo UK has a legal obligation to pay them certain benefits. As part of the 12-year plan to address the funding shortfall, Sodexo UK also agreed to pay annual contributions of (i) 10 million pounds sterling per year over the five years from January 1, 2013 and (ii) 7.5 million pounds sterling per year over the following seven years. Lastly, in October 2012, Sodexo S.A. issued a Parent company guarantee to the Trustee in order to cover Sodexo UK’s obligations in connection with the plan. This guarantee is for up to 100 million pounds sterling for a duration of 12 years. On completion of the most recent valuation of the fund in July 2016, Sodexo UK and the Trustee agreed to keep unchanged the amount of contributions and the terms and conditions of the Parent company guarantee as set in October 2012.
On October 26, 2018, a judgment was rendered by the High Court of Justice of London in a case concerning the pension plan of another company, on the subject of the equalization of Guaranteed Minimum Pensions (“GMP equalization”) between women and men. This judgment clarifies the applicable statutory provisions and confirms the obligation for trustees of the United Kingdom pension plans to eliminate inequalities in the minimum guaranteed pensions of participants in these plans. The impact of this decision has been recognized in Fiscal 2019 and was not significant.
In Continental Europe other than France, the main defined benefit plans are as follows:
