Secure Retirement Benefits Through Direct Pension Commitments

Material impacts, risks and opportunities

The rising life expectancy of those entitled to a pension, pay and pension adjustments, volatile capital markets and falling discount rates all have an impact on our retirement pension commitments. As a company offering welfare benefits, we are obligated to guarantee commitments to our employees in the long term. We see a potential reduction in the plan assets in our company pension fund and higher obligations due to pay and pension adjustments as a financial risk in the medium term.

Strategy

To be able to maintain an attractive pension package for our employees while also reducing financial risk, we place emphasis on diversifying the investment strategy and on a range of future-proof products for our employees. There are company agreements on this topic, too, for all pension commitments and, specifically for pension fund commitments, comprehensive insurance terms and conditions apply in Germany. Responsibility lies with the Head of the Retirement Benefits department, who also acts as the pension fund director.

Actions

The pension guarantees with which WACKER provides its employees are covered by various instruments such as the Wacker Chemie VVaG pension fund, other earmarked plan assets and pension funds as well as insurance solutions. Our diversified investment portfolio ensures a sufficient rate of return and reduces investment risks. Since 2022, we have offered new employees in Germany retirement benefits on a funded basis to support their financial security.