GERMANY - The German government is set to be the short-term beneficiary this year of plans to securitise Deutsche Post and Deutsche Telekom's liabilities to the Post-Pensionskasse, the scheme that covers ex-employees of the two part-privatised companies, together with those of Post Bank.
Under the terms of Post’s and Telekom’s privatisation agreements, two thirds of pension liabilities are covered by the state and one third by the companies. Last year the companies paid in e809m and e664m respectively.
State contributions have been projected at around e18bn between now and 2090, but the one-off increase in income from securitisation will reduce the payment it will be obliged to make for the coming year.
A spokesman for the Finance Ministry said that the decision to securitise had been reached by the Postbeamtenversorgungskasse (PBV), the legal entity that owns the Post-Pensionskasse, an association of representatives from the three companies and of pensioners, who had made the decision based on favourable market conditions.
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