Old provisions

The conditions in the old termination provisions are valid for employees who began service before 1.1.2003.  

In the old provisions the pension mainly works with reserves and securities. As the termination rights of long-term employees can be up to one year’s salary we recommend that you also take out additional termination insurance in order to avoid financial distress in the event of terminations.

s Abfertigungs-Vorsorge - Version 1: Financing terminations
The s Abfertigungs-Vorsorge gives you sufficient liquid funds to fulfil your termination obligations if required.

Your advantages:

  • Better planning in the company as insurance premiums remain constant
  • Insurance premiums are a profit-reducing business expense
  • Securing personal liability for sole proprietors
  • Increased company value in the event of sale

The Details:
Financing of termination claims in accordance with the old termination law (‘old’ provisions) with only 6% taxed termination payment for employed family members – can serve as a flexible nest egg if needed and is a realisable form of security at all times

s Abfertigungs-Vorsorge - Version 2: exclusion insurance
The exclusion insurance in accordance with Rz 3369a EStR as a version of the s Abfertigungs-Vorsorge provides you with sufficient liquid funds in order to spin off termination claims.

Your advantages:

  • Sustainable tax saving
  • Low future liquidity load
  • Ability to plan financing of old termination claims
  • No activation obligation of the exclusion insurance in the company
  • Improved balance sheet ratio: improved equity ratio and overall capital profitability and no reserves for social capital in the trade balance

Services at a glance:

  • Financing of termination claims according to the old termination law (‘old’ provisions)
  • Suitable primarily for companies with accounting in accordance with international principles and municipalities

Your customer advisor at Erste Bank or Sparkasse would be pleased to provide you with information on these pension versions.