Initial situation: Statutes of limitations for capitalized claims of the Pensions Security Association
The question of the applicable statute of limitations for capitalized claims of the Pensions Security Association (PSV) is of considerable importance for insolvency administrators, employers, and affected beneficiaries. The Federal Labor Court (BAG) examined this issue in detail on January 23, 2024 (Case No.: 3 AZR 45/24), and made a decisive determination in favor of the Pensions Security Association. In practice, the insolvency of employers regularly creates gaps in company pension schemes, which the PSV is required to compensate pursuant to the Company Pensions Act (BetrAVG). The ruling provides substantial clarity for various parties involved, particularly regarding the enforceability of corresponding recourse claims and their related rights and obligations.
Legal framework: The Pensions Security Association and its responsibilities
Role and function of the PSV
The PSV, as the provider of statutory insolvency protection for occupational pensions in the event of company insolvency, is obliged to take over promised benefits for eligible employees and survivors. In return, under Section 9 (2) Sentence 1 BetrAVG, the PSV has recourse claims against the insolvency administrator or the insolvency estate under certain circumstances. These claims include the value of the obligations assumed, with the PSV’s beneficiary payments being capitalized.
Capitalization and enforcement of claims
PSV’s recourse is generally exercised by means of a claim capitalized as of the date of insolvency proceedings’ commencement. The fundamental question of which statute of limitations applies to this civil law claim had not yet been definitively clarified in literature and case law. The decisive factor for determining the limitation period is the doctrinal classification of the claim arising from the statutory insurance system.
Federal Labor Court ruling of 23/01/2024: 30-year statute of limitations
Key aspects of the decision
The BAG determined that a 30-year statute of limitations pursuant to Section 197 (1) No. 3 BGB applies to capitalized claims of the PSV against the insolvency estate. As reasoning, the court stated that the PSV claim constitutes a “legally established claim” within the meaning of the provision, since the amounts are either established with legal effect in the insolvency proceedings or formalized via a court decision ending the proceedings.
In particular, the BAG emphasized that the occurrence of the insurance event (employer insolvency) and the subsequent assumption of pension liabilities by the PSV do not create ordinary contractual claims. The capitalization of future pension benefits does not substitute for an ongoing payment but instead replaces it with a one-time, definitively calculated sum—clearly distinguishing it from annuity claims under Section 197 (2) BGB.
Implications for the parties involved
As a direct result of this judgment, the PSV has a significant period available to enforce its claims against the insolvency estate. Insolvency administrators and creditor groups therefore have increased planning and risk certainty, particularly since insolvency estate obligations are often settled over several years.
Practicality and significance for economic actors
Effects on companies and insolvency administrators
All companies that provide pension commitments for employees through support funds or direct promises and become subject to insolvency proceedings now have clarity regarding the duration of potential recourse claims from the PSV. Insolvency administrators must ensure long-term accrual planning and deadline compliance when dealing with company pension claims, as the PSV may assert its claims over a span of three decades.
Relevance for pension beneficiaries
Legal certainty also grants a measure of planning security to individuals with entitlements to company pension benefits. The PSV’s recourse claim serves to ensure the sustainable protection of company pension schemes and thereby strengthens employees’ and survivors’ trust in insolvency protection.
General economic law implications
The BAG’s ruling contributes to consistent interpretation of limitation provisions at the intersection of insolvency law and occupational pension law. Binding guidelines emerge for future judicial and extrajudicial disputes that must be comprehensively observed by all parties involved.
Assessment and outlook
The decision of the Federal Labor Court of January 23, 2024, provides urgently needed legal certainty at the interface of labor law, insolvency law, and occupational pension law. The binding assignment of the 30-year statute of limitations significantly strengthens the position of the Pensions Security Association. Nonetheless, it remains to be seen how future case law and practice—especially in distinguishing from other types of claims—will develop.
Comprehensive knowledge of the relevant regulations and careful analysis of the individual situation are essential for companies and insolvency administrators alike. For further legal questions on insolvency and pension matters, the nationwide and internationally active team of MTR Legal Rechtsanwalt is available.
