Siemens 2009 Annual Report Download - page 255


 Managing Board statements, Independent auditors’ report, Additional information
 Notes to Consolidated Financial Statements
(in millions of €, except where otherwise
stated and per share amounts)
Principal other post-employment benefits
In Germany, employees who entered into the Company ’s em-
ployment on or before September 30, 1983, are entitled to
transition payments for the first six months after retirement
equal to the difference between their final compensation and
the retirement benefits payable under the corporate pension
plan. Certain foreign companies, primarily in the U.S. and Can-
ada, provide other post-employment benefits in the form of
medical, dental and life insurance. The amount of obligations
for other post-employment benefits in the form of medical and
dental benefits specifically depends on the expected cost trend
in the healthcare sector. To be entitled to such healthcare ben-
efits participants must contribute to the insurance premiums.
Participant contributions are based on specific regulations of
cost sharing which are defined in the benefit plans. The Com-
pany has the right to adjust the cost allocation at any time,
generally this is done on an annual basis. Premiums for life in-
surance benefits are paid solely by the Company.
The Company ’s principal other post-employment benefits 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
▪ Benefit payments.
The actual return over the last twelve months amounted to
10.0% or €1,906 compared to an expected return of 6.5% or
€1,250. The experience adjustment arising on plan assets was
3.5% in fiscal 2009 (fiscal 2008: (16.2)%; fiscal 2007: (0.9)%; fis-
cal 2006: (0.3)%; fiscal 2005: 5.8%). For the domestic pension
plans, €1,546 or 12.9% was realized, as compared to an ex-
pected return on plan assets of 6.5% or an amount of €774 that
was included in the NPBC. For the foreign pension plans, €360
or 5.2% was realized, as compared to an expected return on
plan assets of 6.4% or an amount of €476 that was included in
the NPBC.
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, 2009 and 2008, and expected pension pay-
ments 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 DBO and plan assets by the
same amount, there is no impact on the funded status of such
plans.
Total Domestic Foreign
Pension benefits paid
2008 1,261 871 390
2009 1,338 911 427
Expected pension payments
2010 1,329 910 419
2011 1,363 945 418
2012 1,390 962 428
2013 1,401 963 438
2014 1,427 977 450
2015 – 2019 7,554 5,114 2,440
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