bAV: Insolvency protection through security deposit for the working time account

by Alfons-Maria Gracher, credit and surety broker (Trier), banker ( and Johannes Fiala, lawyer (Munich), banker (
Time value account and part-time work for older employees: The protection of credit balances from part-time work for older employees as well as time value accounts is a legal obligation of the employer, cf. § 8a ATG and § 23 d SGB IV. The decisive factor is that, according to the statutory provisions, “credit balances including the employer’s share of the total social security contribution” must be protected against insolvency.
Insolvency protection: There are numerous models for insolvency protection ? the intermediary would do well to put legal certainty to the test. Finally, there is a risk for the employer that both partial retirement agreements and working time accounts will not be recognized later on during a company audit. In the case of pledging in particular, as well as trust models, experts sometimes see considerable legal risks, not least for the intermediary.
Protection by guarantee: In the Federal Republic of Germany, several 100 million euros of guarantees are provided annually to protect employees. Professional coverage provides each employee, individually and personally, with a maximum amount guarantee to protect the value credit as it accumulates during the work phase until the incident occurs.
Reinsurance by a partial surety: In practice, the individual sureties are then added together. This then results in a commitment on the part of the employer, i.e. a total credit limit, as it were. For this amount, some intermediaries would then like to sell the employer more or less suitable investment products. But this is unnecessary. Partial collateralisation is sufficient.
Internal financing through partial collateral: Depending on creditworthiness, the employer must provide collateral for, for example, 0-30% of the total exposure. For the maximum amount guarantees, the employer pays an annual guarantee fee of about 1-2%. The end result is that the employer can retain, for example, 70-100% of the liquidity in the company (calculated from the gross salary sacrifice in the savings phase plus the employer’s social security contribution).
Solution concept: Such solutions offer the employer internal financing at de facto dream conditions ? compared to, say, a bank loan. Typically, this can of course be combined with any suitable investments. In any case, such concepts are not only introduced to employers by insurance brokers according to the best-advice principle, but also by classic management consultants.

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Dr. Johannes Fiala Dr. Johannes Fiala

Dr. Johannes Fiala has been working for more than 25 years as a lawyer and attorney with his own law firm in Munich. He is intensively involved in real estate, financial law, tax and insurance law. The numerous stages of his professional career enable him to provide his clients with comprehensive advice and to act as a lawyer in the event of disputes.
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