DHL 2008 Annual Report Download - page 147

Deutsche Post World Net Annual Report 2008
Consolidated Financial Statements
Notes
a recognised option pricing model in accordance with  .  e
amount determined for  that will probably not lapse is recog-
nised in income under sta costs to re ect the services rendered as
consideration during the vesting period (lock-up period). A provi-
sion is recognised for the same amount.
Pension obligations
In a number of countries, the Group maintains de ned
bene t pension plans based on the pensionable compensation and
length of service of employees. Most of these bene t plans are funded
through external pension funds. Provisions for pensions are meas-
ured using the projected unit credit method prescribed by   for
de ned bene t plans. In accordance with  ., actuarial gains
and losses are recognised only to the extent that they exceed the
greater of   of the present value of the obligations and of the fair
value of plan assets.  e excess is allocated over the expected remain-
ing working lives of active employees and recognised in income.  e
interest component of pension expenses is reported under net  nance
cos ts /net  nancial income.
 e Group also contributes to a number of de ned contribu-
tion plans. Contributions to these de ned contribution pension plans
are recognised as sta costs when they are due. In , employer
contributions amounting to   million were paid in respect of
these plans (previous year:   million).
Pension plans for civil servant employees in Germany
In addition to the state pension system operated by the stat-
utory pension insurance funds, to which contributions for hourly
workers and salaried employees are remitted in the form of non-
wage costs, Deutsche Post  and Deutsche Postbank  pay contri-
butions to de ned contribution plans in accordance with statutory
provisions.
Until , Deutsche Post  and Deutsche Postbank 
each operated a separate pension fund for their active and former
civil servant employees.  ese funds were merged with the pension
fund of Deutsche Telekom  to form the joint special pension fund
Bundes-Pensions-Service für Post und Telekommunikation e. V.
(-).
Under the provisions of the Gesetz zur Neuordnung des Post-
wesens und der Telekommunikation (PTNeuOG – German posts
and telecommunications reorganisation act), Deutsche Post  and
Deutsche Postbank  make bene t and assistance payments via a
special pension fund to retired employees or their surviving depend-
ants who are entitled to bene ts on the basis of a civil service appoint-
ment.  e amount of the payment obligations of Deutsche Post 
and Deutsche Postbank  is governed by Section  of the Post-
personalrechtsgesetz (Deutsche Bundespost former employees act).
Since , both companies have been legally obliged to pay into this
special pension fund an annual contribution of   of the pensionable
gross compensation of active civil servants and the notional pension-
able gross compensation of civil servants on leave of absence. In the
year under review, Deutsche Post  paid contributions of   mil-
lion (previous year:   million) and Deutsche Postbank  paid
contributions of   million (previous year:   million) to Bundes-
Pensions-Service für Post und Telekommunikation e. V.
Under the PTNeuOG, the federal government takes appro-
priate measures to make good the di erence between the current
payment obligations of the special pension fund on the one hand,
and the current contributions of Deutsche Post  and Deutsche
Postbank , or the return on assets on the other, and guarantees
that the special pension fund is able at all times to meet the obliga-
tions it has assumed in respect of its funding companies. Where the
federal government makes payments to the special pension fund
under the terms of this guarantee, it cannot claim reimbursement
from Deutsche Post  and Deutsche Postbank .
Pension plans for hourly workers
and salaried employees
 e bene t obligations for the Group’s hourly workers and
salaried employees relate primarily to pension obligations in Ger-
many and signi cant funded obligations in the , the Netherlands,
Switzerland and the .  ere are various commitments to individ-
ual groups of employees.  e commitments usually depend on length
of service and  nal salary (e. g. the ), are based on the amount of
contributions paid (e. g. Switzerland), or take the form of a  at-rate
contribution system (e. g. Germany).  e obligations for de ned ben-
e t plans are measured using the projected unit credit method pre-
scribed by  . Future obligations are determined using actuarial
principles and on the basis of actuarial and economic assumptions.
 e expected bene ts are built up over the entire length of service of
the employees, taking into account changes in key parameters.
The majority of the defined benefit plans in Germany
relate to Deutsche Post .  e de ned bene t obligations of the
Deutsche Postbank Group are almost entirely related to pension
plans in Germany.
Other provisions
Other provisions are recognised for all legal or constructive
obligations to third parties existing at the balance sheet date that have
arisen as a result of past events, are expected to result in an out ow
of future economic bene ts and whose amount can be measured
reliably.  ey represent uncertain obligations that are carried at the
best estimate of the expenditure required to settle the obligation.
Provisions with more than one year to maturity are discounted at
market rates of interest that re ect the risk, region and time until
settlement of the obligation.  e table below shows a sample of the
interest rates applied:
Region 1 to 6 years More than 6 years
Euro zone 5.25 % 5.50 %
UK 5.50 % 5.75 %
Switzerland 4.00 % 4.25 %
Japan 2.00 % 2.50 %
Latin America and Africa 18.75 % 19.50 %
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