The first German professional pension funds are being awarded a new quality seal for meeting risk management and governance standards, following concerns over the management of assets at a pension fund for dentists in Berlin.
The €18bn pension fund for doctors, dentists and veterinarians in the state of Baden-Württemberg (BWVA) was the first to receive the new seal from the association of professional pension funds (ABV) in July.
BWVA president Eva Hemberger said in a statement that the quality seal “sends an important signal to our members that their retirement provision rests on a secure foundation”.
The seal also signals to the public that the system of professional pension funds remains “relevant and is well-positioned” for the future, she added.
Ärzteversorgung Westfalen-Lippe (ÄVWL), the €16bn pension fund for doctors in the Westphalia-Lippe region, met the requirements for the seal in August.
The chair of its management committee, Peter Czeschinski, said the approval validates the standards guiding ÄVWL’s daily operations.
ABV’s quality seal represents a commitment to maintain and further develop the standards achieved, the pension fund said in a statement.
The pension fund for dentists in Cologne and Düsseldorf was also among the first to meet the requirements set by ABV for transparency and governance.
The seal covers requirements relating to risk management, asset and liability management (ALM) studies, stress tests, annual financial reporting, internal compliance and governance policies.
Pension funds receive the seal only after demonstrating compliance with the requirements through an independent auditor.
ABV introduced the new requirements for its members, which manage a combined €300bn in assets, following developments surrounding the management of assets at the Versorgungswerk der Zahnärztekammer Berlin (VZB).
The Berlin dental pension fund came under scrutiny over its investment management, prompting the professional pension fund sector to strengthen its governance and risk management standards.
