Siemens 2010 Annual Report Download - page 260

6 To our shareholders 21 Corporate Governance 49 Combined management’s discussion and analysis
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Pension benefits: Pension benefit payments
The following overview comprises pension benefits paid out of
the principal pension benefit plans during the years ended
September ,  and , and expected pension payments
for the next five years and in the aggregate for the five years
thereafter (undiscounted):
Total Domestic Foreign
Pension benefits paid
2009 1,361 911 450
2010 1,375 944 431
Expected pension payments
2011 1,397 941 456
2012 1,436 975 461
2013 1,434 965 469
2014 1,459 979 480
2015 1,481 994 487
2016 – 2020 7,749 5,153 2,596
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.
Principal other post-employment benefits
In Germany, employees who entered into the Company ’s em-
ployment on or before September , , 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
Canada, provide other post-employment benefits in the form
of medical, dental and life insurance. The amount of obliga-
tions for other post-employment benefits in the form of medi-
cal and dental benefits specifically depends on the expected
cost trend in the healthcare sector. To be entitled to such
healthcare benefits, participants must contribute to the insur-
ance premiums. Participant contributions are based on spe-
cific regulations of cost sharing which are defined in the ben-
efit plans. The Company has the right to adjust the cost alloca-
tion at any time, generally this is done on an annual basis.
Premiums for life insurance 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
Comprehensive Income,
> Assumptions used in the calculation of the DBO
and the NPBC,
> Sensitivity analysis, and
> Benefit payments.