20.Provisions for Pensions and Other Post-employment Benefits

Provisions for pensions and other post-employment benefits were recognized for defined benefit obligations.

The net defined benefit liability for post-employment benefit plans was accounted for as follows:

Net defined benefit liability reflected in the statement of financial position

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Pensions

 

Other post-employment benefits

 

Total

 

 

Dec. 31, 2020

 

Dec. 31, 2021

 

Dec. 31, 2020

 

Dec. 31, 2021

 

Dec. 31, 2020

 

Dec. 31, 2021

 

 

€ million

 

€ million

 

€ million

 

€ million

 

€ million

 

€ million

Provisions for pensions and other post-employment benefits

 

1,977

 

1,054

 

146

 

145

 

2,123

 

1,199

Germany

 

1,862

 

948

 

 

 

1,862

 

948

Other countries

 

115

 

106

 

146

 

145

 

261

 

251

 

 

 

 

 

 

 

 

 

 

 

 

 

Net defined benefit asset

 

2

 

4

 

 

 

2

 

4

Germany

 

2

 

3

 

 

 

2

 

3

Other countries

 

 

1

 

 

 

 

1

 

 

 

 

 

 

 

 

 

 

 

 

 

Net defined benefit liability

 

1,975

 

1,050

 

146

 

145

 

2,121

 

1,195

Germany

 

1,860

 

945

 

 

 

1,860

 

945

Other countries

 

115

 

105

 

146

 

145

 

261

 

250

The expenses for defined benefit plans and for other post-employment benefits included the components described as follows:

Expenses for defined benefit plans

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Pension plans

 

Other post-employment benefit plans

 

 

Germany

 

Other countries

 

Total

 

Other countries

 

 

2020

 

2021

 

2020

 

2021

 

2020

 

2021

 

2020

 

2021

 

 

€ million

 

€ million

 

€ million

 

€ million

 

€ million

 

€ million

 

€ million

 

€ million

Current service cost

 

97

 

97

 

11

 

12

 

108

 

109

 

2

 

2

Past service cost

 

12

 

3

 

 

1

 

12

 

4

 

 

Service cost

 

109

 

100

 

11

 

13

 

120

 

113

 

2

 

2

Interest expense from defined benefit obligation

 

41

 

31

 

15

 

11

 

56

 

42

 

4

 

3

Interest income from plan assets

 

(24)

 

(19)

 

(12)

 

(8)

 

(36)

 

(27)

 

 

Net interest

 

17

 

12

 

3

 

3

 

20

 

15

 

4

 

3

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total expenses

 

126

 

112

 

14

 

16

 

140

 

128

 

6

 

5

In fiscal 2021, a total of €510 million in income (previous year: expense of €130 million) in effects of remeasurements of the net defined benefit liability was also recognized in other comprehensive income. This resulted largely from a rise in discount rates. Of this amount, €500 million (previous year: expense of €119 million) relates to pension obligations and €10 million (previous year: expense of €11 million) to other post-employment benefit obligations.

The changes in the net defined benefit liability for post-employment benefit plans were as follows:

Changes in the present value of the defined benefit obligation

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

2020

 

2021

 

 

Germany

 

Other countries

 

Total

 

Germany

 

Other countries

 

Total

 

 

€ million

 

€ million

 

€ million

 

€ million

 

€ million

 

€ million

January 1

 

4,154

 

790

 

4,944

 

4,487

 

771

 

5,258

Acquisition

 

 

 

 

16

 

6

 

22

Divestment

 

(3)

 

(3)

 

(6)

 

 

 

Current service cost

 

97

 

13

 

110

 

97

 

14

 

111

Past service cost

 

12

 

 

12

 

3

 

1

 

4

Interest expense from defined benefit obligation

 

41

 

19

 

60

 

31

 

14

 

45

Net actuarial (gain)/loss

 

225

 

69

 

294

 

(388)

 

(41)

 

(429)

of which due to change in financial assumptions

 

223

 

64

 

287

 

(363)

 

(46)

 

(409)

of which due to change in demographic assumptions

 

 

(4)

 

(4)

 

 

 

of which due to experience adjustments

 

2

 

9

 

11

 

(25)

 

5

 

(20)

Employee contributions

 

10

 

1

 

11

 

14

 

1

 

15

Payments due to plan settlements1

 

8

 

(8)

 

 

2

 

(1)

 

1

Benefits paid out of plan assets

 

(28)

 

(41)

 

(69)

 

(31)

 

(46)

 

(77)

Benefits paid by the company

 

(29)

 

(17)

 

(46)

 

(33)

 

(13)

 

(46)

Exchange differences

 

 

(52)

 

(52)

 

 

47

 

47

December 31

 

4,487

 

771

 

5,258

 

4,198

 

753

 

4,951

of which other post-employment benefits

 

 

147

 

147

 

 

147

 

147

1

Payments due to plan settlements may include transfers from and to other companies in the course of employee transfers for which benefits are granted as part of a multi-employer plan managed as a pension plan by the transferring and receiving company.

