Liquidation insurance

A liquidation insurance , even liquidation direct insurance is an insurance to vested obligations under occupational pension schemes to replace and ongoing pension payments with discharging effect (so-called structural changes). It is a matter of changing the implementation route with the aim of legally and economically exempting the company concerned .

The prerequisite for the assumption of a pension entitlement or benefit is that the company obliged by the pension commitment ceases its operations and is liquidated , which is evidenced by an extract from the commercial register . The liquidator must regulate all liabilities, including the employees' claims to company pensions .

The one-off premiums for liquidation insurance are deductible as operating expenses, provisions in the balance sheet are to be released to increase profit.

literature

J. Prost / U. Rethmeier "Debt-relieving assumption of commitments to company pension schemes in the event of cessation of activity with subsequent liquidation", DER BETRIEB, issue 36; September 7, 2007, pp. 1945 ff.