After several months of delays, the Spanish cabinet has approved the regulation on the externalisation of pension funds that will come into force 20 days
after its publication. It regulates companies’ obligation to externalise
pension commitments with their employees.
Spanish companies must formalise those commitments by January 2001 and put their pension provision into a qualified pension plan or collective insurance contract. Some companies will opt for combining the two instruments.
Manuel Alvarez Rodríguez of insurer group Caser, says that the market reaction to the new legislation is good.
“Until now, no company was interested in the externalisation of its pensions funds,” he says. He adds that the main beneficiaries of this new scenario will be pension plans of small and medium size companies. Paula Garrido