Annual Report 2001 - Bohler Uddeholm materializing visions

Management are generally excluded from pension payments under retirement laws if they
have received commitments in accordance with the guidelines of the Essener Verband. In such
cases, pension payments are determined according to group contributions as defined by the
Essener Verband and the reported entry date; a certain percentage of pensions granted by social
security providers are also taken into account.
Payment obligations are reflected in provisions, which are calculated according to actuarial
principles.
c) Sweden
Since 1974 almost all salaried employees in Sweden have been included in an additional
pension system based on collective bargaining agreements — the “Additional Industrial Pension”
(Industrie Tilaggspension ITP). The range of benefits includes old-age pensions, supplementary
old-age pensions, guaranteed minimum pensions, partial pensions, invalidity and dependants’
pensions.
Independent of the flexible age limit, ITP old-age pensions start at age 65. The prerequisite
for payment is 30 years of full service or at least 16 hours per week beginning at age 29.
The amount of the pension is dependent on the ratio of the final salary to the basic sum according
to the “Law on General Insurance” (AFL).
ITP pension obligations are reflected in the creation of provisions. Claims are protected
against insolvency by the Försäkeringsbolaget Pensionsgaranti (FPG).
The special additional pension for wage employees is based on a plan similar to the ITP
insurance. This also consists of a pension in addition to social security beginning at age 65,
whereby the full pension after 30 years of employment equals 10% of the “retirement wage”.
This figure is based on the three highest years of earnings between age 55 and 59.
d) USA
The Böhler-Uddeholm Corporation pension program consists of a defined benefit plan for
all non-union employees (management staff) and a defined contribution plan for all other employees
of the company.
Non-Union Employees’ Pension Plan
The right to receive a company pension begins after six month of employment and at a
minimum age of 20.5 years. This right becomes vested after five years of service.
The pension is calculated as 0.625% of the final salary/wage plus 0.625% of the difference
between the final salary/wage and the defined minimum pension, multiplied by the allowable
years of service, with an upper limit of 35 such years.
The retirement age is assumed to be 65. Early retirement is possible from 55 onward at
reduced payments if the beneficiary has at least 15 years of service or total years of service
plus age of at least 80.
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