26. Provisions for pensions and similar obligations


Changes in the carrying amount

31/12/2014

31/12/2013

in € thousand

 

 

Pension provisions

432,407

391,952

Provision for termination benefits

179,263

194,805

Total

611,670

586,757

in € thousand

2014

2013

At 1/1

586,757

566,620

Change in basis of consolidation

0

0

Changes due to currency translation

–10

–11

Withdrawal for payments

–50,397

–54,736

Expenditure in the financial year

35,400

56,853

Disposals (including disposals from consolidated group)

–6,122

–15,069

Actuarial gains and losses not recognised in profit or loss

46,042

33,100

of which based on demographic assumptions

–3

265

of which based on financial assumptions

44,799

22,532

of which based on experience assumptions

1,246

10,302

At 31/12

611,670

586,757

Weighted average duration

Pension funds

Pensions

Termination benefits

in years

30.2

13.7

8.4

Present value of obligations

2014

2013

in € thousand

 

 

At 1/1

649,573

630,834

Current service cost

23,412

52,350

Interest expense

17,195

18,265

Payments

–55,856

–69,805

Past service cost

4,737

0

Disposals (including disposals from consolidated group)

–6,122

–15,069

Actuarial gains and losses not recognised in profit or loss

50,225

32,997

of which based on demographic assumptions

‑3

10,302

of which based on financial assumptions

48,981

265

of which based on experience assumptions

1,246

22,429

At 31/12

683,162

649,573

Sensitivity analysis 2014

Pension funds

Pensions

Termination benefits

Figures in per cent

 

 

 

Remaining life expectancy

 

 

 

Change in DBO (+1 year)

2.9

4.4

 

Change in DBO (–1 year)

–3.2

–4.7

 

Discount rate

 

 

 

Change in DBO (+1%)

–24.6

–11.6

–8.0

Change in DBO (–1%)

35.3

14.5

9.1

Rate of increase for future salary delta

 

 

 

Change in DBO (+0.75%)

4.0

0.4

6.6

Change in DBO (–0.75%)

–3.8

–0.4

–6.1

Rate of increase for future pensions

 

 

 

Change in DBO (+0.25%)

4.2

2.9

 

Change in DBO (–0.25%)

–4.0

–2.8

 

Sensitivity analysis 2013

Pension funds

Pensions

Termination benefits

Figures in per cent

 

 

 

Remaining life expectancy

 

 

 

Change in DBO (+1 year)

2.8

3.9

 

Change in DBO (–1 year)

–3.0

–4.1

 

Discount rate

 

 

 

Change in DBO (+1%)

–24.0

–11.5

–8.1

Change in DBO (–1%)

34.2

14.3

9.2

Rate of increase for future salary delta

 

 

 

Change in DBO (+0.75%)

4.0

0.4

6.7

Change in DBO (–0.75%)

–3.7

–0.4

–6.2

Rate of increase for future pensions

 

 

 

Change in DBO (+0.25%)

4.1

2.8

 

Change in DBO (–0.25%)

–3.9

–2.7

 

Final pension funds contribution:

Board members, special policyholders and active employees in Austria who meet the criteria for inclusion are subject to a defined contribution pension fund scheme. The beneficiaries are entitled to a final pension fund contribution. The works council agreement states the extent to which a final pension fund contribution is provided to the beneficiary’s individual assurance cover account in the event of a transfer to the old-age pension or of an incapacity to work or the death as a participant.

There are individual contractual pension obligations, pension allowances in accordance with association recommendations and administrative pensions. Individuals who have an individual contractual obligation can generally claim a pension when they reach the age of 65, but not before the age of 62, and in the event of an inability to work. The amount of the pension generally depends on the number of their years of service and their last salary before leaving their active employment. In the event of death, the spouse of the individual entitled to the claim receives a pension at 60%, 50% or 40% depending on the policy. The pensions are suspended for any period in which a termination benefit is paid and their value is generally guaranteed.

The defined contribution plan is financed completely by Uniqa. The pensions are financed through provisions that are based on individual policies or on the association recommendations. For the final pension contribution, the financing is carried out over a pension fund. The financing is specified in the business plan, in the works council agreement and in the pension fund contract.

Termination benefit entitlements:

If the employment lasted three years without interruption, the employee is entitled to termination benefits when the employment is terminated, unless the employee quits, leaves without an important reason or is guilty of something resulting in early dismissal. The amount is double the salary owed to the employee in the last month of the employee relationship and increases after five years of employment to three times, after ten years of employment to four times, after fifteen years of employment to six times, after twenty years of employment to nine times and after twenty-five years of employment to twelve times the monthly salary.

If the employment ends due to the death of the employee, the termination benefit only amounts to half of the above-mentioned amounts and is only owed to the legal beneficiaries who were legal dependents of the deceased.

For employees who joined the Company after 31 December 2002, the statutory provisions of the BMSFB apply. These people are therefore, as instructed, not included in the calculation of the termination benefits.

The UNIQA Group’s repositioning led to an expected reduction of staff which is covered by provisions for social capital amounting to €17,088 thousand (2013: €42,136 thousand).

Calculation factors applied

2014

2013

In per cent

 

 

Discount rate

2.50%

3.00%

Valorisation of remuneration

3.00%

3.00%

Valorisation of pensions

2.00%

2.00%

Employee turnover rate

dependent on years of service

dependent on years of service

Calculation principles

AVÖ 2008 P – Pagler & Pagler/salaried employees

AVÖ 2008 P – Pagler & Pagler/salaried employees

Details of expenses for pensions and similar obligations recognised in the income statement

31/12/2014

31/12/2013

in € thousand

 

 

Current service cost

15,441

38,794

Past service cost

4,737

0

Interest expense

15,259

18,259

Income and expenses from plan changes

–35

–201

Total

35,400

56,853

Movement in pension provision’s plan assets

2014

2013

Fair value of plan assets at 1/1

62,816

64,214

Interest income

1,936

2,135

Allocation to fund

7,971

8,586

Payments

–5,413

–10,244

Gain/loss Other comprehensive income

4,182

–1,876

Fair value of plan assets at 31/12

71,492

62,816

Classes of plan assets

2014

2013

In per cent

 

 

Bonds – euro

35.1

28.6

Bonds – Euro High Yield

3.3

5.1

Corporate bonds – euro

17.8

18.1

Equities – euro

7.4

8.3

Equities – non-euro

6.9

7.7

Equities – emerging markets

3.6

2.0

Alternative investment instruments

0.9

3.1

Land and buildings

0.0

1.9

Cash

6.4

0.0

Synthetic cash position

0.0

3.3

HTM bonds/term deposits

18.6

22.0

Total

100.0

100.0

Under the defined contribution company pension scheme, the employer pays the fixed amounts into company pension funds. The employer has satisfied their obligation by making these contributions.

in € thousand

31/12/2014

31/12/2013

Contributions to company pension funds

2,293

2,199

© UNIQA Group 2015