14 – Provisions for pensions
Assumptions used to determine the defined benefit obligation (in %) |
|||||||||
|---|---|---|---|---|---|---|---|---|---|
|
|
Germany |
United States |
Switzerland |
United Kingdom |
||||
|
|
June 30, 2015 |
Dec. 31, 2014 |
June 30, 2015 |
Dec. 31, 2014 |
June 30, 2015 |
Dec. 31, 2014 |
June 30, 2015 |
Dec. 31, 2014 |
Discount rate |
|
2.70 |
2.40 |
4.30 |
3.90 |
0.90 |
1.00 |
3.80 |
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 June 30 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 increase in the eurozone discount rate made necessary by capital market developments was primarily responsible for actuarial gains in pension obligations in the first half of 2015. Including the deviation between the actual and standardized return on plan assets, a positive remeasurement occurred in the amount of €1,196 million. This was recognized in other comprehensive income (OCI), taking into account deferred taxes of minus €352 million. This valuation effect was the main reason for the €1,061 million decline in pension provisions.