Changes in fair value of plan assets

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

2020

 

2021

 

 

Germany

 

Other countries

 

Total

 

Germany

 

Other countries

 

Total

 

 

€ million

 

€ million

 

€ million

 

€ million

 

€ million

 

€ million

January 1

 

2,457

 

526

 

2,983

 

2,627

 

510

 

3,137

Acquisition

 

 

 

 

1

 

5

 

6

Divestment

 

(1)

 

(3)

 

(4)

 

 

 

Interest income from plan assets

 

24

 

12

 

36

 

19

 

8

 

27

Return or (expense) on plan assets excluding amounts recognized as interest result

 

116

 

47

 

163

 

93

 

(10)

 

83

Employer contributions

 

43

 

10

 

53

 

531

 

8

 

539

Employee contributions

 

10

 

1

 

11

 

14

 

1

 

15

Payments due to plan settlements1

 

6

 

(7)

 

(1)

 

 

(1)

 

(1)

Benefits paid out of plan assets

 

(28)

 

(41)

 

(69)

 

(31)

 

(46)

 

(77)

Plan administration cost paid out of plan assets

 

 

 

 

(1)

 

 

(1)

Exchange differences

 

 

(35)

 

(35)

 

 

30

 

30

December 31

 

2,627

 

510

 

3,137

 

3,253

 

505

 

3,758

of which other post-employment benefits

 

 

1

 

1

 

 

2

 

2

1

Payments due to plan settlements may include transfers from and to other companies in the course of employee transfers for which benefits are granted as part of a multi-employer plan managed as a pension plan by the transferring and receiving company.

Effects of the asset ceiling

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

2020

 

2021

 

 

Germany

 

Other countries

 

Total

 

Germany

 

Other countries

 

Total

 

 

€ million

 

€ million

 

€ million

 

€ million

 

€ million

 

€ million

January 1

 

 

2

 

2

 

 

 

Remeasurement of asset ceiling

 

 

(1)

 

(1)

 

 

2

 

2

Exchange differences

 

 

(1)

 

(1)

 

 

 

December 31

 

 

 

 

 

2

 

2

of which other post-employment benefits

 

 

 

 

 

 

Development of the net defined benefit liability

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

2020

 

2021

 

 

Germany

 

Other countries

 

Total

 

Germany

 

Other countries

 

Total

 

 

€ million

 

€ million

 

€ million

 

€ million

 

€ million

 

€ million

January 1

 

1,697

 

266

 

1,963

 

1,860

 

261

 

2,121

Acquisition

 

 

 

 

15

 

1

 

16

Divestment

 

(2)

 

 

(2)

 

 

 

Current service cost

 

97

 

13

 

110

 

97

 

14

 

111

Past service cost

 

12

 

 

12

 

3

 

1

 

4

Net interest

 

17

 

7

 

24

 

12

 

6

 

18

Net actuarial (gain) / loss

 

225

 

69

 

294

 

(388)

 

(41)

 

(429)

(Return) or expense on plan assets excluding amounts recognized as interest result

 

(116)

 

(47)

 

(163)

 

(93)

 

10

 

(83)

Remeasurement of asset ceiling

 

 

(1)

 

(1)

 

 

2

 

2

Employer contributions

 

(43)

 

(10)

 

(53)

 

(531)

 

(8)

 

(539)

Employee contributions

 

 

 

 

 

 

Payments due to plan settlements1

 

2

 

(1)

 

1

 

2

 

 

2

Benefits paid out of plan assets

 

 

 

 

 

 

Benefits paid by the company

 

(29)

 

(17)

 

(46)

 

(33)

 

(13)

 

(46)

Plan administration cost paid out of plan assets

 

 

 

 

1

 

 

1

Exchange differences

 

 

(18)

 

(18)

 

 

17

 

17

December 31

 

1,860

 

261

 

2,121

 

945

 

250

 

1,195

of which other post-employment benefits

 

 

146

 

146

 

 

145

 

145

1

Payments due to plan settlements may include transfers from and to other companies in the course of employee transfers for which benefits are granted as part of a multi-employer plan managed as a pension plan by the transferring and receiving company.

