14 – Provisions for pensions
Assumptions used to determine the defined benefit obligation (in %) |
|||||||||
|---|---|---|---|---|---|---|---|---|---|
|
|
Germany |
United States |
Switzerland |
United Kingdom |
||||
|
|
Sep. 30, 2015 |
Dec. 31, 2014 |
Sep. 30, 2015 |
Dec. 31, 2014 |
Sep. 30, 2015 |
Dec. 31, 2014 |
Sep. 30, 2015 |
Dec. 31, 2014 |
Discount rate |
|
2.40 |
2.40 |
4.30 |
3.90 |
0.80 |
1.00 |
4.00 |
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 September 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 discount rate required in several currency zones as a result of capital market developments in the first three quarters of 2015 led to actuarial gains in the defined benefit obligation. Unfavorable stock market developments in the third quarter of 2015 were especially responsible for negative remeasurements amounting to €209 million, including the deviation between the actual and standardized return on plan assets, in the reporting period. These valuation effects were the main reason for the €158 million increase in pension provisions.