GERMANY – Tourism and transport giant TUI has revised upwards its actuarial expectations about future pension increases at its German schemes.
TUI, formerly Preussag, said in its 2002 annual report that it has upped its actuarial parameters for pensions at its Germany-based companies. It now sees projected future pension increases at 1.83%-2.5%. A year earlier, it had projected 1.5%-1.83%.
And projected future salary increases were in the one to two percent range, down from 2.5% at the end of 2001. The projected discount rate and staff turnover rate were unchanged at 5.6% and two percent respectively.
But the group has raised its expected return on assets at its UK-based schemes, which include Britannia Airways and TUI UK. It now expects fund assets to return eight percent, up from 6.25% before. It cut the UK schemes’ discount rate to 5.6% from 6.25%.
During 2002, TUI said that it converted its funded pension scheme to a defined contribution system. It contributed 144 million euros in the year to cover pension entitlements.