SEC Form 20-F - Deutsche Bank Annual Report 2012

Deutsche Bank Additional Notes F-146
Annual Report 2010 on Form 20-F 33 – Employee Benefits
Actuarial Methodology and Assumptions
December 31 is the measurement date for all plans. All plans are valued using the projected unit credit method.
The principal actuarial assumptions applied to determine the DBO and expenses were as follows. They are
provided in the form of weighted averages.
2010 2009 2008
Assumptions used for retirement benefit plans
to determine defined benefit obligations, end of year
Discount rate 5.1 % 5.4 % 5.6 %
Rate of price inflation 2.5 % 2.7 % 2.1 %
Rate of nominal increase in future compensation levels 3.3 % 3.4 % 3.0 %
Rate of nominal increase for pensions in payment
to determine expense, year ended
2.4 % 2.4 % 1.8 %
Discount rate 5.4 % 5.6 % 5.5 %
Rate of price inflation 2.7 % 2.1 % 2.1 %
Rate of nominal increase in future compensation levels 3.4 % 3.0 % 3.3 %
Rate of nominal increase for pensions in payment 2.4 % 1.8 % 1.8 %
Expected rate of return on plan assets 1 Assumptions used for post-employment medical plans
to determine defined benefit obligations, end of year
5.0 % 4.5 % 5.0 %
Discount rate
to determine expense, year ended
5.3 % 5.9 % 6.1 %
Discount rate
Assumed life expectancy at age 65
5.9 % 6.1 % 6.1 %
for a male aged 65 at measurement date 19.4 19.4 19.1
for a male aged 45 at measurement date 21.6 21.5 21.1
for a female aged 65 at measurement date 22.8 22.8 22.6
for a female aged 45 at measurement date 24.9 24.8 24.5
1 The expected rate of return on assets for determining expense in 2011 is 4.9 %.
For the Group’s most significant plans, the discount rate assumption at each measurement date is set based on
a high quality corporate bond yield curve approach reflecting the actual timing and amount of the future benefit
payments for the respective plan. A consistent assumption is used across the eurozone based on the assumption
applicable for Germany. For the other plans, the discount rate is based on high quality corporate or government
bond yields at each measurement date with a duration consistent with the respective plan’s obligations.
The price inflation assumptions in the U.K. and eurozone are set with reference to market implied measures of
inflation based on inflation swap rates in those markets at measurement date. For the other countries, it is
typically based on long term consensus forecasts.
The future compensation level increase assumptions are developed separately for each plan, where relevant,
reflecting a building block approach from the price inflation assumption and reflecting the Group’s reward
structure or policies in each market.