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PENSION PLANS AND OTHER POST-EMPLOYMENT BENEFITS (Tables)
 12 Months Ended
Dec. 31, 2024
PENSION PLANS AND OTHER POST-EMPLOYMENT BENEFITS  
Schedule of plans sponsored by the Company and its subsidiaries and related benefit types
PlanTypeEntitySponsor
PBS-ADefined benefit (DB)SistelTelefônica Brasil, jointly with other telecoms resulting from privatization of the Sistema Telebrás
PAMA / PCEDefined benefit (DB)SistelTelefônica Brasil, jointly with other telecoms resulting from privatization of the Sistema Telebrás
Healthcare – Law No. 9656/98Defined benefit (DB)Telefônica BrasilTelefônica Brasil, Terra Networks, TGLog, TIS, IoTCo Brasil and CloudCo Brasil
CTBDefined benefit (DB)Telefônica BrasilTelefônica Brasil
Telefônica BDDefined benefit (DB)VisãoPrevTelefônica Brasil
VISÃODefined contribution (DC) / HybridVisãoPrevTelefônica Brasil, Terra Networks, TGLog, TIS, IoTCo Brasil and CloudCo Brasil
Schedule of reconciliation of net liabilities (assets)
12.31.202412.31.2023
Post-retirement pension plansPost-retirement health plansTotalPost-retirement pension plansPost-retirement health plansTotal
Present value of DB plan obligations1,954,418 1,548,742 3,503,160 2,167,726 1,917,650 4,085,376 
Fair value of plan assets3,158,617 885,337 4,043,954 3,233,947 920,586 4,154,533 
Net liabilities (assets)(1,204,199)663,405 (540,794)(1,066,221)997,064 (69,157)
Asset limitation1,112,307 — 1,112,307 1,072,192 — 1,072,192 
Current assets(73,314)— (73,314)(30,673)— (30,673)
Non-current assets(83,732)— (83,732)(43,375)— (43,375)
Current liabilities8,678 22,349 31,027 8,683 22,905 31,588 
Non-current liabilities56,476 641,056 697,532 71,336 974,159 1,045,495 
Summary of total expenses recognized in the income statement
202420232022
Post-retirement pension plansPost-retirement health plansTotalPost-retirement pension plansPost-retirement health plansTotalPost-retirement pension plansPost-retirement health plansTotal
Current service cost2,037 15,806 17,843 1,747 9,378 11,125 1,857 13,667 15,524 
Net interest on net actuarial assets/liabilities71 91,769 91,840 5,903 68,825 74,728 (2,466)51,628 49,162 
Total2,108 107,575 109,683 7,650 78,203 85,853 (609)65,295 64,686 
Summary of amounts recognized in other comprehensive income (loss)
202420232022
Post-retirement pension plansPost-retirement health plansTotalPost-retirement pension plansPost-retirement health plansTotalPost-retirement pension plansPost-retirement health plansTotal
Actuarial losses (gains)(73,304)(425,490)(498,794)352,011 352,974 704,985 (46,511)6,843 (39,668)
Asset limitation effect(56,647)— (56,647)(431,071)(126,032)(557,103)46,240 71,149 117,389 
Total (129,951)(425,490)(555,441)(79,060)226,942 147,882 (271)77,992 77,721 
Income tax and social contribution levied on the total amounts recognized in other comprehensive income were: (i) in 2024: R$188,153, of which R$149,103 was deferred income tax and social contribution and R$39,050 was current income tax and social contribution; (ii) in 2023: (R$48,925), of which (R$79,229) was deferred income tax and social contribution and R$30,304 was current income tax and social contribution; and (ii) in 2022: R$26,335, was deferred income tax and social contribution.
Schedule of changes in amount net of liability (asset) of defined benefit, net
12.31.202412.31.2023
Post-retirement pension plansPost-retirement health plansTotalPost-retirement pension plansPost-retirement health plansTotal
Net defined benefit liability (asset) at the beginning of the year5,971 997,064 1,003,035 64,725 700,930 765,655 
Expenses2,108 107,575 109,683 7,650 78,203 85,853 
Sponsor contributions(9,588)(15,744)(25,332)(10,108)(9,011)(19,119)
Amounts recognized in OCI(129,951)(425,490)(555,441)(79,060)226,942 147,882 
Distribution of reserves39,568 — 39,568 22,764 — 22,764 
Net defined benefit liability (asset) at the end of the year(91,892)663,405 571,513 5,971 997,064 1,003,035 
Actuarial assets per balance sheet(157,046)— (157,046)(74,048)— (74,048)
Actuarial liabilities per balance sheet65,154 663,405 728,559 80,019 997,064 1,077,083 
Schedule of results projected for 2023
Post-retirement pension plansPost-retirement health plansTotal
Current service cost1,781 8,381 10,162 
Net interest on net defined benefit liability/asset23,900 73,915 97,815 
Total25,681 82,296 107,977 
Schedule of sponsoring company contributions projected for 2023
Post-retirement pension plansPost-retirement health plansTotal
Sponsor contributions1,645 52 1,697 
Benefits paid directly by the sponsor8,678 22,486 31,164 
Total10,323 22,538 32,861 
Schedule of average weighted duration of defined benefit liability
Post-retirement pension plansPost-retirement health plans
In 2024
6.9 years
11.8 years
In 2023
8.0 years
13.8 years
Schedule of actuarial assumptions
12.31.2024
Post-retirement pension plansPost-retirement health plans
Discount rate to present value of defined benefit liability
11.07% to 11.67%
11.07% to 11.20%
Future salary growth rate
4.57% to 6.60%
N/A
Medical expense growth rateN/A
6.61%
Nominal annual adjustment rate of pension benefits
3.50%
N/A
Medical service eligibility ageN/A
59 to 63 years
Estimated retirement age
57 to 60 years
59 to 63 years
Mortality table for nondisabled individuals
AT-2000 Basic segregated by gender, down-rated by 10% and 50%
AT-2000 Basic segregated by gender, down-rated by 10%
Mortality table for disabled individuals
RP-2000 Disabled Male, down-rated by 60%
RP-2000 Disabled Male, down-rated by 60%
Disability table
Light-Forte, Álvaro Vindas (down-rated by 50%) and Light-Fraca, down rated by 50%
Light-Forte
TurnoverTurnover experience in VISÃO plans (2018 to 2022)Turnover experience in VISÃO plans (2020 to 2022)
12.31.2023
Post-retirement pension plansPost-retirement health plans
Discount rate to present value of defined benefit liability
8.90% to 9.07%
9.07% to 9.18%
Future salary growth rate
4.57% to 6.60%
N/A
Medical expense growth rateN/A
6.61%
Nominal annual adjustment rate of pension benefits
3.50%
N/A
Medical service eligibility ageN/A
59 to 63 years
Estimated retirement age
57 to 60 years
59 to 63 years
Mortality table for nondisabled individuals
AT-2000 Basic segregated by gender, down-rated by 10% and 50%
AT-2000 Basic segregated by gender, down-rated by 10%
Mortality table for disabled individuals
RP-2000 Disabled Male, down-rated by 60%
RP-2000 Disabled Male, down-rated by 60%
Disability table
Light-Forte, Álvaro Vindas (down-rated by 50%) and Light-Fraca, down rated by 50%
Light-Forte
TurnoverTurnover experience in VISÃO plans (2018 to 2022)Turnover experience in VISÃO plans (2020 to 2022)
In addition to the assumptions presented in the tables above, for 2024 and 2023 other assumptions common to all plans were adopted, as follows: (i) long-term inflation rate: 3.50% in 2024 and 2023; and (ii) annual increase in the use of medical services according to age: 4.0% in 2024 and 2023.
31.c.3.12. Changes in actuarial assumptions in relation to the prior year
In order to adjust some actuarial assumptions to the economic and demographic reality, a study was conducted for the plans administered by Visão Prev and Sistel, which adopted the definition of the assumptions in their Deliberative Councils.
