Private mergers and acquisitions in Panama | Pensions

Authors:

María de Lourdes Marengo

Nadya Price


Q&A guide to private mergers and acquisitions law in Panama.


The Q&A gives a high level overview of key issues including corporate entities and acquisition methods, preliminary agreements, main documents, warranties and indemnities, acquisition financing, signing and closing, tax, employees, pensions, competition and environmental issues.


Chapter 3: Pensions

Pensions


33. Do employees commonly participate in private pension schemes established by their employer? If an employee is transferred as part of a business acquisition, is the transferee obliged to honour existing pension rights or provide equivalent rights?


Private pension schemes

Private retirement and pension plans are voluntary and complementary to the social security programme managed by the government, for which registration is compulsory. In a business acquisition where the company has private pension schemes in place, the purchaser must honour the existing pension rights and claims.


Pensions on a business transfer

Pensions must not be affected in a manner prejudicial to employees on a business transfer.



Previous chapter: Consideration and acquisition financing

Next chapter: Competition/anti-trust issues



First published in Thomson Reuters - Practical Guides.

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