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BaFin said the eight schemes were smaller Pensionskassen – insurance-based occupational pension plans – and did not belong to the 40 largest in the sector.
The stress test examines how Pensionskassen would fare in four different situations involving short-term, adverse capital market changes. Last year seven did not pass the stress test, and the year before it was nine.
The eight Pensionskassen failed BaFin’s stress test because they did not pass all scenarios tested. The supervisor said they generally missed the required funding level by a small margin.
In total, 130 Pensionskassen (94%) were considered to have sufficient “risk-bearing capacity”, according to BaFin’s statement.
BaFin supervises 138 Pensionkassen. It excused 16 from taking part in the stress test because it considered their “risk-bearing capacity” to be assured as a result of them pursuing low-risk investment strategies.
In an introduction to the regulator’s 2016 annual report, BaFin president Felix Hufeld said that Pensionskassen were under considerable pressure from low interest rates and have already begun to take measures to strengthen their risk-bearing capacity.
Nearly all Pensionskassen have built up additional provisions, he said.
However, he warned that some might not be able to deliver promised benefits in full if interest rates stayed low.