ÖBB Annual Report 2023

279 Consolidated Financial Statements Österreichische Bundesbahnen-Holding Aktiengesellschaft Consolidated Financial Statements | Group Management Report 61 The following table shows the components of the anniversary benefit expenses for the period and the development of the anniversary provisions in the two reporting years: 2023 2022 in EUR million in EUR million Defined benefit commitments as of Jan 01 237.3 271.5 Service cost 11.9 14.3 Interest cost 9.4 2.6 Anniversary bonuses -21.9 -18.6 Actuarial losses (+) / gains (-) 14.2 -39.9 Experience adjustments 11.4 7.4 Defined benefit commitments as of Dec 31 262.3 237.3 The average term (duration) is 8.6 (py: 8.1) years. A change in the actuarial assumptions would have the following effect: Sensitivity analysis of the Change in assumption Increase of the parameter / change in DBO Decrease of the parameter / change in DBO provisions for anniversaries in % 2023 in EUR million 2022 in EUR million 2023 in EUR million 2022 in EUR million Interest rate +/- 0.2 -4.5 -4.3 4.3 3.1 Salary increase +/- 0.2 4.2 3.0 -4.4 -4.3 Pensions Only individual contractual pension commitments are recognised under provisions for pensions. Defined contribution plans In Austria, pension benefits for salaried employees are generally provided by the social insurance institutions and for railway employees by the Insurance Institution for Public Employees, Railways and Mining (BVAEB) and by the federal government on the basis of Section 52 of the Federal Railways Act. The ÖBB Group is required by law to make contributions to the Insurance Institution for Public Employees, Railways and Mining for pensions and healthcare for active employees with permanent positions. In addition, the ÖBB Group offers a defined contribution pension plan to all employees of the ÖBB Group in Austria. ÖBB Group contributions are calculated as a percentage of remuneration and may not exceed 1.2%. The expenses of this plan amounted to approx. EUR 24.3 million in the reporting year (py: approx. EUR 20.8 million). Defined contribution plans A defined benefit pension plan (payments from the age of 60) exists for a former member of the Board of Management, for which the ÖBB Group has been making payments since 2010. The plan, which is unfunded, provides pension payments that are a percentage of salary depending on years of employment. The pension amounts to a maximum of 13.2% of the final salary. The measurement was based on actuarial principles assuming a discount factor of 3.50% (py: 4.20%) and a retirement age of 60.