BVV is gearing up to capture a larger share of Germany’s expanding defined contribution (DC) market, reshaping its organisation and strategy ahead of expected growth.
Marco Hermann, the new chair of BVV’s Pensionskasse, Pensionsfonds and Unterstützungskasse, overseeing €35bn in assets, told IPE the provider intends to deepen its presence in workplace pensions.
“Our focus will be on the digitalisation of our services, the development of modular [occupational pension] solutions, and continuous dialogue with social partners and clients,” he said.
He pointed to the “great potential” of social partner DC plans, noting that demographic pressures are pushing occupational pensions further into the core of retirement planning for employees.
“This is where BVV can leverage its strengths – experience, stability, and high-quality standards,” Hermann added.
Legislation currently before the Bundestag is seen as critical to widening DC coverage, particularly among SMEs and low earners.
The reform, expected to be approved by year-end, will ease access to existing social partner models, allow opt-out mechanisms, and increase subsidies for low-income workers taking up company pensions.
Preparing for expansion
The social-partner model for the banking and financial sector was launched in 2023 by AGV Banken, Ver.di and the German Bank Employees’ Association (DBV), with BVV’s Pensionsfonds serving as the vehicle.
Around 5,000 employees are currently covered, many of whom previously lacked an occupational pension, according to Ver.di’s head of labour market and social policy, Judith Kerschbaumer.
Most companies joining so far – nine out of 16 – are outside collective bargaining agreements, she noted.
“Many are [waiting] at the door” to join existing social partner arrangements, she said.
BVV is reorganising internally to prepare for a wave of new business.
“The establishment of BVV Pension Management was a key step in addressing the growing demand for professional management solutions and services in the area of occupational pension schemes,” Hermann said.
The provider has also added new options for financing direct pension promises to align with market needs.
A recent strategic partnership with Berenberg marks another step: the two are building a platform offering institutional clients integrated services across the full company-pension value chain, from consulting and investment to administration.
“We are combining Berenberg’s investment and consulting expertise with our experience in the administration, design, and digitalisation of company pension schemes,” Hermann said.
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