Global Legislative Developments – September 2017

Ruling from the German Federal Fiscal Court: “fifth” rule cannot be applied to lump sum payment from insurance company

The German Federal Court of Finance (Bundesfinanzhof, BFH) has ruled on an appeal brought by a fiscal authority concerning application of the “fifth” rule to a lump sum payment from an insurance company (BFH ruling X R 23/15, dated 20 Sep. 2016). The ruling from the BFH overturns the contrary decision of the Rhineland-Palatinate Fiscal […]

Global legislative update – January 2017

Current guaranteed interest rate benefit expires 2015

The future benefits payable by the state pension continue to shrink. Which is why the Government is subsidising private initiatives such as company pension plans. An occupational pension scheme can be used to reserve part of your salary for financing your later retirement. One key benefit: lower tax/social security contributions during the accumulation phase. What […]

PSV 2013 contribution factor

The Cologne-based German Pension Insurance Association (PSVaG), which assumes occupational pension payment obligations for insolvent employers, has set its 2013 premium rate at 1.7 (2012: 3.0 per 1,000). This year, German businesses must therefore pay a significantly lower sum to secure pension insurance for insolvent firms than was the case last year. The premium rate […]

German Federal Labour Court (BAG) interprets company pension commitments: despite pension promise at 65, payments from 67 (BAG ruling 15/05/2012, 3AZR 11/10)

In its ruling dated 15/05/2012 (3AZR 11/10), the BAG decreed that retirement benefits from a company pension scheme are not payable until the person attains the statutory retirement age (67 years) — despite the explicit specification of 65 years as the age at which the person qualifies for a pension. Contrary to the majority opinion […]

Changes in IAS 19 Employee Benefits (2011) – new rules for the recognition of benefits paid to employees according to IFRS

On 16 June 2011, the International Accounting Standards Board (IASB) published a revised version of IFRS Standards IAS 19 (2011), which governs the recognition of benefits paid to employees. Changes from the previous version of IAS 19 (2008) primarily affect the recording of actuarial profits and losses, the itemisation of pension expenses and the explanations […]