Germany’s Arbeitsgemeinschaft für betriebliche Altersversorgung (aba) has called for a social partner dialogue on occupational pension reform to begin “without delay” following the publication of the government’s Pension Commission recommendations.

Following the publication of the commission’s final report, the aba welcomed the aim for an overall pension provision level across all pillars of at least 70 per cent net after tax.

It added that the proposals for the first pillar are, in principle, are likely to have a stabilising effect in the medium and long term.

Commenting, aba chair, Beate Petry, said: "We share the Pension Security Commission’s view that, in order to achieve the targeted overall level of provision, the near-universal uptake of occupational pension schemes is essential.”

Indeed, she described occupational pension schemes as “indispensable” for the expansion of funded pension provision.

“The social partner dialogue recommended by the Pension Security Commission must be launched without delay, with the involvement of representatives from small and medium-sized enterprises. The aba stands ready to provide expert support.

“The aim must be to modernise and simplify the structure of occupational pension schemes so that they can make the best possible contribution to the targeted overall level of provision. In doing so, the economic situation of companies must be taken into account appropriately,” she said.

The aba also outlined several reforms it believes are needed to strengthen occupational pension provision.

It argued that providers should be allowed to reduce the current 100 per cent guarantee requirement, or remove guarantees altogether, in order to deliver higher pension benefits across all types of occupational pension schemes.

In addition, the association called for easier access to social partner pension models and improved support for low-income earners.

It also urged policymakers to accelerate efforts to cut administrative burdens while avoiding the creation of new bureaucracy, and to continue advancing digitalisation across the occupational pensions sector.

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