Mercedes 2013 Annual Report Download - page 230

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Defined contribution pension plans
Under defined contribution pension plans, Daimler makes
defined contributions to external insurance policies or invest-
ment funds. There are fundamentally no further contractual
obligations or risks for Daimler in excess of the defined contribu-
tions. The Group also pays contributions to governmental
pension schemes. In 2013, the total cost from payments made
under defined contribution plans amounted to €1.3 billion
(2012: €1.4 billion). These payments are primarily related to
governmental pension plans.
Multi-employer plans. Daimler participates in some collectively
bargained defined benefit pension plans maintained by more
than one employer. The Group accounts for several of these plans
in its consolidated financial statements as defined contribution
plans because the information required to use defined benefit
accounting is not available in a timely manner or in sufficient
detail. The Group cannot exercise direct control over such plans
and the plan trustees have no legal obligation to share infor-
mation directly with participating employers. Higher contributions
by the Group to such a pension plan could be required in par-
ticular when an underfunded status exceeds a specific level.
Exit from such a plan can lead to the companies involved having
to offset the potential future shortfall relating to their share
of the plan. Furthermore, the possibility exists that Daimler can be
liable for other participants’ obligations. As of December 31,
2013, the Group does not anticipate significant costs from the
existing collective plans of multiple employers; no exit from
any of these plans is intended.
Other post-employment benefits
Certain foreign subsidiaries of Daimler, mainly in the United
States, provide their employees 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  F.63 provides key data for other post-
employment benefits.
Significant risks for other post-employment benefits (medical
care) relate to rising healthcare costs and lower contributions
to those costs from the public sector. In addition, these
plans are subject to the usual risks for defined benefit plans,
in particular the risk of changes in discount rates.
Key data for other post-employment benefits
2013 2012
In millions of euros
Present value of defined benefit obligations 1,258 1,520
Fair value of plan assets and
reimbursement rights
121
168
Funded status -1,137 -1,352
Net periodic cost for other
post-employment benefits
-92
-122
F.63