German pension provider Höchster Pensionskasse is to launch a pure DC scheme in partnership with Fidelity International for workers in the chemical and pharmaceutical industry.

The ZielrenteCHEMIE scheme has been given the green light by social partners in the chemical and pharmaceutical industry, including the Federal Employers‘ Association of the Chemical Industry (BAVC) and the chemical workers’ union, IGBCE. It is set to launch in December 2024.

Höchster Pensionskasse said approximately 1,700 companies in the chemical and pharmaceutical industry will be able to offer their employees the new scheme. It is the second scheme to be offered to workers in the chemical and pharmaceutical industry under the social partner model following the launch of ChemiePensionsfonds, under the umbrella of R+V Lebensversicherung AG, back in 2022.

The pension provider said the new pension scheme will have a higher equity weighting, with the social partners and Höchster Pensionskasse relying heavily on the long-standing expertise of Fidelity International in the management of pension capital.

The aim is to achieve a long-term attractive and comparatively low-volatility return. Höchster Pensionskasse said contributions will be broadly diversified across different asset classes, countries and regions, as well as sectors.

“The new offer based on the social partner model for the chemical industry makes occupational pension provision more attractive and sustainable for both companies and their employees,” BAVC CEO, Klaus-Peter Stiller, explained.

“With the target pensionCHEMIE, companies in our collective bargaining area have another attractive model at their disposal. We are proud that we can now even offer companies a choice of this forward-looking form of company pension provision. This is unique in Germany to date.”

In addition, IGBCE bargaining chairman, Oliver Heinrich, added: “The target pensionCHEMIE offers our members another attractive form of company pension provision.

“The fact that there is now a second offer for a social partner model in the chemical industry is a good development that proves that the model is future-proof and in demand. At the same time, it can become a model for other industries and companies.”

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