The Berlin Dentists’ Association (Versorgungswerk der Zahnärztekammer Berlin, or VZB) has warned that its pensionholders may see their entitlements cut due to investment losses.

According to DPN Online, VZB chair of the administrative committee, Thomas Schieritz, has said that the association’s 10,000 members across Berlin, Brandenburg (the state that surrounds the city), and Bremen should expect "noticeable cuts" in their entitlements alongside high contributions.

Problems within VZB’s investments have been known about for some time.

At the end of June, the organisation said in a statement: “Most recently, VZB managed investment assets of approx. €2.2bn to secure the retirement provision of its more than 10,000 members. As of 31.12.2023, it had a reserve of €145m. On the basis of the annual financial statements and the actuarial report for 2023, the VZB appeared to be in a solid economic position.”

It added: “In fact, however, the economic situation of the VZB is more challenging. In particular, due to the investment strategy pursued from 2013 onwards, in the course of which real estate investments and direct investments in companies were entered into, substantial impairments were and are necessary in some cases.”

DPN Online said that the association made high-risk investments in start-ups, company shareholdings, and real estate that did not meet the usual security standards. These, it said, are particularly problematic. Some of these investments were financed with insufficiently secured loans or loans that were not secured at all. According to Schieritz, a significant proportion of the facilities are now acutely endangered.

Now, DPN Online has reported that three independent law firms have been brought in to investigate events that have taken place since February. According to the news service, the first report showed serious breaches of duty, violations of legal investment guidelines and a failure of control mechanisms. In response to these results, the entire Administrative Committee was dismissed. Several members had already resigned or been recalled before.

This would be reflected in recent moves by the VZB. According to its own website, a meeting of the Representatives’ Assembly less than two weeks ago saw a large shift in the makeup of the Administrative Committee. It said that Alexander Klutke was elected as the new deputy chairman, taking over from Dr Rolf Kisro, who had resigned ‘for personal reasons’.

According to the VZB, Dr. Jörg Lips was also newly elected to the Administrative Committee as an associate member for the Brandenburg Chamber area. He succeeds Dr. Michael Geuther, who was dismissed by decision of the Representatives' Meeting. It also said that the associate member of the Administrative Committee from the chamber area of Bremen, Rolf Weggen, was also dismissed. The position has not been filled for the time being.

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