Companies still struggle with the challenges of managing defined benefit pension schemes, even though most of the defined benefit plans have been closed and replaced by defined contribution plans over the last 20 to 30 years.
Frequently chosen options to further reduce defined benefit obligations including transfers to pension funds, support funds or the introduction of contractual trust arrangements (CTAs) only resulted in improved accounting and tax treatments. Nevertheless, a final legal and economic release of pension obligations and associated risks has not been achieved. Companies remain fully exposed to pension risks which include longevity, interest rate, inflation and market risks.
Over the years, the original intentions of companies to provide for occupational pension schemes for their employees has been superseded by the insight that these schemes led them to running significant unintended (often driven by external developments) and non-core risks.
DBR Holding was founded with the goal to enable companies to achieve a full and final release of defined benefit obligations and associated risks in relation to German occupational pension schemes while securing former employees’ interests today and improving their financial position as (future) beneficiaries.