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F | Consolidated Financial Statements | Notes to the Consolidated Financial Statements
Major parts of pension obligations in Germany relating to defined
benefit pension plans are funded by assets invested in long-
term outsourced funds. Since the year 1999, a contractual trust
arrangement (CTA) has existed between Daimler AG and the
Daimler Pension Trust. The Daimler Pension Trust acts as a collat-
eral trust fund. With the provision of assets for obligations
arising from defined benefit pension plans of other companies
of the Group and the introduction of pension plans based
on the lifecycle model described above, additional CTAs were
concluded in 2012 between the collateral trust fund and
the respective companies of the Group.
In Germany, there are no statutory or regulatory minimum
funding requirements.
Non-German plans. Significant plans exist primarily
in the United States and Japan. They comprise plans relating
to final salaries as well as plans relating to salary components.
The major part of the obligations outside Germany from
defined benefit pension plans are funded by assets outplaced
into long-term investment funds.
22. Pensions and similar obligations
Table  F.55 shows how provisions for pension benefit
plans and similar obligations are comprised.
At the Daimler Group, country-specific and defined benefit
pension obligations exist as well as, to a smaller extent,
defined contribution pension obligations. In addition, health-
care benefit obligations are recognized outside Germany.
Defined benefit pension plans
Provisions for pension benefits are made for defined entitle-
ments to active or former employees of the Daimler Group and
their survivors. Principally, the defined benefit pension plans
provided by Daimler vary according to the economic, tax and
legal circumstances of the country concerned. Generally,
the defined benefit pension plans also provide benefits in the
case of invalidity and death.
The Group’s main German and non-German pension plans
are described below.
German plans. Most employees in Germany have defined
benefit pension plans; most of the pension plans for the active
workforce are based on individual retirement benefit accounts,
for which the company makes annual contributions. The amount
of the contributions for employees paid according to wage-
tariff agreements depends on the tariff classification in the
respective year, and for executives it depends on their res-
pective income. For the commitments to retirement benefits
made until 2011, the contributions continue to be converted
into capital components and credited to the individual pension
account with the application of fixed factors related to each
employee’s age. The conversion factors include a fixed value
increase. The pension plans were newly structured for new
entrants in 2011. New entrants now benefit from value increases
of the contributions through a fund investment in a special
lifecycle model. The company guarantees at a minimum the value
of the contributions paid in. Pension payments are made
either as a life annuity, as twelve annual installments, or a single
lump sum.
In addition, previously concluded defined benefit plans exist,
which primarily depend on employees’ wage-tariff classification
upon transition into the benefit phase and which foresee
a life annuity.
As well as the employer-financed pension plans granted
by German companies, the employees of some companies
are also offered various earnings-conversion models.
Compositions of provisions for pension benefit plans
and similar obligations
December 31,
2013 2012
In millions of euros
Provision for pension benefits 8,624 9,788
Provision for other post-employment benefits 1,245 1,511
9,869 11,299
F.55