Business · Companies · 7 hrs ago
Hesse lawyers’ pension fund faces scrutiny over US property losses
A lawyer in Hesse has raised concerns about the pension fund for the state’s lawyers after it lost money on US property investments.
One failed investment involved San Francisco’s Transamerica Pyramid, and about €58 million must be written off.
The fund’s investments were affected by rising construction costs and supply-chain disruptions linked to the Covid pandemic.
Hesse oversees professional pension funds, but its investment supervision is limited to setting guidelines and does not direct their investment choices.
The state justice ministry says it has found no legal violations in the US property investments and has taken no supervisory action.
The fund says the losses will not affect pensions planned for 2027 or members’ pension entitlements.
Critics are calling for professional pension funds to be placed under BaFin’s supervision, but no change to oversight is described.
A lawyer in Hesse has raised concerns about his pension after the lawyers’ pension fund recorded losses on US property investments.
The fund invested in the Transamerica Pyramid office tower in San Francisco, and about €58 million must be written off.
Hesse’s justice ministry says it currently sees no need for action and has found no legal violations in the investments based on the information available.
The fund says the US investments will not affect pensions or entitlements planned for 2027.
Critics are calling for professional pension funds to be placed under the supervision of Germany’s financial regulator, BaFin.
- Who
- The pension fund for lawyers in Hesse, and a lawyer who raised concerns about his pension.
- What
- The fund faces scrutiny after losses on US property investments, including a write-off of about €58 million.
- When
- A lawyer contacted Hesse’s justice ministry recently. The article was published on 26 October 2026.
- Where
- Hesse, Germany; the fund invested in the Transamerica Pyramid in San Francisco.
- Why
- The losses prompted concern about members’ retirement savings and calls for stronger oversight.
Critics calling for BaFin oversight
Hesse’s justice ministry
Oversight
Critics calling for BaFin oversight
Critics want professional pension funds placed under BaFin supervision.
Hesse’s justice ministry
Hesse currently supervises the funds, setting investment guidelines but not directing investment policy.
Response to US investment losses
Critics calling for BaFin oversight
Critics argue the losses raise oversight concerns.
Hesse’s justice ministry
The ministry says there is currently no need for action and that available information shows no legal violations.
A lawyer in Hesse contacted the state justice ministry with concerns about his pension.
The fund faced a write-off of about €58 million on its investment in the Transamerica Pyramid.
The fund says the US investments will not affect pensions or entitlements planned for that year.
- Write-off
- About €58 million
- Property
- Transamerica Pyramid, San Francisco
- Fund
- Pension fund for lawyers in Hesse
- Oversight
- Hesse supervises the state’s professional pension funds
- Planned pensions
- No effect from US investments expected for 2027