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Was Ist Ein Contractual Trust Agreement

In Uncategorized on December 20, 2020 at 7:06 am

In their attempts to ensure the liquidity needed for their operations, companies are currently looking for sources of internal liquidity. Trust trust trusts and trusts (CTAs) are sometimes identified as a potential source. To this end, the agent should return the corresponding CTA assets to the company. The outsourcing of pension provisions for accounting purposes assumes that the fiduciary assets that the agent contributes to the CTA, based on the applicability of the German gaAP/HGB or IFRS accounting approach, meet the balance sheet requirements as clearing hedging assets (Article 246, paragraph 2, second sentence) or as assets of the compensation scheme (IAS 19.8). One of the common characteristics of the two accounting approaches is that the ability to compensate require, among other things, that the conditions of exclusivity of purpose and the prohibition of handover be met. The exclusivity of the object assumes that the loyalty credit provided by the Trustor to the CTA can only be used to satisfy the rights of the beneficiaries. The broadcasting ban provides that the return of the trust to Settlor is in principle excluded and can only be carried out in exceptional cases as a return resulting from overpayment or reimbursement of payments already made by settlor to the beneficiaries. In today`s financial and economic environment, companies are sometimes looking for ways to retransmit trust funds, even in the case of CTA that are not fully funded. The starting point for these transfers is the modification of the purpose of the exclusivity of fiduciary assets into insolvency protection only for the parties of the beneficiaries` pension rights that are not covered by the statutory protection against insolvency provided in Article 7 of the BetrAVG title. As a general rule, the change in the exclusivity of the purposes has an impact on the status of the beneficiaries of the Guarantee Fund and the resulting amendment to the trust agreement must normally be approved by the beneficiaries. When an enterprise committee has been elected by the employer, the employer will in practice seek the anchor of the pensioners` agreement by reaching an agreement with the Works Council on the modification of the trust contract that the Works Council concludes as a representative and for the beneficiaries of the pension. Careful analysis must be conducted, particularly when companies are considering the transfer of trust assets from an underfunded ATC.

In any event, both the company`s legal advisors and the company`s statutory auditor should be involved in the planning and effective implementation of any changes to the CTA, in order to ensure both legal implementation of labour law and further compensation of pension obligations with the remaining assets as assets of the plan or hedge after accounting provision. In isolated cases, a handover (of a portion of assets) to strokes can help improve the company`s liquidity position as an agent. The admissibility of such a retrocession under labour law and accounting depends, on a case-by-case basis, on the content of the trust contract and the legal basis of the occupational pension obligation with the pension rights guaranteed by the CTA. Contractual trust agreements or, in short, ACCORDS are the standard instrument for financing pension obligations in the form of direct commitments. From the employer`s point of view, it is primarily the taking of balance sheet, but also the private protection against insolvency of pension rights which are not covered by the legal protection against insolvency (through the PSV) according to S. Sec.