Facts
The Occupational Pension Supervisory Commission OAK BV and the BVG Guarantee Fund Foundation filed an appeal against decisions of the Federal Administrative Court that dealt with the dissolution of the Pension Fund [B.] and the assumption of obligations by the Guarantee Fund.
The Pension Fund [B.] had been underfunded since 2008, but was still able to provide its due benefits. The supervisory authority ordered the dissolution of the pension fund and the assumption of the obligations by the Guarantee Fund. However, the Federal Administrative Court overturned this decision, as the legal requirements for the intervention of the Guarantee Fund were not met.
The Federal Supreme Court confirmed the decision of the Federal Administrative Court. It clarified that the obligation of the Guarantee Fund to provide benefits cumulatively requires the inability to restructure and the insolvency of the affected group of insured persons. Since the Pension Fund [B.] remained solvent despite the underfunding, there was no insolvency that would have justified the intervention of the Guarantee Fund.
Considerations
The Federal Supreme Court stated that the law does not prohibit the establishment of pure retiree funds and that the Federal Council has implicitly recognized their admissibility. The decisive factor is that the pension institution can provide its due benefits.
While in the…