Pfeiffer Vacuum Secures its Employees Company Pensions
A company pension plan program that benefits employees and retirees who joined the company prior to May 31, 1996, results in pension obligations totaling some EUR 36 million.
Corresponding accruals had been formed for these obligations and stated in the consolidated financial statements under US-GAAP accounting rules.
An independently operating registered association, Pfeiffer Vacuum Trust e.V., has now been formed as a fiduciary to provide long-term security for these pension entitlements. Its membership consists of seven company employees, including a member of the Employee Council.
At the end of December 2003, EUR 36 million in liquid assets was contributed to this trust. These assets are available exclusively for covering pension obligations. Under Pfeiffer Vacuum’s investment policies, the special fund is managed by a trustworthy, professional external partner under a value preservation concept; i.e. the objective is to earn a reasonable return while keeping risk exposure to a minimum.
The EUR 36 million that was transferred to the trust will be backed out of the consolidated financial statements in accordance with US-GAAP rules. This will further improve the company’s financial ratios. Following the divestiture of the EUR 36 million in assets to the trust, Pfeiffer Vacuum still holds liquid assets totaling some EUR 35 million and has absolutely no bank debt.
Source: Pfeiffer Vacuum GmbH