Jurisdiction on pension schemes to be corrected

As was already reported by MittelstandsBlog.de on several occasions before (March 3rd and April 4th), there was the danger for self-employed managing-partner directors of private limited companies of having to pay retroactively contributions to pension schemes. These payments, according to many experts, would have had business threatening effects on small and medium-sized companies.

On the occasion of today┬┤s termination of the discussions concerning the accompanying budget law 2006, Dr. Ralf Brauksiepe, member of Parliament and chairman of the work group “Arbeit und Soziales”, and Dr. Michael Fuchs, member of Parliament and chairman of the “Parlamentskreis Mittelstand” group of the CDU/CSU parliamentary party, said that today was a good day for small and medium-sized companies: The jurisdiction by the Federal Social Court (verdict Az B 12 RA 1/04 R) on the obligation of self-employed managing-partner directors of private limited companies to make contributions to pension schemes would be corrected. The corresponding correction of the law was the subject matter of an amendment which had been introduced by the governing parties to the expert committees of the German Parliament. This meant that the practice by the social security institutions would not change in this respect, which means that companies would have the legal certainty which they urgently need. GERMAN