14 – Provisions for pensions
|
|
Germany |
United States |
Switzerland |
United Kingdom |
||||
|---|---|---|---|---|---|---|---|---|---|
|
|
June 30, 2018 |
Dec. 31, 2017 |
June 30, 2018 |
Dec. 31, 2017 |
June 30, 2018 |
Dec. 31, 2017 |
June 30, 2018 |
Dec. 31, 2017 |
Discount rate |
|
2.00 |
1.90 |
4.10 |
3.60 |
0.80 |
0.50 |
2.80 |
2.60 |
Projected pension increase |
|
1.50 |
1.50 |
− |
− |
− |
− |
3.10 |
3.10 |
|
|
Germany |
United States |
Switzerland |
United Kingdom |
||||
|---|---|---|---|---|---|---|---|---|---|
|
|
2018 |
2017 |
2018 |
2017 |
2018 |
2017 |
2018 |
2017 |
Discount rate |
|
1.90 |
2.50 |
3.60 |
4.20 |
0.50 |
0.80 |
2.60 |
4.00 |
Projected pension increase |
|
1.50 |
1.50 |
− |
− |
− |
− |
3.10 |
2.90 |
The assumptions used to determine the defined benefit obligation as of December 31, 2017, are used in the 2018 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.
The rise in the discount rate in all currency zones due to capital market developments in the first half of 2018 was primarily responsible for actuarial gains of €621 million in the defined benefit obligation. Including the deviation between the actual return on plan assets and the standardized return on plan assets, positive remeasurement effects totaled €237 million. These were recognized in other comprehensive income (OCI), taking into account deferred taxes of €81 million. Overall, pension provisions declined by €217 million compared with December 31, 2017.