Special provisions on key functions

(1) Pension funds must enable the person responsible for a key function to perform his or her tasks effectively, objectively, properly, and independently.
(2) The person responsible for the internal audit function may not perform any other key function within the pension fund.
(3) The person responsible for a key function may perform a similar task at the sponsoring undertaking only where
1. this is appropriate to the scale, nature, extent, and complexity of the pension fund's activities, and
2. the pension fund explains to the supervisory authority how it prevents, or deals with, conflicts of interest with the sponsoring undertaking. The pension fund must transmit a statement under the first sentence, point 2, to the supervisory authority without delay, where the person responsible for a key function performs, or is to take on, a similar task at the sponsoring undertaking.
(4) The person responsible for a key function must inform the management board of all material findings and recommendations from his or her area of responsibility. The management board decides what measures are to be taken. The person responsible for the key function is obliged to notify the supervisory authority that the management board has not taken suitable measures in time, where the pension fund
1. is exposed to a significant risk of failing to satisfy material statutory requirements, and this
a) has been notified to the management board, and
b) could have a material impact on the interests of prospective and current beneficiaries, or
2. materially breaches applicable statutory or administrative provisions in an area falling within the responsibility of the key function, and this has been notified to the management board. The duty of notification does not apply where the person responsible for the key function would thereby expose himself or herself, or a relative named in section 383(1), points 1 to 3, of the Code of Civil Procedure, to the risk of criminal prosecution or of proceedings under the Regulatory Offences Act. On account of a notification under the third sentence, the person responsible for the key function may not be held liable under either employment law or criminal law provisions. That person may not be held liable to pay compensation for damages, unless the notification was made knowingly, or with gross negligence, untruthfully. That person's entitlement to make notifications under the third sentence may not be contractually restricted. Agreements to the contrary are void.
(5) The actuarial function must also monitor the calculation of the technical provisions. By way of derogation from section 31(1), second sentence, points 2 and 4, it must
1. assess the appropriateness of the methods and base models used to calculate the technical provisions, and of the assumptions applied for this purpose, and
2. compare the assumptions applied in calculating the technical provisions with actual experience. The actuarial function also contributes to the own-risk assessment under section 234d. Section 31(1), second sentence, point 6, and (2), third and fourth sentences, does not apply.
(6) The actuarial function may be dispensed with where the pension fund
1. does not itself cover biometric risks, and
2. guarantees neither investment performance nor a specific level of benefits.
(7) Persons or bodies to whom a key function is outsourced must correspondingly satisfy the requirements of section 24(1).