BMW 2015 Annual Report Download - page 141

141 GROUP FINANCIAL STATEMENTS
follow a linear pattern, all estimates made on the basis
of the specified sensitivities have to be made subject to
this restriction. The calculation of sensitivities using
ranges other than those specified could result in a non-
proportional changes in the defined benefit obligation.
The defined benefit obligation amounted to € 19,926 mil-
lion at 31 December 2015.
The weighted duration of all pension obligations in
Ger-
many, the UK and other countries (based on present values
of the defined benefit obligation) developed as follows:
The sensitivity analysis provided below shows the ex-
tent
to which – based on an appropriate review – the
defined benefit obligation would have been affected by
changes in the relevant assumptions that were possible
at the end of the reporting period, if the other assump-
tions used in the calculation were kept constant. It is
only possible, however, to aggregate sensitivities to a
limited extent. Since the change in obligations does not
In the UK, the sensitivity analysis for the pension level
trend also takes account of restrictions due to caps and
floors.
structured to coincide with the timing of pension pay-
ments and the expected pattern of pension obligations.
In their own way, each of these measures helps to re-
duce fluctuations in pension funding shortfalls.
Most of the BMW Group’s pension assets are adminis-
tered separately and kept legally segregated from
company assets using trust fund arrangements. As a
consequence, the level of funds required to finance
pension payments out of operations will be substan-
tially reduced in the future, since most of the Group’s
pension obligations are settled out of the assets of
pension funds / trust fund arrangements.
The defined benefit obligation relates to current em-
ployees, former employees with vested benefits and
pensioners as follows:
31 December Germany United Kingdom Other
in € million 2015 2014 2015 2014 2015 2014
Current employees 6,114 6,495 2,183 2,295 1,038 1,003
Pensioners 2,635 2,650 4,537 4,208 231 212
Former employees with vested benefits 466 491 2,607 2,996 115 112
Defined benefit obligation 9,215 9,636 9,327 9,499 1,384 1,327
31 December Germany United Kingdom Other
in years 2015 2014 2015 2014 2015 2014
Weighted duration of all pension obligations 20.5 21.4 19.2 19.9 18.4 19.2
31 December Change in defined benefit obligation
2015 2014
in € million in % in € million in %
Discount rate increase of 0.75 % – 2,577 – 12.9 – 2,888 – 14.1
decrease of 0.75 % 3,253 16.3 3,675 18.0
Pension level trend increase of 0.25 % 655 3.3 727 3.6
decrease of 0.25 % – 610 – 3.1 – 679 – 3.3
Average life expectancy increase of 1 year 632 3.2 703 3.4
decrease of 1 year – 633 – 3.2 – 700 – 3.4
Pension entitlement trend increase of 0.25 % 134 0.7 152 0.7
decrease of 0.25 % – 128 – 0.6 – 146 – 0.7