Three of Germany’s PSD banks have adopted the BVV’s social partner model, offering employees a pure defined contribution pension under the BVV.MAXRENTE framework, marking a further expansion of Germany’s social partner model.

The move by PSD Bank Hessen-Thüringen, PSD Bank Nürnberg, and PSD Bank Rhein-Ruhr will offer around 600 employees a new occupational pension, jointly financed by employer and staff contributions, structured around a choice between return-seeking and capital-preserving investment options.

The decision follows a strategic review of the banks’ existing retirement offering.

PSD Bank Nürnberg eG chairman of the Board of Directors, Helmut Hollweck, described the new scheme as a “logical step” in the development of the bank’s pension provision.

He added that it “strengthens our position as an employer in an increasingly challenging labour market,” a point reiterated by PSD Bank Hessen-Thüringen eG member of the Executive Board, Martin Schöndorf.

Indeed, this aligns with a recent WTW Germany survey, which found that 75 per cent of German companies’ main goal when offering company pension schemes is to use them to attract and retain talent while ensuring adequate income in retirement.

In support of the social partner model, PSD Bank Rhein-Ruhr eG member of the Executive Board, Dr Stephan Schmitz, said it “combines security with opportunities and ensures simple and professional implementation”.

Despite this encouragement for the model, research in November 2024 by Generali Deutschland and F.A.Z. BUSINESS MEDIA found that the majority of German small and medium-sized enterprises (SME) are “sceptical” about pure defined contribution (DC) pension schemes

However, BVV chief executive, Marco Herrmann, said the social partner model has been very “well received” by BVV’s members and the financial sector as a whole.

“We are delighted that PSD Banken Nürnberg, Rhein-Ruhr and Hessen-Thüringen have now also decided to adopt it. Their cooperative orientation and association-based structure are an excellent fit with our self-image as a member organisation,” he added.

In the summer, BVV group posted positive annual results for 2024, revealing that earned premiums and net income both increased. Earned premiums increased slightly from €688m to €694m, while net income rose from €124m to €136m.

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