MetallRente, the pension fund for Germany’s metal and electric industry, has more than doubled the number of companies it has under contract – in the process taking its potential target coverage to one million. The fund now says it has the potential to become Germany’s largest institutional fund.

The fund said in a statement that the number of firms under contract has risen to 1300, from 500 in September. The news means it has succeeded in hitting its potential coverage target of one million employees. Sales commenced six months ago. MetallRente’s managing director, Heribert Karch, says the fund “has the potential of becoming Germany’s largest institutional pension fund”.

Says MetallRente: “The fund has been received equally well by small and medium-sized enterprises and group customers across all three channels - direct insurance, the traditional German Pensionskasse and the new Pensionfonds structure.”

The system was established in 2001 and although it focuses on the metal, electronics, steel and textile industries, other industries have now signed up.

Though initially most workers were expected to take out the new scheme as a supplement to an existing occupational plan, it is thought that new workers will use the MetallRente system as their main source of retirement provision, apart from their state pension entitlement.

Allianz was appointed at the end of 2001 to lead a consortium of managers in running the assets of MetallRente when it becomes effective.