Siemens 2009 Annual Report Download - page 248

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 Reports Supervisory Board /
Managing Board  Corporate Governance  Management’s discussion and analysis  Consolidated Financial Statements
 Consolidated Statements of Income  Consolidated Statements of Income
and Expense Recognized in Equity
 Consolidated Balance Sheets  Consolidated Statements of Cash Flow
The Company ’s principal pension benefit plans are explicitly
explained in the subsequent sections with regard to:
▪ Pension obligations and funded status,
▪ Components of NPBC,
▪ Amounts recognized in the Consolidated Statements of
Income and Expense recognized in Equity,
▪ Assumptions used for the calculation of the DBO and NPBC,
▪ Sensitivity analysis,
▪ Plan assets, and
▪ Pension benefit payments.
In addition to the above, the Company has foreign defined con-
tribution plans for pensions and other post-employment ben-
efits or makes contributions to social pension funds based on
legal regulations (State plans). The recognition of a liability is
not required because the obligation of the Company is limited
to the payment of the contributions into these plans or funds.
Other in the table above includes non-principal pension bene-
fit plans, non-principal other post-employment benefit plans
and other long-term post-employment benefit plans. Other
long-term post-employment benefit plans include benefits
granted to former employees immediately after the end of
their employment, independent of the employee’s reason for
leaving.
Principal pension benefits
The principal pension benefit plans cover 488,000 partici-
pants, including 188,000 active employees, 100,000 former
employees with vested benefits and 200,000 retirees and sur-
viving dependents. Individual benefits are generally based on
eligible compensation levels and/or ranking within the Com-
pany hierarchy and years of service. Retirement benefits under
these plans vary depending on legal, fiscal and economic re-
quirements in each country. The majority of Siemens’ active
employees in Germany participate in a pension scheme intro-
duced in fiscal 2004, the BSAV (Beitragsorientierte Siemens
Altersversorgung). The BSAV is a funded defined benefit pen-
sion plan whose benefits are predominantly based on contri-
butions made by the Company and returns earned on such
contributions, subject to a minimum return guaranteed by the
Company. The BSAV is funded via the BSAV Trust. In connec-
tion with the implementation of the BSAV, benefits provided
under defined benefit pension plans funded via the Siemens
German Pension Trust were modified to substantially elimi-
nate the effects of compensation increases by freezing the ac-
crual of benefits under the majority of these plans.