Financial performance 2024 consolidated financial statements 05 The Group's main pension plans are as follows: United States The defined benefit plan in the United States is the Michelin Retirement Plan (MRP). The plan was closed to new entrants as of January 1, 2004. Accruals were frozen under the plan as of December 31, 2016. All employees are enrolled in a defined contribution plan. The plan provides for a guaranteed monthly annuity at retirement based on a set formula that takes into consideration the years of plan membership and average pensionable earnings. Only employees who have voluntarily joined the defined contribution plan may receive a lump sum payment. The plan includes a cost-of-living adjustment clause applicable to the pensions of employees hired before January 1, 1991. The plan is funded solely by employer contributions. Canada There is one major defined benefit plan in Canada, the Pension Plan for the Employees of Michelin North America (Canada) Inc. and Participating Employers (MR Plan). The MR Plan was closed to new entrants as from January 1, 2005. Accruals for most of the participants were frozen under the plan as of December 31, 2015. All employees are enrolled in a defined contribution plan. The plan provides a guaranteed monthly annuity at retirement based on a defined formula that takes into consideration the years of plan membership and total pensionable recurring earnings. The plan includes an indexation clause applicable to the benefits, based on the increase in the Consumer Price Index less a deduction. The plan is funded solely by employer contributions. United Kingdom The defined benefit retirement plan in the UK is the Michelin Pension and Life Assurance Plan. This plan was closed to new entrants as from March 31, 2005. It was closed to all future accruals as of January 1, 2009 and has been replaced by a defined contribution plan. Accruals up to December 31, 2008 are frozen but pensions are still linked to the average final salary at retirement. The amount of the annual pension is based on the employee's pensionable earnings. Most employees opt to receive the maximum amount allowed by tax legislation in the form of a lump sum. The amount of the pension benefit is indexed to a capped inflation rate for members who did not choose the pension increase exchange option. On September 20, 2024, a buy-in policy was purchased from an insurance company. Germany The main defined benefit retirement plan in Germany is the “Versorgungsordnung 1979” (VO 1979). The plan was closed to new entrants as from January 1, 2000. Since this date, new entrants have been enrolled in defined contribution plans. The plan provides for a lifetime monthly annuity which is based on the employee's pensionable earnings. There is a legal obligation to adjust the pension annuity every three years for inflation up to the average increase in the employees' salaries. France The main defined benefit pension plan is "Régime de retraite supplémentaire MFPM". Benefits are payable under this plan only if the beneficiary is still a Group employee or officer on retirement. Benefits have been reduced gradually since January 1, 2013. In accordance with government order 201-697 dated July 3, 2019, this plan was closed to new members on July 3, 2019 and the vesting period was frozen at December 31, 2019. The plan has now been replaced by defined contribution plans. The Group's other main defined benefit plans are as follows: United States Some retirees and their dependents are also covered by medical insurance. For the most part, the retirees concerned were hired before January 1, 2004. This plan is not pre-funded. Canada Some retirees and their dependents are also covered by medical insurance. This plan has been closed to new entrants since January 1, 2005 and is not funded. 382 2024 UNIVERSAL REGISTRATION DOCUMENT_MICHELIN
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