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Employers in Switzerland are required by law to provide their employees with occupational benefits. Most companies choose to join a collective foundation, which they do by signing an affiliation contract. They then become what is known as an occupational benefits fund and receive their own occupational benefits plan.
But if some companies leave the collective foundation and join a new occupational benefits institution, then in some circumstances the fund must be partially liquidated. This means that in addition to their vested benefits, insured members who transfer to another occupational benefits institution as a group in accordance with the regulatory provisions for insureds and pension recipients will have a collective, pro-rata entitlement to the collective foundation’s fluctuation reserves and technical provisions.
The requirements for a partial liquidation can be found in the regulations on the Partial Liquidation of a Collective Foundation for your collective foundation. Under these regulations, the requirements are met if
On December 31, 2021, your collective foundation showed a coverage ratio of over 110 percent as per BVV 2 / OPP 2. In addition, at least one company canceled its affiliation contract and left the collective foundation. As a result, your collective foundation meets the requirements for a partial liquidation under the terms of the regulations on the Partial Liquidation of a Collective Foundation.
This means that insureds and pensioners who are transferred as a group to another occupational benefits fund due to the cancellation of an affiliation contract are entitled to receive, in addition to their vested benefits, a collective, pro-rata share of the collective foundation’s funds.
The funds in the occupational benefits funds that are being terminated will remain undistributed in the collective foundation.
Under the regulations applicable to your collective foundation, all contracts terminated between December 31, 2021 and December 30, 2022 must be included in the partial liquidation. This is why the partial liquidation can only start in 2023 once the deadline has passed.
As part of the partial liquidation, the collective foundation’s technical provisions and fluctuation reserves will be distributed on a pro-rata basis among the occupational benefits funds that are leaving.
The distribution is made based on what is known as a Distribution Plan. The reference date for calculating the collective amounts to be distributed is December 31, 2021.
The partial liquidation process and its implementation are based on the Partial Liquidation of a Collective Foundation regulations that went into effect on December 31, 2021.
The easiest way to find the name of your collective foundation is to look at your personal certificate on the pensions portal.
The calculation of the collective pro-rata entitlement is set out in a Distribution Plan. The rules used for distribution are defined in the Partial Liquidation of a Collective Foundation regulation.
The Distribution Plan governs the pro-rata distribution of the collective foundation’s funds (technical provisions and fluctuation reserves) among the departing and the remaining groups of insureds.
The insureds for whom the provisions were made have a pro-rata collective entitlement to the technical provisions, but only if the actuarial risks are transferred as well. The collective entitlement is calculated on the same basis as is used for the current provisions.
The calculation of the entitlement to the fluctuation reserves takes into consideration the share of the group for whom these funds were created when the affiliation took place.
The collective pro-rata entitlement to the collective foundation’s funds will be transferred collectively with the departing group. The share of the funds of the group that is not leaving will remain undistributed with the collective foundation.
If your company remains affiliated with the collective foundation: If your company remains affiliated with the collective foundation:
The partial liquidation has no direct impact on your current occupational benefits. The funds which, according to the Distribution Plan, belong to the group that is not departing, will remain undistributed in the foundation.
Pensions will continue to be regularly paid out in their current amounts.
The following applies to everyone whose company left the collective foundation between December 31, 2021 and December 30, 2022 to join a new occupational benefits institution:
As an insured or a person drawing a pension, the partial liquidation has no direct impact on your current benefits situation at your new occupational benefits institution.
You will continue to receive your regular pension.
The pro-rata entitlement to the collective foundation’s funds will be collectively transferred to your new occupational benefits institution once the partial liquidation has been completed.
The Distribution Plan is structured so that, in addition to treating the departing group equally, it also takes into consideration the interests of the insureds and pensioners who remain with the collective foundation.
The financial situation and the performance of the collective foundation remain unchanged for the occupational benefits funds remaining in the collective foundation.
No. There is nothing you need to do.
You are receiving this information because your collective foundation is required by law to send it to you.
More detailed information and frequently asked questions about the partial liquidation process can be found in the Q&A section.
Do you have any questions about the partial liquidation of your collective foundation? Just call or send us an email.
