Employer liable for Zillmerung and must pay double wage costs for the bAV

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from the law firm of Dr. Johannes Fiala
A recent ruling by the Regional Labor Court (LAG) in Munich confirms that the offsetting of acquisition costs in the first few years – in particular by zillmerization – is not permissible in occupational pension schemes (bAV) with deferred compensation. Such agreements are null and void – even if the employee was expressly informed about the acquisition costs beforehand. In its reasons, the LAG also assumes that other forms of accounting for acquisition costs – e.g. over the first five years – are also inadmissible due to their zillmer-like effect. (Judgment of 15 March 2007, Case No. 4 Sa 1152106).
(versicherungsmagazin.de (25.04.2006)
Courtesy ofwww.versicherungsmagazin.de.

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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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