Berlin’s department for economic affairs has rejected a petition demanding transparency and accountability over the investments of the Versorgungswerk der Zahnärztekammer Berlin (VZB), the pension fund for dentists in the German capital.
VZB falls under the supervision of Berlin’s executive branch – specifically the departments for health and for economic affairs – with the latter responsible for insurance oversight.
As the insurance supervisory authority, the department for economic affairs is not allowed to disclose any investments, and “the petition will not be assessed”, it said in a statement to IPE.
The petition, launched by VZB member and Berlin-based dentist Mareen Scharf, calls for transparency on what she described as opaque investments that have led to heavy losses and the risk of pension cuts.
Transparency is needed on “what actually happened, who is responsible, and how the investments in question, and possible losses, could have occurred”, Scharf told IPE.
Petitioners are asking the supervisory authorities to disclose VZB’s investments and performance, commission an independent audit of how members’ funds were managed, and set up an inquiry committee in Berlin’s House of Representatives to examine possible breaches of supervisory duty.
However, the department for economic affairs said that “a special audit cannot, under any circumstances, be ordered by the insurance supervisory authority. The establishment of an inquiry committee would only be possible through parliament”.
A spokesperson for the health ministry said its role was limited to ensuring that VZB’s actions comply with the law, not to assessing financial prudence or efficiency.
“VZB carries out its [own] tasks within a framework of self-governance,” the spokesperson added.
An ‘explosive’ situation
VZB chair Thomas Schieritz told IPE the petition was “a sign of great interest” in an investigation already underway, and that the fund was cooperating closely with regulators.
“We recently provided information on interim results and investments during a meeting held on 11 October, open for the first members,” he said.
Scharf, who attended the meeting, said members were not allowed to ask questions.
“I became aware of the explosive nature of the situation. It became clear that there were serious structural and supervisory questions that had not yet been addressed publicly,” she said.
According to the petition, VZB’s investment losses could amount to around €500m, with pension cuts of up to 50% expected from 2026. Members are calling for the recovery of lost funds and a guarantee that pension benefits will not be reduced.
The department for economic affairs said only VZB is responsible for recovering lost money.
Professional pension funds across Germany have come under increasing scrutiny for taking excessive investment risks.
Sarah Vollath, a member of parliament for Die Linke (The Left), said her party is pushing for “nationwide minimum standards” and stronger oversight at state level, including strict quotas for illiquid assets, mandatory stress tests and portfolio transparency.
“Board members must be personally liable, bonuses must be reclaimed in the event of losses, whistleblowers must be protected, and members’ rights must be strengthened,” Vollath said.
The latest digital edition of IPE’s magazine is now available
No comments yet