Siemens 2011 Annual Report Download - page 306

6 A. To our shareholders 51 C. Combined management’s discussion and analysis 23 B. Corporate Governance
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PENSION BENEFITS: PENSION BENEFIT PAYMENTS
The following overview comprises pension benefits paid out
of the pension benefit plans during the years ended Septem-
ber ,  and , and expected pension payments for the
next five years and in the aggregate for the five years there-
after (undiscounted):
Amounts presented for the years ended September , 
and  in the table include amounts related to Siemens IT
Solutions and Services and OSRAM.
(in millions of €) Total Domestic Foreign
Pension benefits paid
2010 1,512 986 526
2011 1,553 1,005 548
Expected pension payments
2012 1,482 997 485
2013 1,516 986 530
2014 1,535 991 544
2015 1,559 1,007 552
2016 1,577 1,004 573
2017 – 2021 8,240 5,192 3,048
As pension benefit payments for Siemens’ 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.
OTHER POST-EMPLOYMENT BENEFITS
Beginning with fiscal , figures presented cover both prin-
cipal and non-principal pension benefits provided by Siemens.
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 specif-
ic regulations of cost sharing which are defined in the benefit
plans. The Company has the right to adjust the cost allocation
at any time, generally this is done on an annual basis. Premi-
ums for life insurance benefits are paid solely by the Company.
The Company ’s other post-employment benefits are illustrat-
ed in detail in the subsequent sections with regard to:
> Obligations, plan assets and funded status,
> 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.
OTHER POST-EMPLOYMENT BENEFITS:
OBLIGATIONS, PLAN ASSETS AND FUNDED STATUS
The funded status of plan assets and a reconciliation of the
funded status to the amounts recognized in the Consolidated
Statements of Financial Position are as follows:
September ,  September , 
(in millions of €) Total Domestic Foreign Total Domestic Foreign
Fair value of plan assets 4 – 4 4 – 4
Total defined benefit obligation 764 307 457 838 350 488
Defined benefit obligation (funded) 286 – 286 278 – 278
Defined benefit obligation (unfunded) 478 307 171 560 350 210
Funded status (760) (307) (453) (834) (350) (484)
Unrecognized past service cost (benefits) 6 – 6 8 – 8
Net amount recognized (754) (307) (447) (826) (350) (476)