Siemens 2008 Annual Report Download - page 263

Notes to Consolidated Financial Statements 167
(in millions of €, except where otherwise stated and per share amounts)
As pension benet payments for Siemens’ principal funded pension benet plans reduce the DBO and plan
assets by the same amount, there is no impact on the funded status of such plans.
Principal other post-employment benets
In Germany, employees who entered into the Company’s employment on or before September 30, 1983, are enti-
tled to transition payments for the rst six months after retirement equal to the difference between their nal
compensation and the retirement benets payable under the corporate pension plan. Certain foreign compa-
nies, primarily in the U.S. and Canada, provide other post-employment benets in the form of medical, dental
and life insurance. The amount of obligations for other post-employment benets in the form of medical and
dental benets specically depends on the expected cost trend in the health care sector. To be entitled to such
healthcare benets participants must contribute to the insurance premiums. Participant contributions are
based on specic regulations of cost sharing which are dened in the bene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
benets are paid solely by the Company.
The Company’s principal other post-employment benets are illustrated in detail in the subsequent sections
with regard to:
 Obligations and funded status,
 Plan assets,
 Components of NPBC,
 Amounts recognized in the Consolidated Statements of Income and Expense recognized in Equity,
 Assumptions used in the calculation of the DBO and the NPBC,
 Sensitivity analysis, and
 Benet payments.
In scal 2008 and 2007, the Company had no asset ceiling in its principal other post-employment benet plans.
Other post-employment benets: Obligations and funded status
The funded status of plan assets and a reconciliation of the funded status to the amounts recognized in the
Consolidated Balance Sheets are as follows:
September 30, 2008 September 30, 2007
Total Domestic Foreign Total Domestic Foreign
Fair value of plan assets 3 – 3 3 – 3
Total dened benet obligation 650 288 362 779 321 458
Dened benet obligation (funded) 247 – 247 287 – 287
Dened benet obligation (unfunded) 403 288 115 492 321 171
Funded status (647) (288) (359) (776) (321) (455)
Unrecognized past service cost (benets) 8 – 8 10 – 10
Net amount recognized (639) (288) (351) (766) (321) (445)