The law introducing defined contribution pension plans without guarantees to Germany has passed the larger house of parliament, the Bundestag.
The Betriebsrentenstärkungsgesetz (BRSG) was passed with the votes of the government coalition, comprised of the social democratic party SPD and the conservative parties CDU/CSU.
Against expectations, both opposition parties – the Green party coalition Bündnis 90/Die Grünen and the left-wing Die Linke – rejected the legal draft as agreed on by the government.
The vote by the Green delegates came as a surprise because party representatives had agreed to the law in a preliminary vote in a parliamentary committee meeting the night before.
The BRSG will for the first time allow the creation of defined contribution pension schemes – also called defined ambition plans – which can be set up by collective bargaining agreements.
During the long negotiations on the BRSG over the past year, insurance companies had led the opposition to the ban on guarantees for the new plans. However, it now seems some have found a way to get a slice of the new pension cake.
Five small mutual insurers announced that they were to join forces and create a pension platform. The so-called “Rentenwerk” is to be set up to provide companies and unions with flexible pension solutions to be implemented under the new law.
Germany’s national competition regulator still has to approve the collaboration between Barmenia, Debeka, Gothaer, HUK-COBURG, and Die Stuttgarter.
Full news
© IPE International Publishers Ltd.
Key
Hover over the blue highlighted
text to view the acronym meaning
Hover
over these icons for more information
Comments:
No Comments for this Article