The benefit obligations pertained mainly to Germany (85%; previous year: 85%) and the United States (11%; previous year: 11%). In Germany, current employees accounted for about 57% (previous year: about 61%) of entitlements under defined benefit plans, retirees or their surviving dependents for about 35% (previous year: about 31%), and former employees with vested pension rights for about 8% (previous year: about 8%). In the United States, current employees accounted for about 38% (previous year: about 40%) of entitlements under defined benefit plans, retirees or their surviving dependents for about 54% (previous year: about 53%), and former employees with vested pension rights for about 8% (previous year: about 7%).

The actual income from plan assets of defined benefit plans for pensions amounted to €110 million (previous year: €199 million). No income was accrued from plan assets for other post-employment benefits either in the reporting period or the prior year.

The following table shows the defined benefit obligations for pensions and other post-employment benefits along with the funded status of the funded obligations:

Defined benefit obligation and funded status

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Pension obligations

 

Other post-employment benefit obligations

 

Total

 

 

2020

 

2021

 

2020

 

2021

 

2020

 

2021

 

 

€ million

 

€ million

 

€ million

 

€ million

 

€ million

 

€ million

Defined benefit obligation

 

5,111

 

4,804

 

147

 

147

 

5,258

 

4,951

Unfunded

 

94

 

135

 

144

 

143

 

238

 

278

Funded

 

5,017

 

4,669

 

3

 

4

 

5,020

 

4,673

Funded status of funded obligations

 

 

 

 

 

 

 

 

 

 

 

 

Overfunding

 

2

 

6

 

 

 

2

 

6

Underfunding

 

1,883

 

919

 

2

 

2

 

1,885

 

921

Pension Entitlements and Other Post-Employment Benefit Obligations

The Covestro Group provides retirement benefits for most of its employees, either directly or by contributing to privately or publicly administered funds. The way these benefits are provided varies according to the legal, tax, and economic conditions of each country, the benefits generally being based on employee compensation and years of service. The obligations relate both to existing retirees’ pensions and to pension entitlements of future retirees.

Funded pension plans exist for employees in various countries. In principle, an individual investment strategy is determined for each of the Covestro Group’s defined benefit pension plans taking into account the risk structure of the obligations (especially demographics, the current funded status, the structure of the expected future cash flows, interest sensitivity, biometric risks, etc.), the regulatory environment, and the existing level of risk tolerance or risk capacity. A strategic target investment portfolio is then developed in line with the plan’s risk structure, taking capital market factors into consideration. Further determinants are risk diversification, portfolio efficiency and the need for both a country-specific and a global risk/return profile centered on ensuring the payment of all future benefits. In principle, as the capital investment strategy for each pension plan is developed individually in light of the plan-specific conditions listed above, the investment strategies for different pension plans may vary considerably. The investment strategies are generally aligned less toward maximizing absolute returns and more toward the reasonable assurance of financing pension commitments over the long term. For plan assets, stress scenarios are simulated and other risk analyses (such as value at risk) are undertaken with the aid of risk management systems.

In addition to investment strategies tailored to the obligations, funding in the form of regular or unscheduled contributions is also an effective instrument for reducing risk. Potential funding measures for pension obligations are therefore selected taking into account country-specific regulatory requirements and liquidity. If an unscheduled contribution is made, the funded status may increase significantly under certain circumstances and thereby reduce the volatility of the net defined benefit liability recognized. As a consequence the level of liability-driven investments in plan assets can be further increased. In addition, the expected future liability on operating cash flows is reduced due to the increase in plan assets that are available to settle pension payments.

