Pension Plans – Catching Up On The Funding

BilMoG and pension commitments: action by new evaluation approaches Rosenheim, 1.09.2010. A company survey shows that the German middle class compared to DAX listed companies has significant pent-up demand for the funding of pension obligations. Still the important for SMEs subject companies is limited interest. This may change, however with the introduction of the accounting law modernisation Act (BilMoG) to 1.1.2010 short to medium term. BilMoG forces to reconsider in the financing behavior, is sure Werner Rofner by the law firm Rofner & colleagues from Rosenheim. The BilMoG has been mandatory in force since January 1, 2010.

Target is an approximation of the German balance sheet law on international accounting rules (IFRS). As a result the assets, financial and earnings situation in the commercial financial statements represented more realistic. Especially in the sector of occupational retirement provision (bAV), it comes in the balance of trade for the valuation of pension obligations to significant changes, explains Werner Rofner. The means that even Pensionsruckstellungenen are affected. That’s changing: pension provisions are valued in the balance of trade realitatsbezogener. The to be average interest rate market, which month is announced by the Bundesbank, usually leads to significantly higher balance sheet values. The 6a acquired previously from the tax balance sheet value usually far too low provisions displays for the trade balance according to BilMoG.

To the realistic valuation of pension obligations salary developments into account cost increases and pension trends are in the future. To the relief of the company due to the BilMoG additions to provisions for 15 years may be distributed but the rest is shown in the annex to the balance sheet. It introduced a balancing-out bid of pension provisions and supply-linked assets, E.g. in the form of a pledged insurance. The handelsbilanzielle profit, which can lower by the BilMoG, is the basis for the Payout. Potential impact on companies: the allocations to the pension provisions have a direct impact on business outcomes. The handelsbilanzielle profit decreases, however, the profits according to the tax balance sheet is taxed. The Basel II rating (creditworthiness) can deteriorate. At 31, it’s too late! What was once said to, can not take back after decades. Can however paid the promised performance not in full amount of the funds for the pension commitment as such as an insurance be paid in, the missing shares from its current assets should be denied. Werner Rofner: “such a situation can in the worst case lead to the insolvency of the company or at least accelerate it.”Check the option of balance of optimized customizing and you include a bAV experts, recommends the bAV specialist Rofner, goal-oriented and professionally to tackle the further steps: you analyze the pension commitments holistic content, employment and fiscal weaknesses. Determine the financing rates to the funding of pension plans in the company. Examine the possibility of future on-balance sheet netting by supply-bound assets and thereby take advantage of the positive effects with improve of the figures in the company. Substantive defects, as well as financing deficits to eliminate companies now using the new holistic consulting offering of the Rofner & colleagues law firm. “We will accompany our clients with internal and external specialists in labour law and tax law legally binding through the entire process of the examination and pension commitments existing adaptation or spin-off,” emphasizes the bAV specialist Rahmani. Contact: law firm Rofner & colleagues owner Werner of shafiqur Rahman Oberaustrasse 34 83026 Rosenheim Tel.: 0700 0700 1230 (12 ct / min) fax: 0700 0700 1231 (12 ct / min) E-Mail: