Dominique Koch: Do you allow
exceptions when transferring clients from PensFlex to PensUnit?
As a rule, no. However,
to avoid hardship cases we may allow exceptions for fixed periods, e.g. when
retirement is imminent.
Does the client benefit in any
way from switching to PensUnit?
In its amendments to the
ordinance, the Federal Council states that voluntary purchases in 1e plans,
such as PensFlex must no longer be based on a fixed interest rate. That does
not apply to PensUnit, so people can maintain their current purchasing
capacity.
Nonetheless, collective
fluctuation reserves must be accumulated within PensUnit. Why is that?
In contrast to a 1e
solution, where each insured bears the opportunities and risks of his or her
own investments, we offer our insureds a uniform strategy, a type of cover
ratio solidarity. Collective fluctuation reserves are necessary to reduce the
risk of a shortfall. The employer can book these deposits as an expense
offering fiscal benefits.
What does that mean in terms of
selecting an investment strategy? What other possibilities are
there? Which criteria should guide the decision-making process?
The investment strategy
is determined by the pension fund’s, as well as the employer’s, risk tolerance.
If there is a high collective fluctuation reserve, or the will is there to
accumulate such a reserve, you can select a higher risk investment strategy.
PensUnit also allows the
accumulation of employer contribution reserves. How is that organised? Do
these reserves have something to offer?
Employer contribution
reserves can be used to finance future employer contributions. Payments to
employer contribution reserves are tax deductible. Current tax authority
practice is to accept employer contribution reserve payments of up to five
times the annual employer’s contribution. In the event of a shortfall, employer
contribution reserves can be reclassified, subject to the employer’s agreement,
as employer contribution reserves with waiver of use. That means the employer
doesn’t use the employer contribution reserves as a source of financing
employer contributions for the duration of the shortfall. Once the shortfall
has been resolved, the employer again has unrestricted access to the employer
contribution reserves.
Then the fluctuation reserves come back into play: PensUnit accepts employer
contribution reserves as part of the collective fluctuation reserve, provided
the employer agrees in the contract of affiliation to the reserves being
reclassified as employer contribution reserves with waiver of use in the event
of a shortfall.
Let us sum up once again at the end: What is the difference between the two pension models from an expert's point of view?
The PensFlex Collective Foundation is a so-called 1e foundation that operates exclusively in the non-compulsory area. The prerequisite for admission to the foundation is a salary higher than CHF 127'980. It allows the insured member a free choice of the individual investment strategy. Each insured person is responsible for the opportunities and risks of his or her own investment. There are no guarantees. Purchasing capacity is calculated without taking interest into account.
The PensUnit Collective Foundation is also an non-compulsory foundation. It offers the affiliated companies and their insured a supplementary pension. Wages outside the mandatory area are insurable. These salaries can be insured under both the basic and supplementary pension schemes. The prerequisite is compliance with the relevant provisions on adequacy. The investment strategy is determined by the Board of Trustees. It applies to all persons insured with the pension fund. The opportunities and risks arising from the investment of assets are borne jointly by the insured persons. The purchase is calculated at an interest rate of 2%.