Bayer-Pensionskasse VVaG, Leverkusen (Germany), (Bayer-Pensionskasse) is a significant pension plan for Covestro. It has been closed to new members since January 1, 2005. This legally independent fund is regarded as a life insurance company and is therefore subject to the German Insurance Supervision Act. The benefit obligations covered by Bayer-Pensionskasse comprise retirement, surviving dependents’ and disability pensions. It is financed with contributions by the active members and by their employers. The company contribution is a certain percentage of the employee contribution. This percentage is the same for all participating employers and is set by agreement between the plan’s executive committee and supervisory board, acting on a proposal from the responsible actuary. It takes into account the differences between the actuarial estimates and the actual values for the factors used to determine liabilities and contributions. Bayer AG, Leverkusen (Germany), (Bayer AG) may adjust the company contribution in agreement with the plan’s executive committee and supervisory board, acting on a proposal from the responsible actuary. The plan’s liability is governed by Section 1, Paragraph 1, Sentence 3 of the German Law on the Improvement of Occupational Pensions (BetrAVG). This means that if the pension plan exercises its right under the articles of association to reduce benefits, each participating employer has to make up the resulting difference. Covestro is not liable for the obligations of other participating employers, even if they cease to participate in the plan.

Pension entitlements were granted via Rheinische Pensionskasse VVaG, Leverkusen (Germany), (Rheinische Pensionskasse) between January 1, 2005, and December 31, 2020. It has been closed to new members since January 1, 2021. Future pension payments from this plan are based among other things on contributions and the return on plan assets; a guaranteed interest rate applies.

The Bayer-Pensionskasse and Rheinische Pensionskasse pension obligations are classified as multi-employer plans as defined by  19 (Employee Benefits). A defining characteristic of multi-employer plans is that assets from various employers not under common control are pooled at plan level and used to collectively grant pension benefits to employees. Allocation mechanisms that would permit an exact distribution of the plan assets managed by the pension plan to individual employers often do not exist, as in the case of Bayer-Pensionskasse and Rheinische Pensionskasse. Covestro therefore applies an estimation method that is adequately suited to this purpose to calculate its proportional share of the assets of the pension plans.

Pension entitlements for newly hired employees have been granted by Pensionplan2021 since January 1, 2021. This is a funded company pension plan. Contributions are invested in an age-based investment model at the individual employee level. Future pension payments are determined based on the contributions paid in and the return achieved. The pension entitlements are managed by Metzler Trust e. V., Frankfurt am Main, (Germany), (Metzler Trust). Individuals employed at Covestro prior to January 1, 2021, who acquired pension entitlements via Rheinische Pensionskasse are entitled to switch to Pensionsplan2021.

Metzler Trust is also used as a pension vehicle for further obligations than Pensionplan2021. This vehicle covers further retirement provision arrangements for German employees of the Covestro Group, such as the conversion of salary entitlements into pension entitlements, pension obligations, and components of other direct commitments. Metzler Trust covers the majority of funded pension commitments in Germany. Around 35% of the investment total adheres to ESG (environmental, social, and governance) criteria.

The defined benefit pension plans in the United States have been frozen for some years, and no significant new entitlements can be earned under these plans. The assets of all the U.S. pension plans are held by a master trust for reasons of efficiency. The applicable regulatory framework is based on the Employee Retirement Income Security Act (ERISA). The actuarial risks, such as investment risk, interest rate risk and longevity risk, remain with the company.

The other post-employment benefit obligations outside Germany are mainly related to retirees’ health care benefit payments in the United States.

The fair value of the plan assets to fund pensions and other post-employment benefit obligations was as follows:

Fair value of plan assets as of December 31

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Pension obligations

 

Other post-employment obligations

 

 

Germany

 

Other countries

 

Other countries

 

 

2020

 

2021

 

2020

 

2021

 

2020

 

2021

 

 

€ million

 

€ million

 

€ million

 

€ million

 

€ million

 

€ million

Plan assets based on quoted prices in active markets

 

 

 

 

 

 

 

 

 

 

 

 

Real estate and special real estate funds

 

 

 

6

 

6

 

 

Equities and equity funds

 

556

 

495

 

52

 

51

 

 

Callable debt instruments

 

 

 

9

 

10

 

 

Noncallable debt instruments

 

782

 

727

 

72

 

45

 

 

Bond funds

 

415

 

415

 

233

 

253

 

 

Derivatives

 

1

 

 

 

 

 

Cash and cash equivalents

 

154

 

759

 

8

 

10

 

 

Other

 

 

 

9

 

10

 

 

 

 

1,908

 

2,396

 

389

 

385

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Plan assets for which quoted prices in active markets are not available

 

 

 

 

 

 

 

 

 

 

 

 

Real estate and special real estate funds

 

145

 

194

 

 

 

 

Equities and equity funds

 

29

 

70

 

 

 

 

Callable debt instruments

 

