Notes to the Consolidated Statement of Financial Position
27 Provisions for pensions and similar obligations (page 1/3)
The Heidelberg Group operates pension schemes – either directly or through premium payments to schemes financed by private institutions – for the majority of employees for the time after their retirement. The amount of benefit payments depends on the conditions in particular countries. The amounts are generally based on the term of employment and the salary of the employees. Liabilities include both those arising from current pensions as well as vested pension rights for pensions payable in the future. The pension payments expected following the start of benefit payments are distributed over the employee’s full period of employment. The group of beneficiaries participating in the defined benefit plans financed by funds at Heidelberger Druckmaschinen Aktiengesellschaft and Heidelberger Druckmaschinen Vertrieb Deutschland GmbH has been closed.
The expenses for defined contribution plans amounted to € 58,511 thousand (previous year: € 50,554 thousand) in the reporting year and essentially include contributions to the statutory pension insurance.
The so-called third option was exercised in line with IAS 19. In line with this, actuarial gains and losses and the restrictions of IAS 19.58b) are offset in equity.
As part of a contractual trust arrangement (CTA) of Heidelberger Druckmaschinen Aktiengesellschaft and Heidelberger Druckmaschinen Vertrieb Deutschland GmbH set up in March 2006, assets were transferred to a trustee, Heidelberg Pension-Trust e. V., Heidelberg. The purpose of the CTA is to finance all pension obligations.
The calculation of the pension provisions is based on the following assumptions:
|Figures in percent||Germany||2009/2010 Abroad||Germany||2010/2011 Abroad|
|Expected return on plan assets||3.73||5.44||4.91||5.16|
|Expected future salary increases||3.00||2.68||3.00||2.69|
|Expected future pension increases||2.00||2.00||2.00||2.04|
To determine the expected return on plan assets, we use amounts generated in the past and forecasts concerning the expected development of plan assets.
The information on pensions is structured as follows:
- Composition and development of the net carrying amounts.
- Reconciliation of the defined benefit obligation for employees and the fair value of plan assets to the provisions for pensions.
- Development of the present value of the defined benefit obligation for employees.
- Development of the fair value of plan assets.
- Composition of plan assets.
- Breakdown of retirement benefit expenses.
- Five-year comparison: total defined benefit obligation for employees and experience adjustments.