German engineering firm Bosch has transferred its Austrian pension plan to the €10.4bn VBV Pensionskasse after regulations stopped its initial aim of consolidating funds in Germany.
At the end of 2018, Bosch decided to consolidate its existing pension plans and to implement a new defined contribution pension plan, covering approximately 2,000 employees of various subsidiaries in Austria.
The company initially intended to fund pension obligations through a company-owned Pensionsfonds vehicle domiciled in Germany.
However, after several months of planning, including feasibility studies on how the German Pensionsfonds could operate cross-border, Bosch decided to put the project aside.
“We wanted to create a harmonised pension provision for all affected subsidiaries in Austria, funded by the Bosch Pensionsfonds,” a spokesperson told IPE.
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