Siemens 2007 Annual Report Download - page 263

Notes to Consolidated Financial Statements 263
(in millions of €, except where otherwise stated and per share amounts)
Notes to Consolidated Financial Statements
Pension benefi ts: Pension benefi t payments
The following overview comprises pension benefi ts paid out of the principal pen-
sion benefi t plans during the years ended September 30, 2007 and 2006, and
expected pension payments for the next fi ve years and in the aggregate for the fi ve
years thereafter (undiscounted):
Other post-employment benefi ts
In Germany, employees who entered into the Company’s employment on or before
September 30, 1983, are entitled to transition payments for the fi rst six months
after retirement equal to the difference between their fi nal compensation and the
retirement benefi ts payable under the corporate pension plan. Certain foreign
companies, primarily in the U.S. and Canada, provide other post-employment
benefi ts in the form of medical, dental and life insurance. The amount of obliga-
tions for other post-employment benefi ts in the form of medical and dental bene-
fi ts specifi cally depends on the expected cost trend in the health care sector. To be
entitled to such healthcare benefi ts participants must contribute to the insurance
premiums. Participant contributions are based on specifi c regulations of cost
sharing which are defi ned in the benefi t 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 benefi ts are paid solely by the Company.
Other post-employment benefi ts are illustrated in detail in the subsequent
sections with regard to:
¢ Obligations and funded status,
¢ Plan assets,
¢ Components of NPBC for other post-employment benefi ts,
¢ Amounts recognized in the Consolidated Statements of Income and Expense
recognized in Equity,
¢ Assumptions used in the calculation of the DBO and the NPBC for other post-
employment benefi ts,
¢ Sensitivity analysis, and
¢ Benefi t payments.
The Company did not have any asset ceiling in its principal other post-employ-
ment benefi t plans, neither in fi scal 2007 nor in 2006.
Total Domestic Foreign
Pension benefi ts paid
2006 1,125 788 337
2007 1,226 818 408
Expected pension payments
2008 1,321 833 488
2009 1,370 866 504
2010 1,400 877 523
2011 1,447 899 548
2012 1,447 919 528
2013 – 2017 7,611 4,663 2,948