Frank Vogel, Chairman of the Pensions-Akademie
1. Mr Vogel, as usual it was Dr Georg Thurnes who made the opening remarks. He compared occupational pensions to a supertanker that is very difficult to manoeuvre - what do you think? What has changed over the past 10 years?
The comparison is apt. The occupational pension system is a complex system with a large number of players, regulatory requirements and long-term commitments. But from the introduction of the social partner model to digital administration processes and new investment strategies, a lot has happened in the last ten years. The tanker is moving, albeit slowly, but the Pensions- Akademie has been on board for exactly 10 years now and is happy to give it a bit of a push now and again.
2. Mr Thurnes called for at least the finalized reform proposals in the government's draft of the second BRSG to be implemented without delay. Do you think this is realistic?
Because occupational pension schemes need planning certainty, the demand is perfectly understandable. But is it realistic? That depends on the political agenda and the government's current priorities, and it remains very, very exciting. Our next Senior Roundtable will look at this very political agenda and the impact the recent elections may have on our economy in general. However, experience has shown that occupational pension issues, in particular, fall behind in terms of political priorities, which is why such processes unfortunately take longer than desired.
3. The topic of occupational pension schemes in SMEs (Mittelstand) was a frequent topic of discussion - be it liability issues or the simplest possible implementation. Is there a patent remedy from the discussions?
At the Pensions-Academy, we've made it our mission to help stimulate and inspire SMEs in Germany in particular. Unfortunately, there is no real panacea for small and medium-sized companies, although the basic conditions have actually always been known. Occupational pensions for SMEs need to be as simple and low-risk as possible. Communication and education of the beneficiaries should not be an immense effort. Perhaps AI will provide new impulses for standardized, cost-effective and perhaps even insurance-free solutions for SMEs. In any case, we will continue to fly the flag for SMEs on the “baV / occupational pensions supertanker”.
4. A lot of innovations have been discussed - most notably AI tools to address the shortage of staff in occupational pension schemes. What do you expect from this development?
AI will definitely help to automate processes and make advice more efficient. I think it will also replace the human factor more and more in the future - something that is almost unimaginable at the moment. We always say that trust and personal advice are particularly important in occupational pensions, but will this really be the decisive factor for the next generation? Personal dialogue will continue to accompany us in the years to come, providing impetus and inspiration. Just think of all the good ideas we have generated in small groups over a glass of wine after a Pensions Academy event. Hopefully this will continue. The next few years will be even more exciting.
5. The topic of de-risking pension liabilities was also addressed. In his presentation, Olaf John outlined various strategies, including pension buy-outs. Will pension buy-outs by pension companies be on the agenda in 2025 and how do you see the market developing in terms of buy-outs?
The issue is definitely gaining in importance. Companies want to reduce risks and focus more on their core business. It remains to be seen whether the big breakthrough will come in 2025. In any case, we will be devoting a Senior Round Table to this topic and will be exploring it in depth with our members. The tanker crew will have to decide whether this will make us a trendsetter for pensioner companies. The course towards de-risking has already been set, and the buy-out is certainly one of the most consistent, but not the easiest, solutions.