Pension Buyout
A sustainable solution for your pension obligations.
Funding Solutions assumes occupational pension obligations permanently and in full - with full transparency and a proven track record as Germany's leading governance and consolidation platform.
Background
Pension obligations in focus.
Occupational pension obligations weigh on corporate balance sheets and tie up significant controlling and management capacity. This applies in particular to volatile defined-benefit liabilities and the associated risks such as longevity and inflation. The Pension Buyout is an internationally established instrument for the complete transfer of pension obligations. In the UK and the US in particular, this model has been used successfully for decades - in the UK alone, over GBP 50 billion of pension obligations were transferred to specialised providers in 2024.
In Germany, implementation takes place via the pensioner company ("Rentnergesellschaft") - a model in which pension obligations towards inactive beneficiaries are transferred fully and permanently to a specialised provider under German transformation law (Umwandlungsrecht). With appropriate structuring of the Rentnergesellschaft, the sponsor is released from the obligations in balance sheet, operational and legal terms and can focus on its core business. The Pension Buyout covers not only direct pension commitments (Direktzusagen) but all funding vehicles under German occupational pension law - including indirect commitments via Pensionskassen, Pensionsfonds, reinsured support funds (Unterstützungskassen) and funded obligations. The transaction structure is tailored to the specific pension landscape of each company.
Funding Solutions has established this model in Germany and, as the first provider, built a scalable platform with a clear focus on institutional governance. The combination of a strong governance framework, proven transaction structure and independent asset management creates the conditions for a secure and sustainable transfer on competitive terms.
Terminology
Various terms are used internationally for this model: Pension Buyout, pension liability transfer (PLT), pension risk transfer (PRT) or buyout via Rentnergesellschaft. On this page, we use the term Pension Buyout throughout.
Balance Sheet Relief
Following the transfer, pension provisions and plan assets are fully derecognised from the balance sheet. Under IFRS, this can either take the form of full derecognition at closing, or a two-stage relief - split into the phases of years 1-10 and from year 11 onwards.
Operational Relief
HR, Finance and Legal are permanently relieved of administration, reporting, beneficiary management and investment oversight. The Pension Office of Funding Solutions assumes all tasks related to occupational pensions on a permanent basis.
Legal Relief
The pensioner company enables a sustainable transfer of pension obligations - legally, economically and operationally. No other vehicle in Germany offers this comprehensive transfer of the subsidiary liability (subsidiäre Einstandspflicht).
Track Record
Germany's leading platform
for Pension Buyouts.
17,500+
Managed occupational pension commitments
600m+
EUR of assumed pension obligations
12
Pensioner companies on the platform (as of 2026)
Recent Transactions
All Insights →Implementation
Structured process in four phases.
Every transaction on the Funding Solutions platform follows a proven four-phase process. From the initial strategic analysis to the handover to the Pension Office, the process typically takes 6 to 9 months.
Throughout the entire process, the company is supported by a dedicated project team comprising actuaries, lawyers and transaction specialists. Close coordination with all stakeholders on the company side ensures that the transaction is executed smoothly and within the agreed timeframe.
Target Structure
Assessment of the status quo and definition of the intended transaction structure.
Together with the company, the strategic objectives and the project framework are defined. The result is a target structure agreed with all stakeholders as the basis for further structuring.
- Goal assessment
- Balance sheet, tax and operational objectives of the company, matched against what a pensioner company can deliver.
- Overview of schemes
- Inventory of commitments and funding vehicles: direct commitments, support funds, Pensionskassen and Pensionsfonds.
- Stakeholders
- Involvement of HR, Finance, Legal, employee representatives and auditors on the company side.
- Project scope
- Definition of the project scope and allocation of roles between sponsor and Funding Solutions.
Pension Due Diligence
Actuarial, legal and tax review of the obligations to be transferred.
We analyse all relevant dimensions of the pension obligations to be transferred and capture history and commitment structure precisely - the basis for the permanent ability to pay all benefits.
- Actuarial analysis
- Valuation of pension commitments, biometric risks, pension adjustment risks and mortality; derivation of the capitalisation requirement.
- Legal review
- Analysis of commitment documents for completeness, identification of liability and other legal risks.
- Structuring
- Assessment of the optimal transaction structure to meet corporate objectives, including tax considerations.
- Result
- Indicative capitalisation figure as the basis for transaction negotiations.
Pensioner Company Design
Customisation of your pensioner company on the basis of our toolkit.
Drawing on our toolkit of proven modules, the pensioner company is tailored to the commitment landscape and the objectives of the company - through to execution readiness.
- Funding structure
- Capitalisation, transfer of plan assets and reinsurance policies, design of the trust arrangement.
- Governance elements
- Golden Share, customised reporting to the former sponsor, participation in the Investment Committee.
- Legal form
- Choice of transfer route (spin-off, carve-out) and preparation of all notarial and registration steps.
- Final scope
- Definition of the final transaction scope and the investment strategy.
Execution
Documentation, notarisation, asset transfer and handover to the Pension Office.
