Siemens 2005 Annual Report Download - page 186

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In fiscal 2005, €1,496 in cash was contributed in October 2004, as follows: €1,380 to the domes-
tic pension plans and €116 to the pension plans in the U.S. In fiscal 2004, €1,255 in cash was con-
tributed in October 2003, as follows: €700 to the domestic pension plans and €555 to the pension
plans in the U.S.
Regular funding is generally based on the level of service costs incurred. For the BSAV funding
corresponds to the contributions to the beneficiaries account. Future funding decisions for the
Company’s pension plans will be made with due consideration of developments affecting plan
assets and pension liabilities, taking into account minimum funding requirements abroad and
local tax deductibility.
Pension benefits: Pension benefit payments
The following overview comprises pension benefits paid out of the principal pension benefit
plans during the years ended September 30, 2005 and 2004, and expected pension payments for
the next five years and in the aggregate for the five years thereafter (undiscounted):
As pension benefit payments for Siemens’ principal funded pension benefit plans reduce the
PBO and plan assets by the same amount, there is no impact on the funded status of such plans.
Other postretirement benefits
In Germany, employees who entered into the Company’s employment on or before September 30,
1983, are entitled to transition payments for the first six months after retirement equal to the dif-
ference between their final compensation and the retirement benefits payable under the corpo-
rate pension plan. Certain foreign companies, primarily in the U.S., provide other postretirement
benefits in the form of medical, dental and life insurance. The amount of obligations for other
postretirement benefits in the form of medical and dental benefits specifically depends on the
expected cost trend in the health care sector. To be entitled to such healthcare benefits partici-
pants must contribute to the insurance premiums. Participant contributions are based on specif-
ic regulations of cost sharing which are defined in the benefit plans. The Company has the right
to adjust the cost allocation at any time, generally this is done on an annual basis. Premiums for
life insurance benefits are paid solely by the Company.
Management’s discussion and analysis
Total Domestic Foreign
Pension benefits paid
2004 991 715 276
2005 1,032 751 281
Expected pension payments
2006 1,134 789 345
2007 1,151 796 355
2008 1,207 832 375
2009 1,236 854 382
2010 1,261 872 389
2011– 2015 7,178 4,829 2,349