199

 

224

 

 

 

 

Noncallable debt instruments

 

331

 

303

 

 

 

 

Bond funds

 

 

 

 

 

 

Derivatives

 

 

 

 

 

 

Cash and cash equivalents

 

 

 

 

 

 

Other

 

15

 

66

 

120

 

118

 

1

 

2

 

 

719

 

857

 

120

 

118

 

1

 

2

 

 

 

 

 

 

 

 

 

 

 

 

 

Total plan assets

 

2,627

 

3,253

 

509

 

503

 

1

 

2

No properties leased by Group companies were included in the fair value of the domestic plan assets. Likewise, there were no Covestro shares or bonds held through funds. The other plan assets comprise mortgage loans granted, other receivables and qualified insurance policies. In November 2021, current financial assets (money market funds) in the amount of €500 million were transferred to Metzler Trust to cover future pension entitlements and are reported in plan assets under cash and cash equivalents.

Risks

The risks from defined benefit plans arise partly from the defined benefit obligations and partly from the investment in plan assets. The risks lie in the possibility that higher direct pension payments will have to be made to the beneficiaries and/or that additional contributions will have to be made to plan assets in order to meet current and future pension obligations.

Demographic/Biometric Risks

Since a large proportion of the defined benefit obligations comprises lifelong pensions or surviving dependents’ pensions, longer claim periods or earlier claims may result in higher benefit obligations, higher benefit expense and/or higher pension payments than previously anticipated.

Investment Risks

If the actual return on plan assets were below the return anticipated on the basis of the discount rate, the net defined benefit liability would increase, assuming there were no changes in other parameters. This could happen as a result of a drop in share prices, increases in market rates of interest, default of individual debtors or the purchase of low-risk but low-interest bonds, for example.

Interest Rate Risks

Declining capital market interest rates, especially for high-quality corporate bonds, would increase the defined benefit obligation. This effect would be at least proportionately offset by the ensuing increase in the fair values of the debt instruments held in plan assets.

Measurement Parameters and their Sensitivities

The bond portfolio consists exclusively of high-quality corporate bonds with a rating of at least AA or AAA. The portfolio does not include any government-guaranteed or secured bonds. The following weighted parameters were used to measure the pension obligations as of December 31 and the expense for pensions and other post-employment benefits in the respective reporting year.

Parameters for benefit obligations

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Germany

 

Other countries

 

Total

 

 

2020

 

2021

 

2020

 

2021

 

2020

 

2021

 

 

%

 

%

 

%

 

%

 

%

 

%

Pension obligations

 

 

 

 

 

 

 

 

 

 

 

 

Discount rate

 

0.70

 

1.20

 

1.70

 

2.15

 

0.80

 

1.30

Projected future salary increases

 

2.75

 

2.75

 

2.95

 

2.95

 

2.75

 

2.80

Projected future benefit increases

 

1.60

 

1.80

 

2.72

 

2.75

 

1.75

 

1.90

Other post-employment benefit obligations

 

 

 

 

 

 

 

 

 

 

 

 

Discount rate

 

 

 

2.30

 

2.75

 

2.30

 

2.75

In Germany, the Heubeck 2018 G mortality tables were used, in the United States the MP-2021 Mortality Tables. The parameters for measuring the benefit expense are the same as those used to measure the benefit obligations in the most recent annual financial statements.

The parameter sensitivities were computed by expert actuaries based on a detailed evaluation similar to that performed to determine the net defined benefit liability. Altering individual parameters by 0.5 percentage points (mortality by 10% per beneficiary) while leaving the other parameters unchanged would have impacted pension and other post-employment benefit obligations as of the end of fiscal year 2021 as follows:

Sensitivity analysis of benefit obligations

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Germany

 

Other countries

 

Total

 

 

Increase

 

Decrease

 

Increase

 

Decrease

 

Increase

 

Decrease

 

 

€ million

 

€ million

 

€ million

 

€ million

 

€ million

 

€ million

Pension obligations

 

 

 

 

 

 

 

 

 

 

 

 

0.5 percentage points change in discount rate

 

(401)

 

464

 

(32)

 

36

 

(433)

 

500

0.5 percentage points change in projected future salary increases

 

28

 

(26)

 

3

 

(3)

 

31

 

(29)

0.5 percentage points change in projected future benefit increases

 

244

 

(221)

 

2

 

(2)

 

246

 

(223)

10% change in mortality

 

