The social partners of the chemical and pharmaceutical industry, the Federal Employers’ Association for Chemistry (BAVC) and the Chemical Workers’ Union IGBCE, have given the green light for the new ZielrenteCHEMIE in their collective bargaining area. This will be implemented by Höchster Pensionskasse and organized together with the global asset manager Fidelity International. It is the second offer based on the social partner model introduced in the 2022 collective agreement for the chemical industry. For the first time, the approximately 1,700 companies in the chemical and pharmaceutical industry will have the opportunity to offer their employees a modern occupational pension scheme (bAV) in the form of a pure defined contribution plan through a pension fund.
For employees, ZielrenteCHEMIE brings numerous opportunities: especially due to the higher degrees of freedom in capital investment, they can expect a higher return on their savings contributions and thus a higher pension benefit. An additional contribution from the employer increases the security of the system, as the collective security buffer created with these contributions serves to offset possible pension fluctuations.
For companies in the chemical and pharmaceutical industry, this social partner model is an attractive component in the competition for the best talent. Further advantages for participating employers include the ease of joining ZielrenteCHEMIE, a high level of planning security, the elimination of liability risks, and the absence of compulsory contributions to statutory insolvency insurance.
A central element of ZielrenteCHEMIE is a robust capital investment with a higher equity ratio, where the social partners and Höchster Pensionskasse rely heavily on the long-standing expertise of Fidelity International in managing pension capital. The goal is a long-term attractive and comparatively stable return. Specifically, the contributions for the future company pensions are broadly diversified across various asset classes, countries and regions, as well as industries.
ZielrenteCHEMIE via Höchster Pensionskasse will be available to companies and their employees from December 2024.
“The new offer based on the social partner model makes occupational pensions more attractive and future-proof for both companies and their employees,” explains BAVC Chief Executive Klaus-Peter Stiller. “With ZielrenteCHEMIE, companies in our collective bargaining area have another attractive model available. We are proud to be able to offer businesses a choice in this forward-looking form of occupational pension. This is unique in Germany so far.”
“ZielrenteCHEMIE offers our members another attractive form of occupational pension,” adds IGBCE collective bargaining board member Oliver Heinrich. “The fact that there is now a second offer for a social partner model in the chemical sector is a good development that proves the model is future-proof and in demand. At the same time, it can serve as a model for other sectors and companies.”
“We are pleased that BAVC and IGBCE are enabling us, as the first pension fund in Germany, to implement the social partner model nationwide,” adds Jürgen Rings, CEO of Höchster Pensionskasse. “With ZielrenteCHEMIE, companies can offer their employees a modern, future-oriented, and attractive pension plan and position themselves in the competition for the best talent. Our offer is characterized by an innovative pension product, low administrative effort through digital processes, and thus low costs, as well as an attractive capital investment.”
“Pure defined contributions usher in a new era in occupational pensions and make the second pillar attractive and future-proof for both employees and companies,” says Christof Quiring, Head of Occupational Pensions and Member of the Management Board Germany at Fidelity International. “Without expensive guarantees, return opportunities can be significantly better utilized, and more attractive pension benefits can be achieved.”
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