UK Pensions: Regulator’s annual DB funding statement urges collaboration to meet COVID-19 challenges

By Lesley Harrold on May 1, 2020 Posted in UK

On April 30, 2020, the Pensions Regulator published its 2020 funding statement for defined benefit (DB) schemes with valuation dates between September 22, 2019, and September 21, 2020. However, these COVID-19 times are challenging for all businesses, and the effects of the pandemic are relevant to all DB schemes.

The statement urges collaboration between trustees and employers to manage scheme funding impacts and to maintain a focus on the long term, particularly regarding planning and risk management. With the uncertainty of the COVID-19 crisis, effects will be marked on both the short-term business impact of the lockdown … Continue Reading

Bilanzsteuerrechtliche Risiken bei älteren Betriebsrentensystemen

By Claudia Posluschny and Frank Weberndörfer on November 9, 2017 Posted in Europe, Germany

Ältere Versorgungsordnungen nehmen hinsichtlich des Anspruchsbeginns häufig nicht ausdrücklich auf die aktuelle gesetzliche Regelaltersgrenze Bezug, sondern verweisen nach wie vor auf die starre Altersgrenze von 65 Jahren. Gleichwohl erbringen die meisten Unternehmen in der Praxis erst ab dem gesetzlichen Regelrentenalter Versorgungsleistungen und bilden auch ihre Rückstellungen entsprechend. Fallen folglich Schriftform und Rückstellungen auseinander, so kann dies zukünftig unangenehme steuerliche Auswirkungen haben. Die so gebildeten Pensionsrückstellungen werden künftig nicht mehr anerkannt, sondern sind gewinnerhöhend aufzulösen. Die erforderlichen Anpassungen der Versorgungsregelungen sind ggf. nur noch bis zum Ablauf des aktuellen Geschäftsjahres möglich.

Bislang unproblematisch: Starre Altersgrenze von 65 Jahren in Versorgungsordnungen

Verweisen … Continue Reading

Case Brief: On deduction of pension benefits from wrongful dismissal damages

By Michael Torrance on October 14, 2014 Posted in Canada, General

In August 2011, the British Columbia Court of Appeal held that pension benefits received by an employee during the reasonable notice period were not to be deducted from wrongful dismissal damages for that period: 2011 BCCA 337. A 7-member majority of the SCC agreed with that approach in IBM Canada Limited v Waterman, 2013 SCC 70.

The majority noted that, under what has been described as the ‘private insurance exception’, a benefit received by the employee is not generally deducted from wrongful dismissal damages if (a) the benefit is not in the nature of an indemnity for the loss caused … Continue Reading