29. Other provisions

Changes in other provisions in the year ended 31 December 2013Opening balanceIncreasesApplicationReleaseClosing balance
Provision for restructuring expenses 58 194 - (39 568) (18 626) -
Provisions created for potential liabilities relating to CLSiOR investments 916 - - - 916
Provision for disputed claims and potential liabilities under insurance contracts 2 687 388 - - 3 075
Provision for the Office of Competition and Consumer Protection penalties 138 310 - (5 613) (13 148) 119 549
Provision for exit costs of the GraphTalk project 49 925 1 483 - (464) 50 944
Provision for PTE’s reimbursement of undue fees to the Social Insurance Institution 8 836 477 (329) (1 583) 7 401
Other 8 588 6 688 (103) (4 152) 11 021
Other provisions total 267 456 9 036 (45 613) (37 973) 192 906
Changes in other provisions in the year ended 31 December 2012Opening balanceIncreasesApplicationReleaseClosing balance
Provision for restructuring expenses 2012 112 956 - (75 862) (27 253) 9 841
Provision for restructuring expenses 2013 - 48 353 - - 48 353
Provisions created for potential liabilities relating to CLSiOR investments 916 - - - 916
Provision for disputed claims and potential liabilities under insurance contracts 4 019 352 - (1 684) 2 687
Provision for the Office of Competition and Consumer Protection penalties 137 035 1 275 - - 138 310
Provision for exit costs of the GraphTalk project 50 349 628 - (1 052) 49 925
Provision for PTE’s reimbursement of undue fees to the Social Insurance Institution 8 095 1 562 (821) - 8 836
Other 8 693 6 367 (1 217) (5 255) 8 588
Other provisions total 322 063 58 537 (77 900) (35 244) 267 456
 
Other provisions31 December 201331 December 2012
Short-term 177 307 252 310
Long-term 15 599 15 146
Other provisions total 192 906 267 456

Position „Provision for the Office of Competition and Consumer Protection penalties” are described in section 52.2 and 52.3.

Provisions for restructuring expenses are described in section 55.5.

Provision for the GraphTalk project exit costs at PZU Życie

The total “Provision for the GraphTalk project exit costs” includes the provision created for the costs of closing the IT GraphTalk project.

The aforementioned provision is created on the basis of estimated expenditures required to complete the GraphTalk project, indicating the risk of non-achievement of the project goals and the expected economic benefits. Additionally the provisions amount includes estimation of costs of litigation with CSC Computer Sciences Sp. z o.o. – the issue is described section 52.4.

Provision for PTE’s reimbursement of undue handling fees to the Social Insurance Institution

A detailed method for determining and settlement of undue premiums to be returned is regulated in Article 100a of the Act on organization and operation of pension funds of 28 August 1997 (Journal of Laws of 2013 item 989 as amended) pursuant to which if premiums unduly received are returned, the nominal amount of the service fee collected by the society managing a given fund should be returned to the Social Insurance Institution too.

Since 2008, PTE PZU has been recognizing a provision for reimbursement of handling fees related to excess premiums paid by the Social Insurance Institution in previous periods. The estimation of the value of the provision is based on the information provided by the Social Insurance Institution regarding premiums for 1999 – 2013 and the service fee on the premium collected by PTE PZU less the fee reducing the premiums transferred by the Social Insurance Institution.

The reimbursement date of the handling fees collected may not be determined as by the date of signing these consolidated financial statements the Social Insurance Institution had not provided all the information required to calculate the value of the accounting units subject to withdrawal from the individual accounts of OFE PZU members.