Five Questions to...

Klaus Morgenstern, DIA
A look at the future market for employee benefits in Berlin

1. Wenn Sie ein Fazit des bAV Preises ziehen müssten  – was war in diesem Jahr die größte Herausforderung für die Jury?

The challenge is really the same every year. The jury has to assess a large number of very different occupational pension projects. They range from the conversion of entire pension schemes to pure communication concepts. It is then necessary to distinguish which of these will bring about the greatest change for the companies concerned. In addition, a great deal of sensitivity is required, especially for small companies. A seemingly modest innovation can bring significant improvements, even if it seems simple compared to large companies, but they have completely different resources than, for example, an owner-managed Rewe supermarket.

2. There are some regulatory changes on the horizon - do you think they are good or bad? Or somewhere in between?

It depends on what the changes are. Some changes were announced by the executive at the congress in Berlin. The improvements to the social partner model that are coming soon are positive.

The DIA pointed out very early on that the exclusive regulation through a collective agreement was an unnecessary restriction. In this respect, we welcome the fact that companies not bound by a collective agreement will also be able to join a social partner model. This could increase the degree of diffusion. This still leaves much to be desired. Some of the announced improvements to private pension provision are also helpful.

For example, we have always considered the strict gross contribution guarantee for the Riester pension to be wrong. In this respect, the planned softening of the guarantee is to be welcomed. On the other hand, the “Ampel” government is on the wrong track when it comes to the statutory pension scheme. The plan to continue with the so called “holding line” on pension levels is a mistake that will only shift the burden onto future generations.

3. What did you take away from Berlin?

Satisfaction at how delighted the companies honored with the Deutscher bAV-Preis (German Pension Award) are with the award. They often receive recognition for their work over several years. In return, we on the jury are really happy to do the time-consuming evaluation.

4. The “Ampel” coalition has opted for the 48% holding line by 2039 - is this a suitable way of combating poverty in old age?

The holding line will not significantly change poverty in old age in Germany. The groups most at risk of poverty in old age will hardly be reached by this measure, if at all. If we look at who currently receives the basic old-age pension, it is often people who have hardly any or very few insurance periods, for example those who used to be self-employed. However, for those who have hardly any insurance credits, a slightly higher pension level will not make much difference.

5. Bert Rürup's famous question to each speaker during the congress: "If you are a wise dictator, what would you wish for/change?

If I were a ruler, I would decree that every single government regulation and provision for old age be overhauled and that pension provision in all three pillars be significantly simplified. We now have a level of complexity that discourages people from taking responsibility for their own pensions.

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