talanx group annual report 2011 en
talanx group annual report 2011 en
talanx group annual report 2011 en
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Nature of risks Notes on the balance<br />
Notes on the balance<br />
Notes on the<br />
sheet – assets<br />
sheet – liabilities<br />
statem<strong>en</strong>t of income<br />
Other information List of shareholdings<br />
(22) Provision for p<strong>en</strong>sions and other post-employm<strong>en</strong>t<br />
b<strong>en</strong>efit obligations<br />
The Group companies normally award their employees p<strong>en</strong>sion commitm<strong>en</strong>ts based on defined<br />
contribution or defined b<strong>en</strong>efit plans. The type of p<strong>en</strong>sion commitm<strong>en</strong>t is giv<strong>en</strong> in accordance with<br />
the relevant p<strong>en</strong>sion plan and <strong>en</strong>compasses retirem<strong>en</strong>t, disability, widows’ and orphans’ b<strong>en</strong>efits.<br />
The p<strong>en</strong>sion <strong>en</strong>titlem<strong>en</strong>t is dep<strong>en</strong>d<strong>en</strong>t on l<strong>en</strong>gth of service and salary. In terms of amounts paid, the<br />
majority of commitm<strong>en</strong>ts are based on defined b<strong>en</strong>efit p<strong>en</strong>sion plans.<br />
Under defined b<strong>en</strong>efit plans the p<strong>en</strong>sion b<strong>en</strong>eficiary is promised a specific b<strong>en</strong>efit; in contrast to<br />
defined contribution plans, the exp<strong>en</strong>ditures to be incurred by the company on the basis of the<br />
b<strong>en</strong>efit commitm<strong>en</strong>ts are not fixed from the outset. The commitm<strong>en</strong>ts to employees in Germany<br />
predominantly comprise commitm<strong>en</strong>ts funded directly by the company as well as those established<br />
via HDI Unterstützungskasse e. V. Due p<strong>en</strong>sion b<strong>en</strong>efits make up more than half of the<br />
projected b<strong>en</strong>efit obligations.<br />
In addition, employees have an opportunity to accumulate further old-age provision by way of deferred<br />
comp<strong>en</strong>sation through membership of, inter alia, HDI-Gerling Leb<strong>en</strong>sversicherung AG, neue<br />
leb<strong>en</strong> Leb<strong>en</strong>sversicherung AG, HDI-Gerling P<strong>en</strong>sionskasse AG, PB P<strong>en</strong>sionsfonds AG, and also via a<br />
reinsured provid<strong>en</strong>t fund. Employees of the former Gerling Group also have the option of obtaining<br />
p<strong>en</strong>sion commitm<strong>en</strong>ts through deferred comp<strong>en</strong>sation with Gerling Versorgungskasse VVaG. These<br />
are usually defined contribution b<strong>en</strong>efit plans for which p<strong>en</strong>sion provisions are not recognised.<br />
Provisions for p<strong>en</strong>sions are established in accordance with IAS 19 “Employee B<strong>en</strong>efits” using the<br />
Projected Unit Credit Method. They are established in accordance with actuarial principles and<br />
make allowance for the l<strong>en</strong>gth of service and estimated rate of comp<strong>en</strong>sation increase of p<strong>en</strong>sion<br />
b<strong>en</strong>eficiaries. B<strong>en</strong>efit <strong>en</strong>titlem<strong>en</strong>ts are discounted using interest rates defined according to the<br />
part portfolios of curr<strong>en</strong>t or former employees and of the b<strong>en</strong>eficiaries, differ<strong>en</strong>tiated by respective<br />
duration. The bl<strong>en</strong>ded rate shown below is a weighted average of the respective pres<strong>en</strong>t values.<br />
A new feature of the am<strong>en</strong>ded IAS 19 is the discontinuation of the so-called corridor method (please<br />
see our remarks in the section “G<strong>en</strong>eral accounting principles and application of IFRS”). Taking the<br />
discontinuation of the corridor method into account (<strong>2011</strong> and the preceding year), and with actuarial<br />
gains and losses thus being recognised directly in equity, the change would have resulted in a<br />
reduction in equity of EUR 53 (116) million after deduction of deferred taxes and deferred premium<br />
refunds.<br />
Talanx Group. Annual Report <strong>2011</strong><br />
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