Karch criticises German pension system’s interest rate sensitivity


first_imgThe German occupational pension system has overlooked its interest-rate risk sensitivity, a dependency that will force it to re-evaluate its approach to guarantees, according to Heribert Karch, chair of the country’s pension association.Karch, chairman of the aba and chief executive at MetallRente, said that, following the collapse of Lehman Brothers, the German pensions sector was proud of how well it weathered the crisis.“But we overlooked how sensitive to interest rates we were,” he told the aba’s annual conference in Berlin this week.“Today, we still finance a greater number of countries than we do economies. This results in a interest rate dependency and a sensitivity to interest rates that forces us to re-think the dilemma of [low] returns and guaranteed [payments].” Karch called for the industry to truly re-think the issue and not simply assume a defensive stance.“If we can come to a sensible agreement, then I am not worried that we can ensure [income] security for employees.”The chairman’s comments came shortly after the German government received two detailed reports on pension reform, examining possible tax incentives to boost participation and the role of collective bargaining agreements.The respective ministries, for finance and social affairs, have offered tacit support for one of the main findings, proposing the use of an auto-enrolment system to boost participation rates.However, aba and Karch warned against attempts to introduced a defined contribution-based system, without any guarantees, noting it would be a difficult reform to sell.“The federal government must now look at the numerous reform proposals and settle on the right shape of reform.“The aba stands ready to offer its assistance – both with the big picture and the detail.”last_img read more

Ralph Kunz, 78


first_imgRalph W. Kunz, 78, of Osgood passed away at 6:20pm, Monday, May 22, 2017 at the Margaret Mary Community Hospital in Batesville. He was born near Napoleon on April 16, 1939 the son of Albert and Esther Peetz Kunz. He was married to Sylvia Russell on December 20, 1958 and she survives. Other survivors include three daughters Karen (Steve) Sullivan of Osgood, Marilyn (John) Washburn of Westport, and Lisa (Kyle) Seitz of Osgood; seven grandchildren Travis (Kimberly) Sullivan Jerid (Ally) Sullivan, Anita (Joe) Maloney, Michell (Jason) Schwering, and Tyler, Hunter, and Conner Seitz; 8 great-grandchildren; two brothers Tilford Brunner of North Carolina, and Bill (Rita) Robbins of Greensburg. He was preceded in death by his parents, his brothers Howard, Cleo, Herschel, and Floyd Kunz, and his sister Vera. Mr. Kunz was a 1957 graduate of Napoleon High School. He served in the Indiana Army National Guard from 1956 to 1964 where he served as a scout driver and earned the sharpshooter badge with one bar. He was a former employee of ITT in North Vernon where he worked as a shipping foreman. He retired from Jac-Cen-Del High School in 2003 after working as a custodian for 20 years. Ralph enjoyed drinking coffee at the Whistle Stop and Red Barn in Osgood, riding his Harley, shooting guns, playing euchre, working with his hands, spending time with his family, and was affectionately known as the “Mayor of Otter Village”. Ralph was a member of the St. John Lutheran Church at Napoleon. Funeral services will be held on Friday, May 26th at 11am at the St. John Lutheran Church in Napoleon with Pastor Donn Abdon officiating. Burial will be in the church cemetery with military graveside rites by the Osgood American Legion. Visitation will be on Thursday from 4pm to 7pm at the Stratton-Karsteter Funeral Home in Versailles and from 10am until time of services at the church on Friday. Memorials may be given to Rescue 69 or the St. John Lutheran Church in care of the funeral home.last_img read more