Siemens 2015 Annual Report Download - page 84

Consolidated Financial Statements

U. K.:
Siemens plc offers benefits through the Siemens Benefit Scheme
for which, until the start of retirement, an inflation increase of
the accrued benefits is mandatory. The required funding is de-
termined by a funding valuation carried out every third year
based on legal requirements. Due to deviating guidelines for the
determination of the discount rates, the technical funding defi-
cit is usually larger than the IFRS funding deficit. To reduce the
deficit Siemens entered into an agreement with the trustees to
provide annual payments of GBP  (€ ) million until fiscal
. The agreement also provides for a cumulative advance
payment by Siemens AG compensating the remaining annual
payments at the date of early termination of the agreement due
to cancellation or insolvency.
Development of the defined benefit plans
in fiscal  and 
Defined benefit
obligation (DBO)
Fair value of
plan assets
Effects of asset
ceiling
Net defined
benefit balance
(I) (II) (III) (I – II + III)
Fiscal year Fiscal year Fiscal year Fiscal year
(in millions of €) 2015 2014 2015 2014 2015 2014 2015 2014
Balance at begin of fiscal year 35,591 33,173 26,505 24,078 202 146 9,288 9,241
Current service cost 536 477 – – ––536 477
Interest expenses 1,076 1,089 – – 11 71,087 1,096
Interest income – – 825 802 ––(825) (802)
Other (177) 4(179) (8) ––212
Components of defined benefit
costs recognized in the
Consolidated Statements of income 1,436 1,570 646 793 11 7801 784
Return on plan assets excluding
amounts included in net interest
income and net interest expenses – – (245) 2,098 ––245 (2,098)
Actuarial (gains) losses (41) 1,972 – – ––(41) 1,972
Effects of asset ceiling – – – – 143 143
Remeasurements recognized
in the Consolidated Statements
of Comprehensive Income (41) 1,972 (245) 2,098 1 43 205 (83)
Employer contributions – – 611 533 ––(611) (533)
Plan participants’ contributions 133 122 133 122 ––– –
Benefits paid (1,753) (1,649) (1,616) (1,514) ––(137) (134)
Settlement payments (47) (7) (47) (7) ––– –
Business combinations, disposals and other 602 (224) 515 (122) 1–88 (102)
Foreign currency translation effects 897 635 793 525 (1) 6 103 115
Other reconciling items (167) (1,123) 390 (463) –6 (557) (654)
Balance at fiscal year-end 36,818 35,591 27,296 26,505 214 202 9,737 9,288
thereof:
Germany 21,469 22,414 14,539 15,105 ––6,930 7,309
U. S. 4,597 3,730 3,162 2,888 ––1,435 842
U. K. 5,612 4,845 5,696 4,818 107 97 22 125
CH 3,432 2,784 2,947 2,673 66 59 551 170
1 Includes past service benefit / costs, settlement gains / losses and administration costs related to liabilities.
Switzerland:
Following the Swiss law of occupational benefits (BVG) each em-
ployer has to grant post-employment benefits for qualifying em-
ployees. Accordingly Siemens in Switzerland sponsors several
cash balance plans. These plans are administered by founda-
tions. The board of the main foundation is composed of equally
many employer and employee representatives. The board of the
foundation is responsible for investment policy and the asset
management, as well as for any changes in the plan rules and the
determination of contributions to finance the benefits. The Com-
pany is required to make total contributions at least as high as
the sum of the employee contributions set out in the plan rules.
In case of an underfunded plan the Company together with the
employees may be asked to pay supplementary contributions ac-
cording to a well defined framework of recovery measures.