14 – Provisions for pensions
|
Assumptions used to determine the defined benefit obligation (in %) | |||||||||
|---|---|---|---|---|---|---|---|---|---|
|
|
|
Germany |
United States |
Switzerland |
United Kingdom | ||||
|
|
|
Mar. 31, 2015 |
Dec. 31, 2014 |
Mar. 31, 2015 |
Dec. 31, 2014 |
Mar. 31, 2015 |
Dec. 31, 2014 |
Mar. 31, 2015 |
Dec. 31, 2014 |
|
Discount rate |
|
1.60 |
2.40 |
3.70 |
3.90 |
0.60 |
1.00 |
3.40 |
3.70 |
|
Projected pension increase |
|
1.75 |
1.75 |
− |
− |
− |
− |
2.90 |
2.90 |
|
Assumptions used to determine expenses for pension benefits (from January 1 through March 31 of the respective year in %) | |||||||||
|---|---|---|---|---|---|---|---|---|---|
|
|
|
Germany |
United States |
Switzerland |
United Kingdom | ||||
|
|
|
2015 |
2014 |
2015 |
2014 |
2015 |
2014 |
2015 |
2014 |
|
Discount rate |
|
2.40 |
3.90 |
3.90 |
4.80 |
1.00 |
2.40 |
3.70 |
4.40 |
|
Projected pension increase |
|
1.75 |
2.00 |
− |
− |
− |
− |
2.90 |
3.10 |
The assumptions used to determine the defined benefit obligation as of December 31, 2014, are to be used in the 2015 reporting year to determine the expenses for pension plans.
The standardized return on plan assets is ascertained by multiplying plan assets at the beginning of the year with the discount rate used for existing obligations at the beginning of the year. This takes into account expected benefit and contribution payments made during the year.
The considerable drop in the discount rate due to capital market developments in the first quarter of 2015 in all relevant countries was primarily responsible for actuarial losses in the defined benefit obligation. Including the deviation between the actual and standardized return on plan assets as well as the change in the asset ceiling, a negative remeasurement occurred in the amount of €2,129 million. This was recognized in other comprehensive income (OCI), taking into account deferred taxes of €677 million. This valuation effect was the main reason for the €2,269 million increase in pension provisions.