Germany: Pensions and Investment News and Analysis
Latest news and analysis of pensions, asset management, regulation and trends in Germany from our award-winning journalists.
German government cuts funds for first pillar reform
Move comes following a Constitutional Court ruling clarifying ‘debt-brake’ rules
Social partner model on track to expand to ceramics, glass, paper industries
Over 50 companies have already joined the social partner model in the chemical industry
German baking industry starts DC options via BVV Pensionsfonds
The introduction of pure DC options – BVV.MAXRENTE – comes after more than three and half years of negotiations
Country Report – Pensions in Germany (March 2023)
Angela Merkel’s governments largely dodged the political hot potato of first-pillar pension reform, which means the current overhaul to the state system is overdue. But it barely gets to grips with the issues. For one, it does not deal with entitlements or increase the retirement age; second it introduces a funded component that will probably only take effect in the 2030s, when the post-war demographic peak is passing.
Germany’s Growth Fund raises €1bn with Allianz, BlackRock, Generali backing
Over 20 institutional investors allocated capital to the fund, investing in German and European venture capital and venture debt funds
German lifeboat scheme increases members’ contributions
The volume of contributions increased last year to €685m from €242m in 2021
German government to make pension funds join dashboard
The dashboard has so far recorded 1.3 million visitors, and 841,880 inquiries to pension funds from 125,545 registered users
German open-ended Spezialfonds see ‘significantly lower’ inflows, says BVI
Net inflows of open-ended Spezialfonds totalled €27.4bn at the end of Q3 2023, down from €51.71bn recorded in the same period last year
Occupational pension industry disappointed with IG Metall’s social partner model rebuff
The union continues to support company pensions under social partnerships, says MetallRente
German government drafts law to reform second pillar pension system
The 24-point draft law deals with the difficult topic of opening up the social partner model to third parties not bound by collective bargaining agreements
German investors face ESG exclusion/engagement dilemma
The general public might not fully grasp what sustainable investing entails from an investor’s perspective, says KENFO
Investors could do more to boost German start-ups
The German constitutional court’s ruling that the government’s reallocation of €60bn worth of debt to the country’s Climate and Transformation Fund is unlawful was a blow. But there was also also some welcome news last month.
Occupational pensions in German mid-sized companies stagnate, says Generali
Employees are turning away from deferred compensation because of high inflation both in mid-sized firms and in larger companies
Analysis: Germany battles to keep pension reforms on course
New law to replace 2018’s pension reform legislation amid disagreements over reform plans for all three pillars of the pension system
Germany holds talks with Ukraine on pension reforms
The German government has held discussions with the Ukrainian government on forms of bilateral cooperation and mechanisms to help the war-torn country to reform its pension system.
German IG Metall rejects DC schemes
The union is in favour of supplementary, employer-financed company pensions, with guaranteed minimum benefits and employer liability
Inflation hits occupational pensions in Germany, says Deloitte
Inflation is having a bigger impact on employees than the COVID-19 pandemic and the war in Ukraine
Investment associations push Germany on separate infrastructure category
Current rules represent at times a ‘massive restriction’ to alternative investments, says German alternative investments association BAI
Allianz Leben plans selective move on private markets
The firm will increasingly look to opportunities in corporate and government bond investments
Institutional investors shift to bonds, change stance on alternatives
Germany’s first pillar pension reform will affect the fund industry, says Universal Investment’s chief customer officer Katja Müller
Pension funds commit to first AllianzGI’s cross-asset private markets strategy
Going forward, the main priorities are infrastructure and the energy transition, says the firm
Stakeholders propose flexible funding rules for German Pensionskassen
Proposal foresees temporary underfunding through so-called ‘standby agreement’ between the Pensionskasse and sponsoring companies
BaFin, Bundesbank tighten guidelines for banks’ investments in Spezialfonds
Credit institutions are expected to monitor individual positions in Spezialfonds exceeding certain thresholds
Germany’s BVK reappoints Access Capital Partners for private equity
The scheme is also planning to hire a sustainability expert
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