DHL 2014 Annual Report Download - page 132

Pensionable income consists of the annual base salary (xed annual remuneration)
computed on the basis of the average salary over the last twelve calendar months of
employment. Members of the Board of Management attain a pension level of   aer
ve years of service. e maximum pension level of   is attained aer ten years of
service. Subsequent pension benets increase or decrease to reect changes in the con-
sumer price index in Germany.
. Individual breakdown of pension commitments under the previous system
Pension commitments
Pension
level on
31 Dec. 2013
%
Pension
level on
31 Dec. 2014
%
Maximum
pension level
%
Present value
 as at
31 Dec. 2013
€
Present value
 as at
31 Dec. 2014
€
Dr Frank Appel, Chairman 50 50 50 11,083,250 17,206,903
Jürgen Gerdes 25 25 50 4,749,766 7,248,450
Total 15,833,016 24,455,353
e increase in the present value  as at  December  compared with  De-
cember  was due primarily to the signicant reduction in the  discount rate.
Since the pension commitments under the old system normally involve payment of a
pension and thus a provision of benets over a very long period, they are – by contrast
with lump-sum commitments – subject to a high degree of interest rate risk, which is
reected directly in the amount of the . For that reason, around   of the 
increase is attributable to the interest rate risk.
Pension commitments under the new system
Since  March , newly appointed Board of Management members have received
pension commitments based upon a dened contribution plan rather than the previous
commitments, which were based upon the nal salary. Under the dened contribution
pension plan, the company credits an annual amount of   of the annual base salary
to a virtual pension account for the Board of Management member concerned. e
maximum contribution period is  years. e pension capital accrues interest at an
annual rate equal to the “iBoxx Corporates  + Annual Yield” rate, or at an annual
rate of .  at minimum, and will continue to do so until the pension benets fall due.
e pension 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 whilst in oce. In the event
of benets falling due, the pension beneciary may opt to receive an annuity payment
in lieu of a lump sum payment. If this option is exercised, the capital is converted to an
annuity payment, taking into account the average “iBoxx Corporates  + Annual
Yield” for the past ten full calendar years as well as the individual data of the surviving
dependents and a future pension increase of   per year.
Deutsche Post  Group —  Annual Report
126