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 of www.versicherungsmagazin.de.
Employer liable for Zillmerung and must pay double wage costs for the bAV
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