(130)

 

147

 

(12)

 

13

 

(142)

 

160

Other post-employment benefit obligations

 

 

 

 

 

 

 

 

 

 

 

 

0.5 percentage points change in discount rate

 

 

 

(9)

 

10

 

(9)

 

10

10% change in mortality

 

 

 

(4)

 

5

 

(4)

 

5

Sensitivity analysis of benefit obligations (previous year)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Germany

 

Other countries

 

Total

 

 

Increase

 

Decrease

 

Increase

 

Decrease

 

Increase

 

Decrease

 

 

€ million

 

€ million

 

€ million

 

€ million

 

€ million

 

€ million

Pension obligations

 

 

 

 

 

 

 

 

 

 

 

 

0.5 percentage points change in discount rate

 

(457)

 

533

 

(36)

 

40

 

(493)

 

573

0.5 percentage points change in projected future salary increases

 

37

 

(34)

 

3

 

(3)

 

40

 

(37)

0.5 percentage points change in projected future benefit increases

 

269

 

(242)

 

3

 

(2)

 

272

 

(244)

10% change in mortality

 

(145)

 

164

 

(12)

 

13

 

(157)

 

177

Other post-employment benefit obligations

 

 

 

 

 

 

 

 

 

 

 

 

0.5 percentage points change in discount rate

 

 

 

(9)

 

10

 

(9)

 

10

10% change in mortality

 

 

 

(4)

 

5

 

(4)

 

5

Provisions are also set up for the obligations, mainly of Covestro LLC, Pittsburgh, Pennsylvania (United States), to provide post-employment benefits in the form of health care cost payments to retirees. The valuation of health care costs was based on the assumption that they will increase at a rate of 6% (previous year: 7%), which should gradually decline to 5% (previous year: 5%) by 2032. The following table shows the impact of a one-percentage-point change in the assumed health care cost increase rates:

Sensitivity analysis of health care cost increases

 

 

 

 

 

 

 

 

 

 

 

2020

 

2021

 

 

Increase of one percentage point

 

Decrease of one percentage point

 

Increase of one percentage point

 

Decrease of one percentage point

 

 

€ million

 

€ million

 

€ million

 

€ million

Impact on other post-employment benefit obligations

 

13

 

(10)

 

11

 

(10)

Employer Contributions Made or Expected

The following payments or transfers correspond to the employer contributions made or expected to be made to funded benefit plans:

Employer contributions made or expected

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Germany

 

Other countries

 

 

2020

 

2021 expected

 

2021

 

2022 expected

 

2020

 

2021 expected

 

2021

 

2022 expected

 

 

€ million

 

€ million

 

€ million

 

€ million

 

€ million

 

€ million

 

€ million

 

€ million

Pension obligations

 

43

 

38

 

531

 

33

 

8

 

7

 

7

 

9

Other post-employment benefit obligations

 

 

 

 

 

2

 

 

1

 

Total

 

43

 

38

 

531

 

33

 

10

 

7

 

8

 

9

Pensions and other post-employment benefits payable in the future from funded and unfunded plans are estimated as follows:

Future benefit payments

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Payments out of plan assets

 

Payments by the company

 

 

Pensions

 

Other post-employment benefits

 

 

 

Pensions

 

Other post-employment benefits

 

 

 

 

Germany

 

Other countries

 

Other countries

 

Total

 

Germany

 

Other countries

 

Other countries

 

Total

 

 

€ million

 

€ million

 

€ million

 

€ million

 

€ million

 

€ million

 

€ million

 

€ million

2022

 

37

 

46

 

 

83

 

40

 

6

 

6

 

52

2023

 

40

 

30

 

 

70

 

42

 

5

 

7

 

54

2024

 

42

 

36

 

 

78

 

44

 

6

 

7

 

57

2025

 

45

 

32

 

 

77

 

47

 

7

 

7

 

61

2026

 

49

 

32

 

 

81

 

50

 

7

 

7

 

64

2027–2031

 

296

 

172

 

2

 

470

 

291

 

36

 

39

 

366

The weighted average term of the pension obligations is 20.8 years (previous year: 23.3 years) in Germany and 11.5 years (previous year: 12.4 years) in other countries. The weighted average term of the obligations for other post-employment benefits in other countries is 12.3 years (previous year: 12.8 years).

IAS/Accounting Standards
International accounting standards as endorsed by the European Union respectively published by the IASB or the IFRS IC.