Page 47 - Annual Report KELAG Group 2018
P. 47

Discount rate       0.75%            -6.41%           7.17%
                                       Salary increase     0.50%            4.63%            -4.34%
                                       Retirement age      One year         0.27%            -0.27%

                                       Pensions                                        10.06             9.85
                                       Defined benefit plans                           17.90            17.65
                                       Pension-related obligations                     14.88            14.96
                                       Severance payment obligations                    9.53             9.02
                                       Long-service awards                              8.90             8.74
                                       “Altersteilzeit” (special phased retirement scheme)   3.51        2.02

                                      The cost of defined benefit plans and the present value of the pension obligation are determined
                                      using actuarial valuations. An actuarial valuation involves making various assumptions that can
                                      differ from actual developments in the future. These include the determination of the discount
                                      rate, future salary increases, mortality rates and future pension increases. Due to the complexity
                                      of  the  valuation,  the  underlying  assumptions,  and  its  long-term  nature,  a  defined  benefit
                                      obligation is highly sensitive to changes in these assumptions. All assumptions are reviewed at
                                      each reporting date.

                                      The  provision  for  long-service  awards  is  recognised  in  accordance  with  the  same  actuarial
                                      assumptions as the provision for severance obligations. With the exception of the discount rate,
                                      these assumptions also apply for the recognition of phased retirement obligations. Due to their
                                      short  duration,  the  phased  retirement  obligations  are  discounted  at  a  rate  of  0.30%  (prior
                                      year: -0.03%).
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