Merck 2014 Annual Report Download - page 222

217CONSOLIDATED FINANCIAL STATEMENTS → Notes to the Group accounts
The defined benefit obligations of the Group were based on the
following types of benefits provided by the respective plan:
Germany Other countries Group
Present value of defined benefit obligations in € million Dec. 31, 2014 Dec. 31, 2014 Dec. 31, 2014
Benefit based on final salary
Annuity 2,542.3 462.5 3,004.8
Lump sum – 98.0 98.0
Installments 1.2 – 1.2
Benefit not based on final salary
Annuity 141.9 506.9 648.8
Lump sum 7.1 40.1 47.2
Medical plan – 12.7 12.7
2,692.5 1,120.2 3,812.7
The main benefit rules are as follows:
MerckKGaA, Darmstadt, Germany, and AB Allgemeine Pensions
GmbH&Co.KG accounted for €2,434.0 million (2013: €1,670.6
million) of the defined benefit obligations and €1,098.1 million
(2013: €1,052.6 million) of the plan assets. The benefits comprise
old-age, disability and surviving dependent pensions. On the one
hand, these obligations are based on benefit rules comprising
benefit commitments dependent upon years of service and final
salary from which newly hired employees have been excluded. On
the other hand, the benefit rules applicable to employees newly
hired since January1, 2005 comprise a direct commitment in the
form of a defined contribution pension plan. The benefit entitle-
ment results from the cumulative total of annually determined
pension components that are calculated on the basis of a defined
benefit expense and an age-dependent annuity table. Statutory
minimum funding obligations do not exist.
The Biopharmaceuticals division’s pension fund in Switzerland
accounted for €402.6 million (2013: €314.8 million) of the de-
fined benefit obligations and €363.5 million (2013: €324.9 mil-
lion) of the plan assets. Of this amount, €10.5 million could not
be recognized in 2013 due to effects of the asset ceiling according
to IAS19.64. These obligations are based on the granting of old-
age, disability and surviving dependents benefits, which include
the legally re
quired benefits. Both employer and employee contri-
butions are paid into the pension fund. Statutory minimum fund-
ing obligations exist.
The Pension Scheme of the Group in the United Kingdom
accounted for €376.5 million (2013: €320.1 million) of the defined
benefit obligations and €343.6 million (2013: €293.1 million) of
the plan assets. These obligations result from a benefit plan which
is based on years of service and final salary and was closed to
newly hired employees in 2006. The agreed benefits comprise
old-age, disability and surviving dependent benefits. The employer
and the employees make contributions to the plan. Statutory min-
imum funding obligations also exist in the United Kingdom.