Consolidated Annual Report 2012 and Single-Entity ... - PVA TePla AG

ilities due to the inclusion of the request for collateral for
an additional approved loan with a total volume of EUR 10
million for financing construction in Wettenberg. While this
loan was approved in 2007, it was not utilized in the 2012
fiscal year.
The loan for the financing of investments in machinery for
the subsidiary PVA Löt- und Werkstofftechnik GmbH, Jena
is secured through the transfer of ownership of the assets
to be financed. The carrying amount of this collateral was
EUR 1,332 thousand on December 31, 2012 (previous
year: EUR 1,564 thousand).
The financial liabilities of PVA TePla AG are carried at amortized
cost. As in the previous year, our banks were unable
to provide us with the corresponding information, meaning
that we were only able to approximate the actual
market values using the present values of the principal
repayments based on the yield curve at the balance sheet
date plus a risk premium of 1%. This resulted in deviations
between the conditions at the conclusion date and the balance
sheet date in the amount of EUR -1,181 thousand
(previous year: EUR -1,012 thousand).
17. RETIREMENT PENSION PROVISIONS
Basic principles
In the area of company pension schemes, a distinction is
made between defined benefit plans and defined contribution
plans. In the case of defined benefit plans, the Company
is obliged to pay defined benefits to active and former
employees.
In the case of defined contribution plans, the Company
does not enter into any additional obligations other than
making earmarked contributions.
Defined benefit plans
Provisions for pension obligations are recognized on the
basis of pension plans for commitments to pay retirement,
invalidity and dependents’ benefits. The amount of benefit
usually depends on the number of years of service and the
salary of the respective employee.
Pension commitments in the form of defined benefit plans
are in place for the eligible employees of PVA TePla AG and
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PVA Vakuum Anlagenbau Jena GmbH. The relevant pension
plans were taken over from previous companies in each
case and only consist of previous benefit obligations. New
pension obligations are generally no longer entered into.
Obligations are calculated using the projected unit credit
method, under which future obligations are measured on
the basis of the proportionate benefit entitlement acquired
at the balance sheet date. Measurement takes into
account assumptions on trends for the relevant factors affecting
the amount of benefits.
There is no external financing via a pension fund.
In detail, the calculation is based on the following actuarial
premises:
in % Dec. 31, 2012 Dec. 31, 2011
Income trend 3.00 3.00
Pension trend 1.25 1.25
Staff turnover 1.50 1.50
Interest rate for active staff 3.60 5.10
Interest rate for pensioners 3.00 4.60
Biometric parameters have been calculated on the basis
of the 2005 G mortality tables issued by Professor Klaus
Heubeck. The measurement of pension obligations is supported
by actuarial reports. The calculation is made using a
mixed interest rate of 3.4% from the weighted average of
the interest rate for active employees and pensioners.
Reconciliation of the present value of future pensions to
the pension provisions in the balance sheet:
in EUR ´000 Dec. 31, 2012 Dec. 31, 2011
Present value of future pensions
(= financing status) 11,338 8,758
Unrealized actuarial losses (-) -2,605 -362
Total 8,733 8,396
Group Financial Statements