In many countries, including France and Germany, the law requires companies to grant benefits to employees at retirement. These benefits are often provided for in the form of book reserves. For companies complying with international accounting norms such as US GAAP or IFRS, such reserves are clearly regulated. They represent liabilities that must appear on the local balance sheet, and obviously there is a cost associated with this.
Book reserves for pension obligations can be externalised
Swiss Life has a solution designed to help companies to better plan, monitor and manage the expenses for these pension obligations: Externalise the book reserves, and as a result take the burden off the books.

Multiple advantages
Swiss Life’s solution allows companies to:
- Relieve their books of liabilities and strengthen the balance sheet
- Separate their pension obligations from their business
- Secure the benefits promised to employees by out-placing them to a trusted and secure insurer, thus complying with modern corporate governance standards.

In France, Swiss Life provides, in addition to externalisation of pension obligations, actuarial consulting on the IFRS 19 requirements and the French retirement reform (“Fillon Law”). It is worth noting that in addition to the advantages outlined above, externalising book reserves is also highly tax efficient.

In Germany, Swiss Life Pensionsfonds AG (a 100% subsidiary of Swiss Life Germany), offers solutions to take over such pension plans as an external carrier in accordance with the new fiscal legislation of 2003. This enables companies to externalise their book reserves in a tax-neutral way.