BMW 2003 Annual Report Download - page 96
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95
Pension provisions relating to pension plans in
other countries amounted to euro 122 million (2002:
euro107 million). This includes euro 34 million
(2002: euro 32 million) relating to externally funded
plans.
The level of the pension obligations differs de-
pending on the pension system applicable in each
country. Since the state pension system in Great
The actuarial losses, which led to an increase in the
present value of pension entitlements in the financial
year 2003, resulted from changes in the discount
factors and assumptions about inflation and mortal-
ities used for the purposes of the actuarial computa-
tion. The actual income from pension fund assets in
the United Kingdom, amounting to euro 394 million,
exceeded the expected return of euro 239 million
by euro155 million, which is shown above as actuarial
gains.
Britain only provides a basic fixed amount benefit,
retirement benefits are largely organised in the form
of company pensions and arrangements financed
by the individual. The pension benefits in the United
Kingdom therefore contain contributions made by
the employee.
The net obligation from pension plans in
the United Kingdom changed as follows:
Actuarial losses in excess of a corridor of 10%
of the defined benefit obligations amount to euro
321 million (2002: euro 119 million). They are re-
quired to be recognised as income or expenses over
the average remaining working lives of the relevant
employees. These losses will result in additional
expense in the financial year 2004 of euro 23 million
in the United Kingdom, euro 1 million in the USA and
euro 1 million in other countries. The current short-
fall in Germany is attributable to the reduction in the
in euro million Net present Fair value Net
value of of fund obligation
pension benefits assets
1 January 2003 5,329 – 4,722 607
Current service cost 48 – 48
Expense from reversing the discounting of pension obligations 273 – 273
Expected return on plan assets (–) – – 239 – 239
Employer contributions – – 111 – 111
Benefits paid – 255 255 0
Actuarial gains (–) and losses (+) 441 – 155 286
Translation differences and other changes – 272 228 – 44
31 December 2003 5,564 – 4,744 820