DHL 2006 Annual Report Download - page 140

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Pension provisions and pension assets by area
Pension provisions and pension assets by area1)
2005 2006
€m Germany UK Other
Deutsche
Postbank
Group Total Germany UK Other
Deutsche
Postbank
Group Total
Pension provisions and other employee
benefits 4,654 299 218 585 5,756 4,524 296 199 1,115 6,134
Pension assets 0 –116 –73 0 –189 0 –122 –74 0 –196
Net pension provisions 4,654 183 145 585 5,567 4,524 174 125 1,115 5,938
1) Restatement due to Exel purchase price allocation, see Note 3.
Actuarial assumptions
e majority of the Group’s dened benet obligations relate to plans in
Germany and the UK. In addition, signicant pension plans are provided in
other euro zone countries, Switzerland and the US. e actuarial measurement
of the main benet plans was based on the following assumptions:
Actuarial assumptions
2005 2006
%Germany UK
Other
euro zone Switzerland US Germany UK
Other
euro zone Switzerland US
Discount rate 4.25 4.70 4.25 2.75 5.75 4.50 5.00 4.50 3.00 5.75
Future salary increase
2.50
to 3.00
4.00
to 4.10
2.00
to 3.50 3.00
3.25
to 4.00
2.50
to 3.00
3.75
to 4.50
2.00
to 4.00 3.00 4.00
Future inflation rate 2.00 2.60 2.00 1.50 2.75 2.00 3.00 2.00 1.50 2.75
For the German Group companies, longevity was calculated using the
mortality tables Richttafeln  G published by Klaus Heubeck. Country-
specic mortality tables were used for the other countries.
e following average expected return on plan assets was used to compute the
expenses for  and .
Computation of expenses for the period
2005 2006
%Germany UK
Other
euro zone Switzerland US Germany UK
Other
euro zone Switzerland US
Average expected return on
plan assets
3.10
to 4.25
6.75
to 7.50
4.25
to 7.00 4.50 8.00
3.00
to 4.25
6.50
to 7.00
4.25
to 6.5 4.25
8.00
to 8.50
e expected return on plan assets was determined by taking into account
current long-term rates of return on bonds (government and corporate) and
then applying to these rates a suitable risk premium for other asset classes
based on historical market returns and current market expectations.
136
Deutsche Post World Net Annual Report 2006