Capital investment

(1) Pensionsfonds must form tied assets having regard to the respective pension schemes. They must ensure that the holdings of the tied assets are invested in a manner corresponding to the nature and duration of the retirement provision to be provided, having regard to the determinations of the respective pension scheme.
(2) Pensionsfonds must submit to the supervisory authority a statement of the principles of their investment policy 1. no later than four months after the end of a financial year, and 2. without delay after a material change in investment policy. The statement must contain particulars of the process for risk assessment and risk management, and of the strategy in relation to the respective pension scheme, in particular the allocation of assets according to the nature and duration of the retirement provision benefits. It must also address the question of how the investment policy takes into account environmental, social, and governance matters. Pensionsfonds must make the statement publicly available. The statement must be reviewed no later than after three years.
(3) The continuous ability to meet a pension scheme's obligations may be regarded as assured even in the case of a temporary shortfall, where the shortfall does not exceed 5 percent of the amount of the technical provisions within the meaning of sections 341e to 341h of the Commercial Code, and the interests of prospective and current beneficiaries are preserved. In this case, a plan agreed between the employer and the Pensionsfonds to restore coverage of the tied assets (coverage plan) is required, which requires the approval of the supervisory authority. The plan must satisfy the following conditions: 1. the plan must show how the level of assets necessary for full coverage of the technical provisions within the meaning of sections 341e to 341h of the Commercial Code is to be achieved within a reasonable period; the period may not exceed three years, and 2. in preparing the plan, the Pensionsfonds' particular situation must be taken into account, in particular the structure of its assets and liabilities, its risk profile, its liquidity plan, the age profile of the persons entitled to retirement provision, and, where applicable, the fact that it is a newly established scheme. Approval must be granted where the employer's fulfilment of the obligation to make additional contributions for full coverage of the technical provisions within the meaning of sections 341e to 341h of the Commercial Code is secured by a suretyship or guarantee from a suitable credit institution, or in another suitable manner. The Pensionsfonds must notify the Pensionssicherungsverein of the agreement without delay.
(4) For pension schemes under section 236(2), subsection (3) applies with the proviso that the shortfall does not exceed 10 percent of the amount of the technical provisions within the meaning of sections 341e to 341h of the Commercial Code. The period by which full coverage must be restored may be extended by the supervisory authority; it may not exceed ten years in total.