Risky investment strategies: Dismissal of the director of the pension fund of the Berlin Chamber of Dentists is effective

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Risky investment strategies: Dismissal of the director of the pension fund of the Berlin Chamber of Dentists is effective

February 11, 2026

The Berlin Labour Court ruled that the dismissal without notice of the director of the pension fund of the Berlin Chamber of Dentists was invalid, but the ordinary dismissal was valid (Case No. 21 Ca 13264/25).

The extraordinary termination was formally invalid because the employer did not issue it within the relevant two-week period. The ordinary termination, however, was valid. The plaintiff abused his position as director and on the management boards of numerous affiliated companies. He knowingly placed himself in a conflict of interest by holding this dual position, whereupon he defrauded the pension fund of the dental association (VZB) failed to point this out, even though he was obliged to do so.

The director had been employed since 2000 and advised the pension fund on investments for the retirement benefits of dentists. Simultaneously, he held management positions in many of the companies in which the pension fund had invested. In 2025, auditors determined that these investments were likely worth far less than anticipated. A potential pension shortfall of approximately €1 billion is feared, due in part to risky investment strategies.

The specialist news in the information center is provided to you by the editorial team for Tax & Law at DATEV eG.

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