Direct pension liabilities result from pension promises within an occupational pension scheme funded through pension provisions. In Germany, this is the predominant choice of funding. Typically, old age, disability and surviving dependant benefits are covered. Due to the upcoming demographic change, the unfavourable impact on corporate ratings and the additional non-operating risks the advantageousness of internal funding has been called into question recently. In consequence, most major German listed companies have turned to external funding, e.g. through pension funds.
Aim of this thesis is to examine from an financial point of view, to which extend outside funding for existing pension promises can be beneficial for midsized, mostly non-listed companies and to determine which funding vehicles are suitable.
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Direct pension liabilities result from pension promises within an occupational pension scheme funded through pension provisions. In Germany, this is the predominant choice of funding. Typically, old age, disability and surviving dependant benefits are covered. Due to the upcoming demographic change, the unfavourable impact on corporate ratings and the additional non-operating risks the advantageousness of internal funding has been called into question recently. In consequence, most major German...
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