BVV, the pension institution for Germany’s banking industry, is expanding its occupational pension services by establishing a contractual trust arrangement (CTA) for companies seeking to de-risk pension liabilities held on their balance sheets.
The CTA offers a “flexible, tailored alternative” for liabilities relating to future service for companies restructuring their occupational pension arrangements, BVV told IPE in a statement.
Companies can fully fund their existing direct pension promises (Direktzusagen) through the CTA while using the BVV Pensionsfonds for liabilities relating to past service, the statement added.
BVV expects demand for de-risking occupational pension liabilities to continue growing as companies face increasing balance sheet, regulatory and administrative requirements.
According to BVV, the CTA will play an important role in pre-funding future pension entitlements alongside a Pensionskasse, Pensionsfonds and support fund (Unterstützungskasse).
The launch of the CTA marks the latest step in the institution’s strategy to become a full-service provider of occupational pension solutions.
In 2023, BVV established a pension management company to meet growing demand for professional occupational pension management and administration services.
A strategic partnership with Berenberg subsequently led to the creation of a platform offering institutional clients services ranging from consulting and investment management to administration.
The development of additional occupational pension solutions and dialogue with social partners to offer defined contribution (DC) pensions beyond the financial services sector are further elements of the strategy.
With the CTA, companies can access all major options for restructuring pension obligations – from insurance-based solutions and Pensionsfonds arrangements to fiduciary asset management within the CTA framework – from a single provider, BVV said.
Management changes
BVV, which manages €35bn in assets, is pursuing its ambition to become a full-service occupational pensions provider while seeking to improve investment performance. Its net return fell to 2.8% in 2025 from 3% in 2024.
Marco Herrmann, chair of the board, told delegates at BVV’s annual general meeting (AGM) in Berlin last week that geopolitical uncertainty weighed on economic growth and capital markets in 2025.
“High volatility resulted in a cautious investment climate in which all institutional investors worldwide operated,” he added.
According to reports, disagreements within the management board over BVV’s investment strategy led to the departure of chief investment officer Axel-Rainer Hoffmann after only five months in the role.
Meanwhile, head of portfolio management Marc Günther is overseeing asset allocation in his capacity as head of department, while Herrmann remains the board member responsible for investments until further notice, BVV said.
The AGM also elected a new supervisory board following the expiry of the previous board’s four-year term.
Chair Heinz Laber, former member of the management board of UniCredit Bank, was re-elected, while Bettina Kies-Hartmann, Frank Annuscheit and Michael Boldt stepped down from the supervisory board.
