14 – Provisions for pensions

Assumptions used to determine the defined benefit obligation (in %)

 

 

Germany

United States

Switzerland

United Kingdom

 

 

June 30, 2019

December 31, 2018

June 30, 2019

December 31, 2018

June 30, 2019

December 31, 2018

June 30, 2019

December 31, 2018

Discount rate

 

1.00

1.70

3.30

4.10

0.20

0.90

2.40

2.90

Projected pension increase

 

1.50

1.50

3.10

3.10

Assumptions used to determine expenses for pension benefits (From January 1 to June 30 of the respective year in %)

 

 

Germany

United States

Switzerland

United Kingdom

 

 

2019

2018

2019

2018

2019

2018

2019

2018

Discount rate

 

1.70

1.90

4.10

3.60

0.90

0.50

2.90

2.60

Projected pension increase

 

1.50

1.50

3.10

3.10

The assumptions used to determine the defined benefit obligation as of December 31, 2018, are used in the 2019 fiscal year to determine the expenses for pension plans.

The standardized return on plan assets is calculated by multiplying plan assets at the beginning of the year with the discount rate used for existing defined benefit obligations at the beginning of the year, taking into account benefit and contribution payments to be made during the year.

Actuarial losses of €2,855 million in the defined benefit obligation were mainly attributable to the decrease in the discount rate in all currency zones due to capital market developments in the first half of 2019. Including the deviation between the actual return on plan assets and the standardized return on plan assets, negative remeasurement effects totaled €1,820 million. These were recognized in other comprehensive income (OCI), taking into account deferred taxes of €614 million. Overall, pension provisions rose by €1,629 million compared with December 31, 2018.