15 – Provisions for Pensions

The assumptions used to determine the defined benefit obligation as of December 31, 2021, are used in the 2022 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.

Increases in the discount rates in all relevant currency zones led to actuarial gains on pension obligations totaling €6,825 million in the first half of 2022. Investments accounted for using the equity method reported actuarial gains of €119 million. Adjustment effects from the increase in long-term inflation assumptions in Germany from 1.60% to 2.00% increased obligations by around €1,060 million and partially compensated for the effect of higher interest rates in Germany. Including the deviation between the actual return on plan assets and the standardized return on plan assets, positive remeasurement effects totaled €3,664 million. These were recognized in other comprehensive income (OCI), taking into account deferred taxes of €1,114 million. Overall, pension provisions declined by €3,058 million compared with December 31, 2021. Taking into account the asset ceiling, defined benefit assets decreased by €193 million in the first half of 2022.