The Christian Democrat-led grand coalition has reactivated the process to reform a pension system hit by high costs and an ageing population. The process will follow two main paths: on one side reinforcing statutory pensions, which remain the central and most important pillar, and on the other side nudging people towards occupational and private pension savings.
The collapse of Germany’s three-party coalition last year left behind a backlog of laws and proposals on pensions. What happens now?
Pension fund/entity | Assets (€’000)
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Mercedes-Benz divests Nissan stake; Evonik considers extending DC plan; Lufthansa pilots push back against DC offer
The firm aims to grow its business with institutional investors by leveraging its know-how in private equity
Association Vereinigung Cockpit says pilots will receive a lower pension compared to their colleagues in the old system
The German speciality chemicals company is also pushing for employees to sign up for a capital market-oriented occupational pension
Current disruptions in industries are prompting companies to rethink their structures, with offloading pension liabilities as part of the process
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As at 31.12.24, *30.9.24, **29.11.24, ***30.12.24, ****31.12.23
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The pension buyout market in Germany is gradually evolving. Transactions to transfer companies’ liabilities to pension corporations (Rentnergesellschaften), the vehicle used for buyout deals, have occurred regularly in the first half of this year.
Germany’s Christian Democratic Union (CDU) and Christian Social Union (CSU) parties, together with the Social Democratic Party (SPD), have now entered negotiations to form a new ‘grand coalition’ government
Mercedes-Benz divests Nissan stake; Evonik considers extending DC plan; Lufthansa pilots push back against DC offer
The firm aims to grow its business with institutional investors by leveraging its know-how in private equity
Association Vereinigung Cockpit says pilots will receive a lower pension compared to their colleagues in the old system
The German speciality chemicals company is also pushing for employees to sign up for a capital market-oriented occupational pension
Current disruptions in industries are prompting companies to rethink their structures, with offloading pension liabilities as part of the process
AWO and ver.di chose the Metzler Sozialpartner Pensionsfonds – one of the pension vehicles set up by German bank Metzler – to provide the DC plan
The German car maker held a 3.8% stake in Nissan, valued at just under €300m
BVI, the German Investment Funds Association, says that despite asset growth, new business for ESG funds remains challenging, particularly among private investors
GEW, an education trade union, decided to join existing social partner models to DC pension plans for employees in private schools and universities
The provisions on auto-enrolment in the draft bill in particular fall short, according to WTW specialists