GERMANY - Allianz Global Investors Deutschland (AllianzGI) and the life insurer Allianz Lebensversicherungs-AG (Allianz Leben) have founded a joint subsidiary, to serve its corporate clients as a trustee for CTA models (contractual trust arrangements).
It will be jointly managed by Marc Braun and Martin Katheder.
CTAs provide financial coverage for employers' obligations arising from corporate pensions, working time accounts or phased-in early retirement plans and at the same time shield them against insolvency.
The employer transfers the assets earmarked for this purpose (plan assets) to a trustee, which acts as administrator to the employer and guarantor to the entitled employees.
In this way the employees are also protected outside of the statutory security framework (Pensionssicherungsverein) against the risk of losing their pension claims in the event that their employer should suffer insolvency and of ending up empty-handed in their old age.
Jonathan Stapleton asks whether newly-accredited professional trustees should be a statutory fixture on pension scheme boards.
Savers are being warned by the Insolvency Service to guard their pension pots from investment scammers and negligent trustees as it winds up 24 companies.
Respondents say they should only be required in certain situations as the system is not broken.