Siemens 2005 Annual Report Download - page 183

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The weighted-average assumptions used for determining the NPPC for the fiscal years ended
September 30, 2006, 2005 and 2004 are shown in the following table:
The discount rate assumptions reflect the rates available on high-quality, fixed-income invest-
ments of appropriate duration at the measurement date of each plan. The expected return on plan
assets is determined on a uniform basis, considering long-term historical returns, asset alloca-
tion, and future estimates of long-term investment returns. Actuarial assumptions not shown in
the table above, such as employee turnover, mortality, disability, etc., remained primarily
unchanged in 2005.
Notes to Consolidated Financial Statements
Consolidated Financial Statements Notes to Consolidated Financial Statements
(in millions of €, except where otherwise stated
and per share amounts)
Year ended September 30, 2006 Year ended September 30, 2005 Year ended September 30, 2004
Total Domestic Foreign Total Domestic Foreign Total Domestic Foreign
Discount rate 4.5% 4.35% 4.9% 5.5% 5.25% 5.9% 5.4% 5.25% 5.6%
Germany 4.35% 5.25% 5.25%
U.S. 5.25% 6.5% 6.25%
U.K. 4.9% 5.7% 5.4%
Expected return on plan assets 6.7% 6.7% 6.7% 6.7% 6.75% 6.6% 6.7% 6.75% 6.6%
Germany 6.7% 6.75% 6.75%
U.S. 6.95% 6.95% 6.95%
U.K. 6.75% 6.85% 6.85%
Rate of compensation increase 2.6% 2.25% 3.2% 2.6% 2.25% 3.3% 2.5% 2.25% 2.9%
Germany 2.25% 2.25% 2.25%
U.S. 3.25% 3.25% 3.0%
U.K. 3.7% 4.0% 3.6%
Rate of pension progression 1.2% 1.0% 2.0% 1.3% 1.0% 2.3% 1.4% 1.25% 2.1%
Germany 1.0% 1.0% 1.25%
U.K. 2.7% 2.8% 2.6%