Occupational pensions

Luther’s strong team of highly specialised experts offers advisory services tailored specifically to insurance companies, pension providers and pension funds. The service offering encompasses the design of insurance products, including all public procurement law, corporate law and tax law aspects. We also advise our clients on capital investments, with particular emphasis on the tax issues related to investments. In short: the comprehensive expertise of our broadly positioned, highly experienced team for insurance companies and pension providers is at your disposal.

Brochure: Insurance team

We possess a wealth of experience in conducting negotiations and risk assessments for occupational pension systems during M&A transactions, the harmonisation of pension funds and releasing companies from pension obligations in the event of liquidation or company succession. 

• Identification and assessment of risks relating to occupational pensions (pension due diligence)
• Contract drafting in transactions
• Preparation for acquisitions (full funding of pension obligations, transfer to pension funds, etc.)
• Harmonisation of the occupational pension landscape after completion of the sale (post-merger integration)

When unforeseeable events such as pandemics and wars impact costs, the balance sheet or liquidity, occupational pensions can act as an additional tool for stability in many cases. There are numerous flexible ways to improve liquidity, profitability (costs) and balance sheet debt. Choosing the right tool depends on the company’s specific situation, its history and other factors.

Brochure: Financial reserves

We help you to optimise quality and security in all matters concerning the legal administration of your occupational pensions, while minimising your liability risks. We will advise you on all legal aspects and support you in ensuring proper governance, record-keeping and legal compliance.

Brochure: Extended workbench

Compensation packages for executives have come under increasing public scrutiny in recent years, with the dispute surrounding the former director of Rundfunk Berlin-Brandenburg (RBB) and the compensation practices for works council members at Volkswagen AG just some of the latest examples. However, the question of appropriate executive compensation not only affects public corporations and DAX enterprises: small and medium-sized businesses must also comply with numerous requirements when determining compensation levels. We will support you in structuring appropriate and legally compliant compensation packages for directors, board members and executives.

Brochure: Compensation

The “war for talents” is common knowledge, but there is also a “competition for benefits” taking place among employers vying for the best candidates – and, as a result, for the long-term retention of high-performing employees already working in the company. It is therefore worth taking the time to re-evaluate established solutions and to create new, cost-effective tools for employee recruitment and retention. We offer comprehensive advice and support in the design and execution of flexible working time models and attractive additional benefits.

Brochure: War for talents

Occupational pension commitments that a company makes directly to its employees constitute an obligation outside its core business and must be recognised as a pension liability on the balance sheet. External factors such as interest rate developments, inflation and rising life expectancy increase costs. Planning security is lost. If an asset has been set aside, capital market volatility is reflected on the balance sheet. These typically significant and burdensome occupational pension obligations can be eliminated from the company’s balance sheet, protecting it from future fluctuations arising from the development of occupational pension obligations and fluctuations in pension assets. The term for this type of solution is a “pension corporation” (Rentnergesellschaft), in which pension obligations are pooled.

We advise and assist you with the full transfer of liability and accounting obligations to an independent pension corporation. We typically structure this to ensure that the occupational pension is still viewed as a social benefit provided by your company and can remain within your sphere of influence. The employer thus upholds its social responsibility.

• Raising liquidity through occupational pensions
• Improvement of the equity ratio

• Outsourcing of pension obligations
• Establishment of pension corporations (Rentnergesellschaften)
• Release from pension obligations in the event of liquidations and company succession

• Transfer or settlement of pension entitlements, interpretation of pension regulations, pension adjustments
• Structuring, closure, amendment or restriction of pension funds
• Commitments for directors and board members
• Contractual insolvency protection

• Accounting for pension provisions in commercial and tax balance sheets
• Limiting the volatility of provisions
• Transfer of direct commitments to external pension providers
• Establishment and review of Contractual Trust Arrangements (CTA)

• Clarification of (insurance) regulatory issues
• Assessment of insurance products’ suitability for occupational pensions
• Review of general insurance conditions, benefit plans and forms
• Reduction of benefits and closure of coverage gaps