Many companies have implemented comprehensive retirement programs for their employees and management. Direct benefit promises were often selected. The tax favorable accrual of pension reserves as well as design flexibility were important reasons.  As opposed to relying on internal financing by building reserves, companies are now looking for solutions to outsource the financing. A highly flexible and simple solution is a group pension trust, also known as a Contractual Trust Agreement (CTA).

BHF-BANK’s CTA, open for third parties, is tried and tested.  It offers your company the possibility to outsource its pension obligations in a simple and cost-efficient manner by use of a trust model. If you are accounting according to IFRS, US-GAAP or German GAAP (after BilMoG), plan assets can be reported in the financial statements. Plan assets will be invested according to the specific liability situation of your company, meeting your return requirements and risk constraints.

Combining the CTA with a pension fund ("Pensionsfonds") offers additional cost savings and risk management opportunities. We are able to offer both solutions to your advantage.