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aba: Deutschlandfonds has "cannibalizing effect"

Is it justified criticism or do some market participants see their skins swim away? After the German Institute for Pensions (DIA), the Working Group for Company Pensions (aba) has now also criticized the likely planned Germany Fund. It is feared that the employer will be overwhelmed. The rating is accordingly.

“We are very concerned about the current discussion about the centralization of funded old-age provision by means of quasi-mandatory sovereign wealth funds. What is presented as a beautiful new pension world has not been thought through to the end. Costs are calculated nicely because the entire administrative effort is shifted to the employer and the costs of the payout phase are negated. The prospect of dissemination success is given without considering the cannibalizing effect of such models, ”explains the aba chairman Georg Thurnes.

The criticism coincides in many points with that of the DIA. However, the institute had criticized the fact that only the employees have to perform, not an excessive administrative burden on the employer.

The Deutschlandfonds is essentially intended to be a cheap, state-run standard product for employees. Anyone subject to social security contributions can pay in; the structure is administered by the state. The trick is that you should work at cost price - VW todayreported in detail.

Not cheap and expensive

Aba is of the opinion that such a model is not poorly managed. Anyone who believes that “misunderstand reality”. The employers bear the administrative effort, they will meet new documentation obligations, which are safely controlled in the context of company audits, suspects aba.

“The allegedly low administrative costs of a state-organized standard pension product are also not a unique selling point. Company supply facilities in particular are extremely inexpensive, ”says Thurnes.

Company pension funds are highly valued by the employees, "it could not be in the interests of politics to take employers and unions out of their hands," explained Thurnes.

It is not even sure yet whether the Germany Fund will come, so it is completely open how it would be designed. The fact that the entire market plus politics is currently talking about old-age provision and pensions can only be good.

Author: VW editorial team