German pension equalisation changes likely to hinder providers

first_imgAccording to the new draft of the Ministry of Justice and Consumer Protection, pension providers can demand the external splitting, without the consent of the person entitled to compensation, only “if certain value limits are not exceeded”.The values of “several components” of occupational pensions will have to be summed up with an eye on the limits.“This limits the scope of application of the external division,” Hufer said, noting that it will lead to an increase in internal divisions, administrative efforts and costs for company pension providers.A company pension provider must include the person entitled to compensation in its own pension scheme with the internal division.Klaus Stiefermann, managing director at Aba, the German occupation pension association, agrees: “The changes will make occupational pensions more expensive for companies and pension schemes, adding further burdens, and it is demotivating for the companies.”The draft law tends to grant the interests of persons entitled to compensation “to a very large extent,” he said, adding that its goal is to close “justice gaps at the expense of the providers”. The draft law for the German government to reform the pension equalisation mechanism in case of divorce – Versorgungsausgleich – will likely make pensions providers work harder.“The changes mean more administrative work and thus higher costs for pension providers,” Andreas Hufer, associate director retirement at Willis Towers Watson, told IPE.Employer-funded pension schemes will become more expensive and more complicated, he said, adding that the goal of the government to promote a wider spread of occupational pensions does not match the proposed reform.The Pension Equalisation Act, Versorgungsausgleichsgesetz, was the target of major structural reform in 2009. It foresees an external and internal division of pensions benefits in the event of a divorce to ensure a fair share of pension assets earned during a marriage for the couple. Andreas Hufer, Willis Towers WatsonLimiting the scope of the external divisions can also have an impact on potential positive returns.“Persons entitled to equalisation can receive a higher pension benefit as a result of the external division, compared to an internal division, if choosing the Deutsche Rentenversicherung (DRV), [the administrator of state pension scheme], as the target pension provider,” Hufer said.A person entitled to compensation can lose up to a maximum of 10% of their pension benefit with an external splitting compared to the internal division.But the constitutional court, Bundesverfassungsgericht, ruled that losses caused by the transfer of company pension benefits after a divorce through so-called “external divisions” can be unconstitutional.The reform would also contradict the principles discussed at the time of the structural reform in 2009 relating to reducing the burden for providers, Stiefermann said.“This is not reflected in the increasing complexity, which is also due to the changes proposed in the draft bill,” he said.For Hufer, not only the principle of “burden-neutrality” on pension providers fails with the new bill, but also the costs for compiling information for family courts will double.The new law foresees that the person entitled to equalisation has the option either to accept the value of the equalisation at the time of divorce, receiving a reduced but individual entitlement, independent from the person liable for compensation, or can claim equalisation after divorce.The mechanism of a division based on a capital value in the current law is structurally designed to avoid a further burden on the pension provider, “but a second equalisation mechanism is not”, Hufer added.“A different set of information is required for the two mechanisms. As a result, the pension providers have to do more work to provide information to a family court,” he said.Further changes to Versorgungsausgleichsgesetz have been discussed following the major structural reform in 2009, through a panel of experts in 2017, Stiefermann explained.“Some of the suggestions made there are reflected in the draft. Most of the content in the draft law is thus not surprising, but what was surprising is the timing of the draft: There was no forewarning.” he concluded.To read the digital edition of IPE’s latest magazine click here.last_img read more

COVID-19 continues to spread across state

first_imgStatewide—The Indiana State Department of Health has reported that 370 additional Hoosiers have been diagnosed with COVID-19 Tuesday.  A total of 32,437 Indiana residents have tested positive for the coronavirus.  To date, 235,333 tests have been reported to ISDH at a 13.8% positive rate and 21 new deaths were reported for a total of 1871 Hoosiers have died to date.Decatur County has a total of 224 positive cases and 31 deaths, Franklin County has 106 positive cases and 8 deaths, and Ripley County has 113 positive cases and 6 deaths according to numbers reported to the Indiana State Department of Health.last_img

