Self-determined future provisions for your large company

In occupational provisions you have a choice of three pension models: full insurance, the semi-autonomous and autonomous solution. If you don't want to set up your own employee benefits institution, you can join a collective foundation. You then have the choice between a full insurance and a semi-autonomous solution. Full insurance prioritises security: investment and longevity risks are fully covered in addition to death and disability.

With semi-autonomous foundations, on the other hand, the foundation (and therefore the affiliated companies and their staff) bear the investment risk – as well as the investment opportunities in the form of higher long-term returns. The design of semi-autonomous foundations ranges from solutions with investments at foundation level (investment decision by the Board of Trustees), through solutions with investments at affiliated employer level (investment decision by the Administrative Board) to individual investment solutions for the insured person (1e solution). Swiss Life offers you the full range of pension solutions with significant scope for customisation.

The full insurance solution is unique in terms of security. That is because the employee benefits institution passes all the risks on to an insurance company. Swiss Life is one of the few providers of this pension model. Full insurance offers insured persons full guarantees and reinsurance of all risks. A shortfall is impossible as the insurance always guarantees the employee benefit 100%.

With semi-autonomous pension solutions, the employee benefits institution is itself responsible for investing the pension fund assets, and thus also for the associated risks and rewards. If financial market developments are positive, insured persons can benefit from a higher interest rate on their retirement savings and thus expect higher retirement benefits. In good investment years, a portion of the profit also flows into a so-called value fluctuation reserve, which offsets any capital market fluctuations. A shortfall (cover ratio below 100%) and the associated restructuring measures cannot be ruled out, but are considered an exceptional scenario.

The conversion rate determines the sum of the pension on retirement. For this purpose, the retirement savings accumulated at the time of retirement are multiplied by the conversion rate, which results in the annual retirement pension. The conversion rate for the mandatory retirement savings is set in the Occupational Pensions Act (BVG) and is currently 6.8%. Pension funds are free to set their own conversion rate for supplementary benefits.

The trend in occupational provisions remains dynamic. Our specialists will be glad to show you and your employees how their provisions are structured, what happens to their contribution payments and what the current changes in the pension system mean to each of them personally. That way you and your employees can keep track of the situation and plan ahead.  

Your Swiss Life advisor will be happy to provide you with detailed information on these topics.