KARLSRUHE (dpa-AFX) - Germany's Federal Court of Justice (BGH) has declared a provision in contracts for unit-linked Riester pension insurance invalid, which allowed insurers to unilaterally reduce pensions retroactively. In this specific case, the Baden-Württemberg Consumer Center had taken legal action against Allianz Lebensversicherung. According to consumer advocates, the ruling also affects contracts from other major providers.
The contested clause permitted Allianz to lower the pension factor if, due to unforeseeable circumstances at the time the contract was signed, the life expectancy of insured persons significantly increased or the returns on capital investments dropped sharply. The Stuttgart Higher Regional Court had already prohibited the insurer from relying on this clause in January.
The BGH has now largely rejected Allianz's appeal against the ruling. The agreement was deemed invalid because it did not oblige Allianz to increase the pension factor if the circumstances that led to a reduction improved. This, the court stated, would place policyholders at an unreasonable disadvantage. (Case No. IV ZR 34/25)
Possibly One Million Contracts Affected
Allianz Lebensversicherung pointed out that any reduction in the pension factor was reviewed by an independent trustee, who confirmed it was necessary and appropriate. According to the insurer, contracts signed between July 2001 and June 2013 could be affected by the now legally binding ruling. A spokesperson said that contracts signed after this period do not contain the contested provision.
The German Association of Insured Persons (Bund der Versicherten) believes the decision is significant beyond Allianz contracts. According to board member Stephen Rehmke, around one million contracts from various insurers, offered up until the mid-2010s and subsequently subject to pension reductions due to similar clauses, could be impacted by the ruling./jml/DP/nas
