Siegfried Annual Report 2009

Changes in the present value of the defined benefit
obligation
Pension plans
Other long-term
employee benefits
In CHF million 2009 2008 2009 2008
Opening defined benefit
obligation as of 1.1. 248.2 256.7 3.1 2.9
Current service cost 6.1 6.6 0.3 0.3
Plan participants’ contributions 3.4 3.3 – –
Interest on obligation 8.4 8.7 0.1 0.1
Benefit payments and net
transferals through pension assets –16.2 –15.0 – –
Benefit payments by employer –0.3 –0.3 –0.3 –0.2
Past service cost –0.2 2.0 –1.6 –
Curtailments –2.3 –11.2 – –
Termination benefits 1.4 – – –
Actuarial (gains) or losses 0.5 –2.0 0.1 –
Exchange differences
on foreign plans –0.1 –0.6 – –
Closing defined benefit
obligation as of 31.12. 248.9 248.2 1.7 3.1
Changes in the fair value of plan assets
[Vorsorgepläne]
In CHF million 2009 2008
Opening fair value of plan assets as of 1.1. 226.7 266.3
Plan participants’ contributions 3.4 3.3
Contributions by employer 5.6 5.6
Benefit payments and net transferals
through pension assets –16.2 –15.0
Expected return on plan assets 9.6 10.7
[Gewinn/(Verlust) aus Vermögensertrag] 15.2 –43.9
Exchange differences on foreign plans –0.2 –0.3
Closing fair value of assets as of 31.12. 244.1 226.7
The pension assets on 31.12.2009 include shares of the
Group with a market value of CHF 1.2 million (previous year:
CHF 1.2 million). The assets do not include any property or
assets used by the Group.
Expected employer contributions and expected benefit payments
by the employer for 2009 amount to CHF 5.7 million
for defined benefit plans and CHF 0.3 million for other longterm
benefits.
The net position of pension obligations in the balance sheet
can be summarized as follows:
Amount recognized in the Balance Sheet
Other long-term
In CHF million Pension plans employee benefits
Valuation date 31.12. 2009 2008 2009 2008
Present value of funded obligation 246.4 245.7 – –
Fair value of plan assets –244.1 –226.7 – –
Under-/(Over-)funding 2.3 19.0 – –
Present value of non-funded
obligation 2.5 2.5 1.7 3.1
Present value of
unfunded obligations –1.4 –1.6 – –
Recognized pension liabilities/-assets 3.4 19.9 1.7 3.1
Net liability
Amounts in the balance sheet 3.6 19.9 1.7 3.1
Liabilities –0.2 – – –
Recognized pension liabilities/-assets 3.4 19.9 1.7 3.1
of which current 0.9 0.9
of which non-current 2.5 18.9
The following principal assumptions form the basis for the
actuarial calculation:
Other long-term
In % Pension plans employee benefits
Valuation date 31.12. 2009 2008 2009 2008
Calculation of defined
benefit obligations
Discount rate 3.3 3.5 3.3 3.4
Future salary increases 2.5 2.5 2.5 2.5
Future pension indexations 0.5 0.6
Average life expectancy
man at age 65 18 years 18 years
Calculation of expense 2009 2008 2009 2008
Discount rate 3.5 3.5 3.4 3.5
Expected return on plan assets 1 4.3 4.2
1
The expected return on plan assets is based on actual interest rates of
bands and historical risk premiums for other classes of assets.
The pension assets are composed of the following significant
asset classes:
Asset classes pension plans
In %
Asset classes pension plans
Valuation date 31.12. 2009 2008
Equities 22 21
Bonds 33 35
Real estate 19 20
Qualified insurance policies 2 7
Others including cash 24 17
98 Financial Statements Siegfried Group