Credit insurance
Page changed Tuesday, November 02, 2010
Securing pension commitments can be done in a variety of ways. Securing means that the future payment of employee pensions is guaranteed somehow.
As tax deductibility rights are usually preferred by employers, some of the fiscally approved methods are usually adopted. They include:
- Deposit into an account in combination with credit insurance or bank guarantee
- Contributions to a pension foundation
- Premiums for occupational pension insurance
A credit insurance with PRI Pensionsgaranti allow a company to retain pension capital in the business instead of paying premiums to an insurance company.
The employees’ pensions are guaranteed in case of a company default.
By financing pensions via the book reserve system a company can invest the pension capital where it is best suited for the purpose avoiding frictional costs linked to an insurance solution.