German Pension Fund Collapse: Dentists Lose Half of €2.2 Billion, Sparks Oversight Debate

• A German pension fund managed by Berlin dentists lost nearly half of its €2.2 billion retirement savings, highlighting flaws in the profession-based pension system.
• The fund, VZB, heavily invested in private loans, unlisted companies, and real estate, with many ventures failing or struggling, including a California plastic recycling firm and a shrimp farm.
• VZB has initiated legal action against its former auditor, advisers, and committee members, including ex-chairman Ingo Rellermeier, to recover an estimated €1.1 billion in losses.
• The collapse exposes weaknesses in oversight and controls at profession-based funds, which manage €300 billion but often lack professional investment staff and operate under fragmented state-level supervision.
• The incident has reignited debate over supervision, with critics arguing for federal oversight by BaFin instead of current state ministries, as Chancellor Friedrich Merz signals pension reforms.