The main economic and financial assumptions that have changed in relation to the previous fiscal year and that interfere with the defined benefit liability are: (i) rates for discount to present value of the defined benefit liability; (ii) long-term inflation rate; (iii) rate of future wage growth; (iv) rate of growth of medical costs; and (v) annual nominal index of adjustment of social security benefits.
The impacts on the plans’ defined benefit liabilities due to the new definition of the actuarial assumptions are as follows:
Post-retirement pension plansPost-retirement health plansTotal
Defined benefit liability, based on current actuarial assumptions1,954,418 1,548,742 3,503,160 
Defined benefit liability, based on prior-year actuarial assumptions2,253,950 1,955,912 4,209,862 
Difference from change in actuarial assumptions(299,532)(407,170)(706,702)
31.c.3.13. Sensitivity analysis for actuarial assumptions
The Company believes that the significant actuarial assumptions with reasonable likelihood of variation due to financial and economic scenarios, which could significantly change the amount of the defined benefit obligation, are the discount rate used to adjust the defined benefit liability to present value and the rate of growth of medical costs.
Below, we present a sensitivity analysis on the defined benefit obligation for scenarios of a 0.5% increase and a 0.5% reduction in the discount rate used to adjust the defined benefit liability to present value.
Post-retirement pension plansPost-retirement health plansTotal
Defined benefit liability, projected by the current medical cost growth rate1,954,418 1,548,742 3,503,160 
Considering a rate increased by 1%1,954,418 1,730,907 3,685,325 
Considering a rate decreased by 1%1,954,418 1,395,519 3,349,937 
Defined benefit liability, discounted to present value at current rate1,954,418 1,548,742 3,503,160 
Considering a rate increased by 0.5%1,900,202 1,469,618 3,369,820 
Considering a rate decreased by 0.5%2,012,028 1,635,539 3,647,567 
31.c.3.14. Allocation of plan assets
Consolidado
12.31.202412.31.2023
Post-retirement pension plansPost-retirement health plansTotalPost-retirement pension plansPost-retirement health plansTotal
Investments with market value quoted in active market:
Fixed income investments
National Treasury Note (NTN)2,417,123 850,897 3,268,020 2,571,155 867,468 3,438,623 
Treasury Financial Letter605,490 12,041 617,531 398,452 53,118 451,570 
Repurchase operations14,203 — 14,203 139,788 — 139,788 
Debentures14,148 — 14,148 17,840 — 17,840 
Financial Letter1,309 — 1,309 805 — 805 
FIDC shares / Others3,370 — 3,370 2,821 — 2,821 
National Treasury Notes (LTN)4,629 22,399 27,028 — — — 
Variable income investments
Investments linked to funds and market indexes4,509 — 4,509 4,917 — 4,917 
Real estate investments75,862 — 75,862 79,423 — 79,423 
Loans to participants15,654 — 15,654 16,669 — 16,669 
Structured and overseas investments2,320 — 2,320 2,077 — 2,077 
Total3,158,617 885,337 4,043,954 3,233,947 920,586 4,154,533 
Schedule of impacts on the plans' defined benefit liabilities due to the new definition of the actuarial assumptions
Post-retirement pension plansPost-retirement health plansTotal
Defined benefit liability, based on current actuarial assumptions1,954,418 1,548,742 3,503,160 
Defined benefit liability, based on prior-year actuarial assumptions2,253,950 1,955,912 4,209,862 
Difference from change in actuarial assumptions(299,532)(407,170)(706,702)
Schedule of sensitivity analysis for actuarial assumptions
Post-retirement pension plansPost-retirement health plansTotal
Defined benefit liability, projected by the current medical cost growth rate1,954,418 1,548,742 3,503,160 
Considering a rate increased by 1%1,954,418 1,730,907 3,685,325 
Considering a rate decreased by 1%1,954,418 1,395,519 3,349,937 
