Mercedes 2012 Annual Report Download - page 223

232
22. Pensions and similar obligations
Table  7.50 shows how provisions for pension benefit plans
and similar obligations are comprised.
Defined benefit pension plans. Provisions for pension
benefits were solely made for defined entitlements to active
or former employees. Under a defined benefit pension plan,
beneficiaries obtain an entitlement to a defined benefit when
retirement occurs. Daimler primarily provides pension benefits
with defined entitlements to its employees. The majority of
the active employees are entitled to pay-related defined pension
benefits. Under these plans, employees earn benefits for
each year of service. The benefits earned per year of service
are dependent on the salary level and age of the respective
employees. Principally, the defined benefit pension plans pro-
vided by Daimler vary according to the economic, tax and
legal circumstances of the country concerned. Generally, defined
benefit pension plans also provide benefits for invalidity and
death. The defined benefit obligations are funded in large part
with assets in pension funds.
Defined contribution pension plans. To a minor degree,
Daimler also maintains defined contribution plans. Under these
plans, Daimler makes defined contributions to external
insurances or funds. Basically, there are no further contractual
obligations or risks for Daimler in excess of the defined con-
tributions. The Group also pays contributions to governmental
pension schemes. In 2012, the total cost from payments
made under defined contribution plans amounted to €1.4 billion
(2011: €1.3 billion). These payments are primarily related
to governmental pension plans.
Other post-employment benefits. Certain foreign subsidiaries
of Daimler, mainly in the United States, provide their employ-
ees with post-employment health care benefits with defined
entitlements, which have to be accounted for as defined benefit
plans. These obligations are funded to a small extent through
reimbursement rights and plan assets. Table  7.51 provides key
data for other post-employment benefits.
Details of defined pension benefit plans
Funded status. The following information with respect
to the funded status of the Group’s defined pension benefit
plans is presented separately for German plans and non-
German plans.
The development of the funded status since 2008 is presented
in table  7.52.
Table  7.53 shows the reconciliation of the funded status
to the net amounts recognized in the consolidated statement
of financial position for defined benefit pension plans.
Compositions of provisions for pension benefit plans
and similar obligations
At December 31,
2012 2011
In millions of euros
Provision for pension benefits 1,911 2,151
Provision for other post-employment benefits 1,124 1,033
3,035 3,184
7. 5 0
Key data for other post-employment benefits
2012 2011
In millions of euros
Present value of defined benefit obligations 1,520 1,355
Fair value of plan assets and
reimbursement rights
168
153
Funded status -1,352 -1,202
Net periodic cost/income for
other post-employment benefits
-133
-104
7. 51