english - About Heraeus

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Pension Regulation II 2001, which was introduced as part of the bargaining agreement
dated May 14, 2001, enables participating employees to purchase additional pension
benefits through a contribution-based benefit plan by means of voluntary deferred compensation.
The pension commitments in accordance with the pension regulations from
2001 are covered by means of investments in securities funds.
Both Pension Regulation I and Pension Regulation II have been developed further since
their introduction and adapted to changing general economic conditions. The reorganization
of these pension plans implemented with effect as of January 1, 2010, related in particular
to the use of a demographic contribution to tariffs for pension schemes, as well as the
adjustment of the guaranteed interest on pension contributions.
In addition, executives and managers are granted individual commitments.
Employees in some of the companies in other countries also have a claim to retirement
pensions, although in some cases the regulations for these pensions are very different.
Employees in the USA are also entitled to medical insurance. The level of these entitlements
depends mainly on the length of employment and the remuneration of the em -
ployees. The foreign pension commitments are predominantly financed via external funds.
Pension provisions are recognized and measured using the projected unit credit method
according to IAS 19. This method not only takes into account the pension benefits and
benefit entitlements known as of the closing date but also increases in salaries and pension
benefits to be expected in the future. Furthermore, the funds held by the German
companies of the Heraeus Group meet the requirements of plan assets (contractual trust
arrangement) and are offset against the pension provisions.
By exercising the option provided by IAS 19.93 A, actuarial gains and losses resulting
from changes in the assumptions and from deviations of the assumptions from the actual
facts are recognized directly in equity – after taking into account deferred taxes – in the
period in which they were incurred. Gains and losses recognized in equity are shown separately
in the statement of comprehensive income.