Feeling off-balance

The introduction of international accounting principles has led to a sea-change in the way occupational pension schemes are managed by German corporates, but what are the options for the country's small and medium-sized firms? Aaron Woolner reports

"Confusion is a typical reaction when someone first comes across the German pension system," says Andrew Hartsoe, senior consultant with HDI Pensionsmanagement, an offshoot of German insurance giant Talanx, and it is hard to disagree with this assessment. A combination of international accounting standards, German GAAP, five separate pension vehicles and highly detailed labour and tax laws has resulted in a jungle of options that need a clear head and a steady nerve to cut a path through (see