ÖBB Annual Report 2023

277 Consolidated Financial Statements Österreichische Bundesbahnen-Holding Aktiengesellschaft Consolidated Financial Statements | Group Management Report 59 26.1. Provisions for personnel Provisions for personnel Dec 31, 2023 Dec 31, 2022 in EUR million in EUR million Statutory severance payments 84.4 71.0 Pensions 0.8 1.0 Anniversary bonuses 262.3 237.3 Other provisions for personnel 1.2 3.7 Total 348.7 313.0 thereof long-term 348.7 313.0 Apart from the exception of the actuarial gains or losses from the provision for statutory severance payments and pensions, all changes to personnel provisions that affect profit or loss are recognised in personnel expenses. Actuarial assumptions The following table shows the assumptions used in measuring the obligations for anniversary bonuses, severance payments and pensions: Dec 31, 2023 Dec 31, 2022 Discount rate severance payments 3.55% 4.20% Discount rate pensions 3.50% 4.20% Discount rate anniversary bonuses 3.45% 4.10% Rate of compensation increase 5.20% 5.20% Rate of pension payment increases 2.00% 2.00% Employee turnover rate anniversary bonuses of tenured employees 0.00 – 1.27% 0.00 – 1.29% Employee turnover rate anniversary bonuses of other workers and employees 0.00 – 6.96% 0.00 – 7.61% The Group is usually exposed to the following actuarial risks relating to severance payments and anniversary bonuses: – Interest rate risk: a decrease in the interest rate leads to an increase in provisions. – Salary risk: The present value of the provisions is calculated on the basis of the planned future salaries of the beneficiary employees. As a result, increases in the salaries of the beneficiary employees lead to an increase in provisions. Statutory severance payments A provision for severance payments is set aside for the severance payment claims of employees who are not tenured employees, arising from individual employment law or contractual provisions. The provision is calculated on an actuarial basis using the projected unit credit method (PUC method), which is prescribed for valuations in accordance with IAS 19 and is based on the biometric parameters of the Actuarial Association of Austria (AVÖ) 2018-P – mixed portfolio – actuarial assumptions for pension insurance. Severance obligations to employees hired before 01.01.2003, are covered by defined benefit plans as described below. Following legal amendment, employees hired in Austria after 01.01.2003 are covered by a defined contribution plan. In this context, the ÖBB Group paid approx. EUR 19.5 million (py: approx. EUR 16.5 million) into the defined contribution plan (VBV Vorsorgekasse AG and APK-PENSIONSKASSE AG) in the two reporting years. Upon retirement, eligible employees receive a severance payment equal to a multiple of their monthly base salary – based on their period of service – but no more than twelve monthly salaries. Upon termination of employment, up to three months’ salaries are paid immediately, any benefit in excess of that amount being paid over a period not exceeding ten months. In the event of death, the employees’ heirs are entitled to 50% of the severance payment.