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Defined Benefit Plans The defined benefit obligation comprise unfunded and funded plans. Of these plans approxi- mately 96 % relate to obligations in Germany, the Netherlands, and the U.S. as follows: Dec. 31, 2014 Dec. 31, 2015 Germany 238,288 235,440 The Netherlands 21,565 20,129 U.S. 18,898 19,715 Other 9,792 9,988 Defined benefit obligation 288,543 285,272 Domestic plans: Certain executives located in Germany are entitled to post-employment bene- fits (“Ruhegeldendbetrag”). The benefit is agreed individually and is paid out as a life-time pension upon reaching the age of 65, upon early retirement in accordance with statutory retirement provisions or in case of disability. The plan also covers surviving dependants’ pension. All other German employees with an employment start date before January 1, 2010, participate in a post-employment benefit plan which also covers old age, disability and surviving dependants’ pensions. The plan is basically based on a benchmark model consider- ing length of service and salary with life-time pension payments beginning at age 65. Bene- fits granted from January 1, 1999 include a fixed annual increase of 1 % of the benefit; plans before that date grant compensation for inflation in accordance with section16 of the German Company Pension Laws (BetrAVG). For ALTANA, the risk is mainly represented by the development of life expectancy and inflation since the obligations resulting from these plans represent life-time pension payments. All employees with an employment start date after December 31, 2009 are in a plan which is based on a capital commitment (ALTANA Vorsorgekapital / AVK). ALTANA pays the employer’s contributions into external investment funds until the benefits are paid out. ALTANA also offers an employee-funded plan that grants the employees the right to have part of their earnings paid into a company pension scheme (AltersvorsorgeAktiv mit ALTANA / AAA) which are increased by employer’s contributions, as necessary. For this plan too, the contri- butions are invested in external investment funds until pay-out (cf. AVK). The two post-em- ployment benefit plans at ALTANA, AVK and AAA basically have the same features. ALTANA offers two models: a fixed income based model, where the Company guarantees a minimum interest yield on the contributions paid-in, corresponding to the interest rate of life insur- ance contracts of 1.25 % as of the reporting date, and an equity-based model, where ALTANA guarantees the payment contributions made, but without any additional interest guaran- tee. Obligations under the AVK and AAA plans are linked to the development of the fund assets, which results in a reduction of the overall business risk exposure. The remaining risk ALTANA is exposed to is represented by the risk that the performance of the funds does not cover the guaranteed minimum interest yield or the capital commitment. 24. Employee Benefit Obligations Group Management Report Corporate Governance Environment, Safety, and Corporate Social Responsibility Consolidated Financial Statements 117


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