The documentation package is prepared, finalised and executed in line with the agreed scope. After closing, the Pension Office of Funding Solutions assumes permanent administration.
- Documentation
- Preparation and finalisation of the documentation package: transformation agreement, trust agreement, articles of association, beneficiary communication.
- Completion
- Notarial certification, commercial register entry, asset transfer and integration of beneficiaries.
- Statutory deadline
- Under German transformation law, the transaction must be completed no later than eight months after the underlying balance sheet date. For a 31 December balance sheet date this means: signing by the end of August.
- Handover
- Transition into ongoing administration by the Pension Office - the sponsor is finally released.
Timeline
Implementation Timeline
6 to 9 Months
From the initial advisory meeting to the handover to the Pension Office - with dedicated project managers at your side. The timeline is driven by the company's balance sheet date and the statutory deadlines under German transformation law.
- Month 1-2
- Target structure, project framework and stakeholder alignment.
- Month 2-4
- Pension due diligence and indicative capitalisation figure.
- Month 4-6
- Design of the pensioner company and negotiation of the documentation.
- Month 6-9
- Signing, notarisation, register entry, asset transfer and handover to the Pension Office.
Under German transformation law, the transaction must be completed no later than eight months after the underlying balance sheet date. For a 31 December balance sheet date this means: signing by the end of August.
Phase 01
Target Structure
Together with the company, the strategic objectives and the project framework are defined. The result is a target structure agreed with all stakeholders as the basis for further structuring.
- Goal assessment
- Balance sheet, tax and operational objectives of the company, matched against what a pensioner company can deliver.
- Overview of schemes
- Inventory of commitments and funding vehicles: direct commitments, support funds, Pensionskassen and Pensionsfonds.
- Stakeholders
- Involvement of HR, Finance, Legal, employee representatives and auditors on the company side.
- Project scope
- Definition of the project scope and allocation of roles between sponsor and Funding Solutions.
Phase 02
Pension Due Diligence
We analyse all relevant dimensions of the pension obligations to be transferred and capture history and commitment structure precisely - the basis for the permanent ability to pay all benefits.
- Actuarial analysis
- Valuation of pension commitments, biometric risks, pension adjustment risks and mortality; derivation of the capitalisation requirement.
- Legal review
- Analysis of commitment documents for completeness, identification of liability and other legal risks.
- Structuring
- Assessment of the optimal transaction structure to meet corporate objectives, including tax considerations.
- Result
- Indicative capitalisation figure as the basis for transaction negotiations.
Phase 03
Pensioner Company Design
Drawing on our toolkit of proven modules, the pensioner company is tailored to the commitment landscape and the objectives of the company - through to execution readiness.
- Funding structure
- Capitalisation, transfer of plan assets and reinsurance policies, design of the trust arrangement.
- Governance elements
- Golden Share, customised reporting to the former sponsor, participation in the Investment Committee.
- Legal form
- Choice of transfer route (spin-off, carve-out) and preparation of all notarial and registration steps.
- Final scope
- Definition of the final transaction scope and the investment strategy.
Phase 04
Execution
The documentation package is prepared, finalised and executed in line with the agreed scope. After closing, the Pension Office of Funding Solutions assumes permanent administration.
- Documentation
- Preparation and finalisation of the documentation package: transformation agreement, trust agreement, articles of association, beneficiary communication.
- Completion
- Notarial certification, commercial register entry, asset transfer and integration of beneficiaries.
- Statutory deadline
- Under German transformation law, the transaction must be completed no later than eight months after the underlying balance sheet date. For a 31 December balance sheet date this means: signing by the end of August.
- Handover
- Transition into ongoing administration by the Pension Office - the sponsor is finally released.
Governance
Maximum Transparency
Our business model is entirely transparent. This extends from the project phase through the design of the pensioner company to ongoing operations.
Pensioner Company Toolkit
An individual buyout solution for your pension landscape: draw on our experience and use ready-made, proven modules for governance and reporting.
Consolidation Platform
Pensioner companies are held separately until a minimum threshold is reached. Assets remain segregated until full run-off. Segregation is implemented through reputable external CTA trustees.
The security standard for beneficiaries and sponsors.
The governance structure of Funding Solutions is designed to permanently protect the interests of all parties involved - beneficiaries and transferring companies alike. At its core is a capitalisation structure within a governance framework that puts the secure payment of pension benefits first. The legal and economic segregation of assets is implemented through an external CTA trust.
The objective of the investment strategy is the fulfilment of pension commitments including all inflation adjustments - not the maximisation of distribution potential. This requires a transparent and clearly defined remuneration structure. Our investment philosophy is therefore liability-driven, with a clear de-risking path as funding levels increase. Implementation is delegated to institutional asset managers, with ongoing monitoring by our Investment Committees.
Our implementation experience allows us to draw on an extensive toolkit of structuring options. Modules such as the use of a Golden Share, financing structures, tailored reporting or the option to attend Investment Committee meetings are established practice on our Funding Solutions Governance Platform.
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