Versorgungswerk der Zahnärztekammer Berlin (VZB) has claimed the majority of investments that saw the pension fund for dentists in Berlin, Bremen and Brandenburg lose €1.1bn were unlawful.
VZB chair Thomas Scheiritz told IPE that the funds were not invested in line with the relevant statutory investment regulations.
According to Scheiritz, under the terms of the German Investment Ordinance, which regulates how the country’s pension funds, small insurers and funeral funds invest their guarantee assets, loans may only be granted to borrowers that have excellent credit ratings and sufficient collateral.
“This means, in particular, that the nominal value of the investment must be maintained and that sufficient liquidity exists,” he said. “These requirements were not met in numerous cases from the outset.”
The pension fund has identified various parties in its pursuit of damages, including the city of Berlin, VZB’s supervisory authority.
In response to a parliamentary inquiry, Berlin’s economic affairs ministry said that its “political leadership” only became aware – via an internal memo – of the “crisis situation” at the pension fund in early July last year.
“Had the responsible authorities reviewed the documentation for selected investments more closely, the lack of admissibility of individual investments would have been clear. Consequently, these investments would not have been made,” Scheiritz said.
According to previous reports by IPE, the fund’s earliest disclosed loss was almost €46m in 2022.
