DHL 2008 Annual Report Download - page 125

Deutsche Post World Net Annual Report 2008
Pension commitments under the new system
 e pension commitment system was restructured in  nancial year .
Starting on  March , newly appointed Board of Management members will receive
pension commitments based on a de ned contribution plan rather than the previous
commitments which were based on  nal salary.
Under the new de ned contribution pension plan, each year the company pays
a uniform amount of   of the annual basic salary into a virtual pension account for
the Board of Management member concerned.  e maximum contribution period is
 years. Interest is paid on the pension capital at the rate applicable to pension provi-
sions recognised for tax purposes (currently   annually) until the pension is drawn
or the Board of Management member leaves the company.  e retirement bene ts are
paid out in a lump sum in the amount of the value accumulated in the pension account.
 e bene ts fall due when the Board of Management member reaches the age of  or
in the case of invalidity or death.  e pension bene ciary may opt to receive a pension
in lieu of a lump-sum payment. If this option is exercised, the capital is converted to a
pension on the basis of the relevant tax base, taking into account the individual data of
the surviving dependents and a future pension increase of  . If the Board of Manage-
ment member leaves the company before the bene ts fall due, the pension account will
be maintained at the balance existing at the time the member le the company.  e
account will no longer accrue interest and no further contributions will be paid.
The new pension system is applicable to Board of Management members
Hermann Ude and Bruce Edwards, who were appointed in .  e pension commit-
ment made to Hermann Ude contains an arrangement guaranteeing him a minimum
bene t in the amount of the bene ts payable to him had his former pension commit-
ment been continued using the assessment basis applicable at the time of his appoint-
ment to the Board of Management.
Pension commitments under the new system: individual breakdown
€
Total
contribution
for 2008
Pension account
balance as
at 31 Dec. 2008
Service cost
for pension obligation
Financial year 2008
Hermann Ude 1) 465,3612) 486,149 133,647
Bruce Edwards 1) 134,063 140,052 137,565
Total 271,212
1) Member of the Board of Management since 4 March 2008.
2) Including starting balance of € 331,298 to replace his previous pension commitment.
Benefi ts of former Board of Management members
Bene ts paid to former members of the Board of Management or their surviving
dependants amounted to  . million (restated prior-year  gure:  . million).  e
de ned bene t obligations  for current pensions calculated under  amount
to  . million (previous year:  . million).
Severance payment complies with Code recommendation
In accordance with the recommendation of No. .. of the German Corporate
Governance Code as amended on  June , the Board of Management contracts
of Hermann Ude and Bruce Edwards contain a provision stipulating that in the event
of premature termination of a Board of Management member’s contract without good
cause, the severance payment may compensate no more than the remaining term of
Corporate Governance
Remuneration Report
121