Members and employers of Germany's largest public sector supplementary pension fund, VBL, are likely to face increasing contribution rates to prevent its bankruptcy in coming years.

Currently the country's 30 public sector pension funds are all grouped under one umbrella organisation but run separately. Some have large surpluses, but VBL, with assets of DM11bn (&euro5.6bn), two million active members and 890,000 pensioners, is in financial trouble.