Annual Report LRP 2007 - Rheinland Pfalz Bank
Annual Report LRP 2007 - Rheinland Pfalz Bank
Annual Report LRP 2007 - Rheinland Pfalz Bank
You also want an ePaper? Increase the reach of your titles
YUMPU automatically turns print PDFs into web optimized ePapers that Google loves.
120 <strong>LRP</strong> <strong>2007</strong> CONSOLIDATED FINANCIAL STATEMENTS<br />
Expenses recognized in profit or loss are reported<br />
under the staff costs item as part of administrative<br />
expenses.<br />
31Dec. <strong>2007</strong> 31Dec. 2006<br />
1 millions<br />
Current service cost 6 6<br />
Interest expense 22 21<br />
Total 28 27<br />
The present value of the defined benefit plans obligations<br />
changed as follows:<br />
1 millions<br />
31Dec. <strong>2007</strong> 31Dec. 2006<br />
Opening balance of the reporting period 500 498<br />
Current service cost (without employee contributions) 2 6<br />
Interest expense 22 21<br />
Actuarial gains and losses – 44 – 15<br />
Pension benefits paid 31 22<br />
Past service cost 4 0<br />
Business combinations 0 12<br />
Closing balance of the reporting period 453 500<br />
Obligations under defined benefit plans were calculated<br />
using the following actuarial assumptions:<br />
%<br />
31Dec. <strong>2007</strong> 31Dec. 2006<br />
Discount rate 5.5 4.5<br />
Expected rate of salary increase 2.25 2.0<br />
Career dynamics 0.5 0.5<br />
Employee turnover 2.5 2.5<br />
Life expectancy, marriage probability and disability<br />
were calculated using the 2005 Heubeck mortality ta-<br />
bles. Commencement of retirement is determined using<br />
the retirement age based on actuarial assumptions.
Change language