Occupational Pensions – The Chief Must Pay

Occupational pensions: A judgment makes it clear: the surrender values be too low depending on the occupational pension, shall be liable to the employer. Claims billions of dollars in threatened the company. For occupational retirement provision will be nothing so as usual. This is ensured by a judgment to the Landesarbeitsgericht Munchen. In case of negotiated, it went to the employee of a company in the auto industry. When they quit her job after three years, she experienced the same disenchantment as many workers.

Despite the 6230 euros which a pension fund had paid her during this time, your insurance account had only a credits from 639 euro. The lush Finder’s fee and other administrative costs, that the life insurer conceded were to blame for this. The Chief expressed his sympathy but, he didn’t feel responsible for the meager yield itself however. So just an employer may no longer make it. According to the judge companies had money in a direct insurance, Provident Fund, pension fund for their employees via salary conversion or cash deposit, to be classified as disinterested Trustees.

The pension commitment must always correspond to the paid post only costs for death and disability protection shall be deducted (4 SA 1152/06). The consequences are dramatic, because companies and provident offer for the deferred compensation often rates, which in the first years, most of the contributions to cover administrative and sales costs fliess, the surrender values are so minimal. In the jargon, this is called Zillmerising. “Chief of staff would be well advised not to offer such contracts now and for existing on their balance sheets to make provisions”, the Munich lawyer Johannes Fiala warns. Employees can claim for at least three years claims against ex – employer, depending on the constellation of the case even up to 30 years. In the face of only three million direct insurance and the fact that workers on average every five years change their job, claims can in Billions of dollars on the economy come to. While companies and insurers should have been warned. In 2005 the Stuttgart Labor Court decided that responsible employers for low return values (19 CA 3152/04). In the former case the staff had felt but not sufficiently advised. Reverse: Advises the Chief comprehensively, to say anything against the Zillmerising is. A mistake, as now demonstrated: Such contracts are void even if informed the employees about the costs and their impact on the return value. The judge as a violation of the contract is cancelled by the rate even a distribution of the costs to up to 10 years”. As lawyer Thomas Keppel from the law firm Dr. Fiala, who represented the applicant before the Labour Court of the country. Even with the introduction of salary increases in the post-employment benefits such as cafeteria models for executives, companies are depending on the agreement in the liability. The now convicted employer has at least one consolation. He can, so Fiala, of the Insurance intermediaries the amount of damages to reclaim for at least three years.