14 – Provisions for pensions
|
|
Germany |
United States |
Switzerland |
United Kingdom |
||||
|---|---|---|---|---|---|---|---|---|---|
|
|
June 30, |
Dec. 31, |
June 30, |
Dec. 31, |
June 30, |
Dec. 31, |
June 30, |
Dec. 31, |
Discount rate |
|
1.50 |
2.50 |
3.40 |
4.20 |
0.20 |
0.80 |
3.10 |
4.00 |
Projected pension increase |
|
1.50 |
1.50 |
− |
− |
− |
− |
2.70 |
2.90 |
|
|
Germany |
United States |
Switzerland |
United Kingdom |
||||
|---|---|---|---|---|---|---|---|---|---|
|
|
2016 |
2015 |
2016 |
2015 |
2016 |
2015 |
2016 |
2015 |
Discount rate |
|
2.50 |
2.40 |
4.20 |
3.90 |
0.80 |
1.00 |
4.00 |
3.70 |
Projected pension increase |
|
1.50 |
1.75 |
− |
− |
− |
− |
2.90 |
2.90 |
The assumptions used to determine the defined benefit obligation as of December 31, 2015, are to be used in the 2016 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 scheduled benefit and contribution payments to be made during the year.
The considerable drop in the discount rate due to capital market developments in the first half of 2016 in all relevant countries was primarily responsible for actuarial losses of €3,708 million in the defined benefit obligation. Including the deviation between the actual and standardized return on plan assets, a negative remeasurement occurred in the amount of €3,417 million. This was recognized in other comprehensive income (OCI), taking into account deferred taxes of €1,000 million. This valuation effect was the main reason for the €3,314 million increase in pension provisions.