BVV,c, has expanded its social partner model with defined contribution (DC) plans to three lenders of the cooperative PSD banking group, as scepticism mounts over proposed government reforms to strengthen occupational pensions.
PSD Bank Hessen-Thüringen, PSD Bank Nürnberg and PSD Bank Rhein-Ruhr have started offering DC company pensions to around 600 employees from 1 October 2025, according to BVV.
Employees will participate in a DC plan based on the “social partner model of the financial sector”, provided through the BVV Pensionsfonds vehicle. BVV also operates a Pensionskasse and a support fund (Unterstützungskasse).
The new plans form part of PSD’s broader realignment of existing company pension arrangements, covering roughly one-third of its 1,800 staff.
BVV chair Marco Herrmann said onboarding the PSD group within the framework of an existing social partner model “is a strong signal to the financial sector”, and demonstrates that DC plans are gaining traction.
“The social partner model in the financial sector is receiving a very positive response from our members and the financial industry as a whole,” he added.
Deutsche Bank has also opted to offer DC pensions under BVV’s social partner model to around 4,000 employees at subsidiaries of the former Postbank Group. BVV is planning to extend its DC offering to employers beyond the financial sector.
Helmut Hollweck, chair of the board of PSD Bank Nürnberg, described DC plans as a “logical step” in further developing pension provision, offering employees access to “a modern, transparent and attractive retirement plan”, and helping to attract talent in an “increasingly challenging labour market”.
DC plans are gradually gaining traction in Germany as the Bundestag begins debating government proposals to reform the second-pillar system. The reform aims to widen access to occupational pensions, particularly among small and medium-sized enterprises (SMEs), by allowing them to join existing social partner models without signing the collective bargaining agreements that underpin them.
However, the Bundesrat, which represents Germany’s federal states, said in a statement that employees in SMEs are unlikely to benefit significantly from the reform – a view echoed across the pensions industry.
According to a survey conducted by WTW at its occupational pensions conference in Frankfurt last week, 98% of companies doubt that the proposed reform will strengthen occupational pensions.
Instead, 52% of respondents said simplifying bureaucracy should be the top priority to boost workplace pension coverage, followed by lowering guarantees (24%) and expanding opt-out models (18%).
German companies are demanding a clear legal framework to better reach their employees through occupational pensions, said Hanne Borst, head of retirement Germany at WTW.
According to Aon’s bAV Study 2025, 71% of employees in Germany are already open to auto-enrolment. The government’s proposed reform aims to encourage opt-out systems in companies where employers make substantial contributions.
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