english - About Heraeus
english - About Heraeus
english - About Heraeus
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Provisions for pensions and similar obligations<br />
Under the company retirement plan, employees of the consolidated companies are entitled<br />
to benefits from defined benefit plans and defined contribution plans.<br />
In the case of defined contribution plans, the company contributes to publicly or privately<br />
administered pension plans on a statutory, contractual, or voluntary basis. Once the contributions<br />
have been paid, the company has no further payment obligations.<br />
Defined benefit pension plans generally cover commitments for old age, disability, and<br />
widows’ and orphans’ pensions. The Group’s payments generally depend on the length of<br />
employment and the remuneration of the employees and are defined in various pension<br />
arrangements. Defined benefit pension plans at <strong>Heraeus</strong> are financed both by provisions<br />
and by funds.<br />
Defined benefit plans are found primarily in German companies. Domestically, there are<br />
three different overall pension commitments:<br />
For employees who joined the company before January 1, 1988, the Pension Regulation<br />
dated October 24, 1979 will apply. This is a pension commitment by the employer that is<br />
not dependent on salary and is financed by the employer. The pension payment increases<br />
by a certain percentage of pensionable earnings for each applicable year of service.<br />
The pension claims of employees who joined the company after January 1, 1988, are<br />
regulated in Pension Regulation I 2001 dated May 14, 2001 and are composed of an<br />
employer-financed payment guarantee based on contributions. The pension contributions<br />
paid within this commitment are converted into “pension modules” by means of an actuarial<br />
calculation. These modules are then credited to an individual pension account for each<br />
beneficiary. The level of the pension contribution depends on the pensionable earnings<br />
of each employee.<br />
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