Defined benefit liability, discounted to present value at current rate1,954,418 1,548,742 3,503,160 
Considering a rate increased by 0.5%1,900,202 1,469,618 3,369,820 
Considering a rate decreased by 0.5%2,012,028 1,635,539 3,647,567 
Summary of allocation of plan assets
Consolidado
12.31.202412.31.2023
Post-retirement pension plansPost-retirement health plansTotalPost-retirement pension plansPost-retirement health plansTotal
Investments with market value quoted in active market:
Fixed income investments
National Treasury Note (NTN)2,417,123 850,897 3,268,020 2,571,155 867,468 3,438,623 
Treasury Financial Letter605,490 12,041 617,531 398,452 53,118 451,570 
Repurchase operations14,203 — 14,203 139,788 — 139,788 
Debentures14,148 — 14,148 17,840 — 17,840 
Financial Letter1,309 — 1,309 805 — 805 
FIDC shares / Others3,370 — 3,370 2,821 — 2,821 
National Treasury Notes (LTN)4,629 22,399 27,028 — — — 
Variable income investments
Investments linked to funds and market indexes4,509 — 4,509 4,917 — 4,917 
Real estate investments75,862 — 75,862 79,423 — 79,423 
Loans to participants15,654 — 15,654 16,669 — 16,669 
Structured and overseas investments2,320 — 2,320 2,077 — 2,077 
Total3,158,617 885,337 4,043,954 3,233,947 920,586 4,154,533 
Present value of defined benefit obligation [member]  
PENSION PLANS AND OTHER POST-EMPLOYMENT BENEFITS  
Schedule of results projected for 2023
12.31.202412.31.2023
Post-retirement pension plansPost-retirement health plansTotalPost-retirement pension plansPost-retirement health plansTotal
Defined benefit liability at the beginning of the year2,167,726 1,917,650 4,085,376 1,969,220 1,495,397 3,464,617 
Current service costs2,037 15,806 17,843 1,747 9,378 11,125 
Interest on actuarial liabilities186,004 172,297 358,301 183,161 143,981 327,142 
Benefits paid (196,336)(82,107)(278,443)(192,759)(69,670)(262,429)
Member contributions paid182 — 182 231 — 231 
Actuarial losses (gains) adjusted by experience94,337 (67,734)26,603 89,991 156,879 246,870 
Actuarial losses (gains) adjusted by financial assumptions(299,532)(407,170)(706,702)115,649 155,209 270,858 
Actuarial losses (gains) adjusted by demographic assumptions— — — 486 26,476 26,962 
Defined benefit liability at the end of the year1,954,418 1,548,742 3,503,160 2,167,726 1,917,650 4,085,376 
Plan assets [member]  
PENSION PLANS AND OTHER POST-EMPLOYMENT BENEFITS  
Schedule of changes in amount net of liability (asset) of defined benefit, net
12.31.202412.31.2023
Post-retirement pension plansPost-retirement health plansTotalPost-retirement pension plansPost-retirement health plansTotal
Fair value of plan assets at the beginning of the year3,233,947 920,586 4,154,533 3,273,309 909,271 4,182,580 
Benefits paid(188,315)(66,412)(254,727)(184,151)(60,705)(244,856)
Participants contributions paid182 — 182 231 — 231 
Sponsor contributions paid1,566 49 1,615 1,500 46 1,546 
Interest income on plan assets282,696 80,528 363,224 311,706 86,385 398,091 
Return on plan assets excluding interest income(131,891)(49,414)(181,305)(145,884)(14,411)(160,295)
Distribution of reserves(39,568)— (39,568)(22,764)— (22,764)
Fair value of plan assets at the end of the year3,158,617 885,337 4,043,954 3,233,947 920,586 4,154,533 
Effect of asset ceiling [member]  
PENSION PLANS AND OTHER POST-EMPLOYMENT BENEFITS  
Schedule of changes in amount net of liability (asset) of defined benefit, net
12.31.202412.31.2023
Post-retirement pension plansPost-retirement health plansTotalPost-retirement pension plansPost-retirement health plansTotal
Asset Limitation at the beginning of the year1,072,192 — 1,072,192 1,368,814 114,804 1,483,618 
Interest on the asset limitation96,762 — 96,762 134,449 11,228 145,677 
Changes in the assets limitation, except interest(56,647)— (56,647)(431,071)(126,032)(557,103)
Asset Limitation at the end of the year1,112,307 — 1,112,307 1,072,192 — 1,072,192