German pensions lifeboat preps for insolvencies burden amid reform
The Pensions-Sicherungs-Verein VVaG (PSVaG), the mutual insurance association for German occupational pension schemes, expects a high number of insolvencies, despite the efforts of the government to mitigate the consequences of the COVID-19 crisis on the economy, board members Marko Brambach and Hans Melchiors have told IPE.
“This will also lead to a higher burden for PSV as the legal institution of insolvency protection for company pension schemes,” they said.
PSV is the statutory insolvency insurer for occupational pensions in Germany, covering direct pension promises, support funds, Pensionsfonds and certain types of direct insurance.
It insures around €345bn of liabilities in Germany and Luxembourg, covering some 11.1 million beneficiaries. In 2009, following the financial crisis, PSV modified its so-called smoothing process (Glättungsverfahren) in order to distribute part of the required contributions between 2010 and 2013.
Read more @IPE