2014-15 All-SCBL, CPL basketball lists released

first_img Close Forgot password? Please put in your email: Send me my password! Close message Login This blog post All blog posts Subscribe to this blog post’s comments through… RSS Feed Subscribe via email Subscribe Subscribe to this blog’s comments through… RSS Feed Subscribe via email Subscribe Follow the discussion Comments Logging you in… Close Login to IntenseDebate Or create an account Username or Email: Password: Forgot login? Cancel Login Close WordPress.com Username or Email: Password: Lost your password? Cancel Login Dashboard | Edit profile | Logout Logged in as Admin Options Disable comments for this page Save Settings You are about to flag this comment as being inappropriate. Please explain why you are flagging this comment in the text box below and submit your report. The blog admin will be notified. Thank you for your input. There are no comments posted yet. Be the first one! Post a new comment Enter text right here! Comment as a Guest, or login: Login to IntenseDebate Login to WordPress.com Login to Twitter Go back Tweet this comment Connected as (Logout) Email (optional) Not displayed publicly. Name Email Website (optional) Displayed next to your comments. Not displayed publicly. If you have a website, link to it here. Posting anonymously. Tweet this comment Submit Comment Subscribe to None Replies All new comments Comments by IntenseDebate Enter text right here! Reply as a Guest, or login: Login to IntenseDebate Login to WordPress.com Login to Twitter Go back Tweet this comment Connected as (Logout) Email (optional) Not displayed publicly. Name Email Website (optional) Displayed next to your comments. Not displayed publicly. If you have a website, link to it here. Posting anonymously. Tweet this comment Cancel Submit Comment Subscribe to None Replies All new comments Sumner Newscow report — The following are the South-Central Border League and Central Plains League basketball all-league lists for 2014-15:BOYS: SOUTH CENTRAL BORDER LEAGUEFirst TeamNoah Chee, jr., Sedan; Kaden Halling, sr., Caldwell; Isaiahh Loudermilk, jr., West Elk; Colten Ward, so., Caldwell; Derek Williams, sr., Oxford; Tristen Wilson, sr., West Elk.Second teamColton Allemand, sr., Flinthills; Kiefer Brewer, fr., Sedan; Kolten Koerner, jr., Argonia; Colton Massey, sr., Cedar Vale-Dexter; Austin Weber, sr., Udall; Nolan Williams, jr., UdallHonorable mentionJacob Berkley, so., Cedar Vale-Dexter; Timmie Catlin, sr., Oxford; Seth Hemberger, so., Argonia; Grant Loewer, sr., Central-Burden; Jaden Uhls, so., Sedan; Sam Wencel, sr., Caldwell; Damon Wilson, so., West Elk.CENTRAL PLAINS LEAGUEFirst teamTyler burns, sr., Trinity AcademyAlex Carro, sr., Trinity AcademyCameron Hill, sr., Cheney.Cooper Minnick, sr., BluestemTy Patterson, sr., CheneyChris Taylor, jr., IndependentSecond teamMatt Jones, sr., Trinity AcademyMatthew Leddy, sr., Conway SpringsDylan Murphy, jr., Conway SpringsShawn Nulik, sr., ChaparralNate Pauly, so., Garden PlainWeston Schroeder, sr., ChaparralHonorable mentionGage Axline, jr., Medicine Lodge; Garret Berry, sr., Chaparral; Brody Caster, sr., Douglass; Josh Dugan, so., Conway Springs; Brett Gooch, sr., Belle Plaine; Brandon Happy, jr., Belle Plaine; Jacob Johnson, sr., Trinity Academy; Jordan Joplin, sr., Garden Plain; Connor Sevier, jr., Independent.GIRLS: SOUTH CENTRAL BORDER LEAGUEFirst teamFaith Gaddie, sr., Argonia; Alexus Haughn, sr., Sedan; Alyssa Howard, so., Flinthills; Daniele Payne, sr., Oxford; Zoe Pray, sr., Sedan; Paige Turek, jr., South Haven.Second teamIleena Arnett, sr., Caldwell; Carlie Bratcher, sr., Cedar Vale-Dexter; Monica Harris, sr., South Haven; Sayudi Loewer, jr., Central-Burden; Alli Moore, sr., Central-Burden; Chloie Ralls, jr., South Haven.Honorable mentionDemi Ames, sr., Cedar Vale-Dexter; Kaylen Artherton, sr., Cedar Vale-Dexter; Tori Bardsley, sr., Caldwell; Kaitlyn Dvorak, sr., Caldwell; Payton Gawith, so., Flinthills; Kylie Hurt, jr., West Elkl; Bethany Metz, jr., Oxford; Jessica Roggow, jr., Sedan; Hanna Stuewe, so., Caldwell; Braylee Unruh, jr., Sedan; Peyton Weber, fr., Udall.CENTRAL PLAINS LEAGUEFirst teamHaley Albers, so., Cheney; Noelle Dooley, sr., Garden Plain; Sara Echelberry, sr., Conway Springs; Sarah Hajdukovich, sr., Douglass; Madison Schmelzer, jr., Garden Plain; Kaleigh Schrag, jr., Trinity Academy.Second teamAlise Coccetella, sr., Independent; Daylynn Doyle, jr., Garden Plain; Klair Gibson, jr., Douglass; Emily Hrencher, so., Medicine Lodge; Cashlyn Munroe, jr., Douglass; Caroline Zielke, sr., Trinity Academy.Honorable mentionBethany Balzer, sr., Belle Plaine; Taylor Bergman, so., Chaparral; Alicia Carter, jr., Conway Springs; Taylor Denney, sr., Cheney; Erica Ebenkamp, so., Conway Springs; Miranda Harrison, sr., Bluestem; Micala Hollinger, jr., Trinity Academy.Follow us on Twitter.last_img read more