Employers in Switzerland are required by law to provide their employees with occupational benefits. Most companies do not have their own pension fund, however. Instead, they join a collective foundation which manages a separate occupational benefits fund for each affiliated company.
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.
Insureds and retirees who, due to a contract termination, transfer to another occupational benefits institution as a group will have a collective, pro-rata entitlement to the collective foundation’s funds (fluctuation reserves and technical provisions) in addition to the withdrawal benefits. These funds will be transferred to the new occupational benefits institution on behalf of the group of insureds.
Please note that nothing will change for companies and their employees who remain in the collective foundation. Their claims in the collective foundation remain unchanged.
The conditions for a partial liquidation can be found in the “Partial liquidation of a collective foundation” regulations (valid from 01/01/2019).Under these regulations, the requirements are met if
The AXA Foundation for Occupational Benefits met these conditions on balance sheet date December 31, 2021, with a funding ratio of over 110 percent.
In the course 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 institutions that are remaining as well as those that are leaving.
Technical provisions are only distributed in a partial liquidation if the corresponding risks are also transferred to the new occupational benefits institution.
The calculation of the entitlement to the fluctuation reserves takes into consideration the share of the group of insureds for whom these funds were created when the affiliation took place.
The allocation is carried out according to the distribution plan, which is based on the balance sheet date of December 31, 2021. The distribution plan sets out which occupational benefits institution is entitled to which claims.
For insureds and people retired from a company which remains affiliated with the AXA Foundation for Occupational Benefits:
The partial liquidation process will have no direct impact on you as an insured / retiree. Your current pension situation will not change.
Retirees will continue to regularly receive their pension.
The claims of your occupational benefits institution on the collective foundation will remain unchanged.
For insureds and retirees whose company left the collective foundation between December 31, 2021 and December 30, 2022 to join a new occupational benefits institution:
The partial liquidation process will have no direct impact on you as an insured / retiree.
Retirees will continue to regularly receive their pension.
The funds owed to your group of insureds will be transferred as an aggregate amount to the new occupational benefits institution. The new occupational benefits institution or occupational benefits fund commission will decide how they are used.
No. There is nothing you need to do.
You are receiving this information because the collective foundation is required by law to inform all occupational benefits fund commissions, insureds and retirees.
Under Art. 53b OPA of the law, every occupational benefits institution must stipulate in the regulations the conditions and the procedure for a partial liquidation. The Board of Trustees issued the “Regulations on the partial liquidation of a collective foundation,” which apply. It was approved by the regulatory authority.
If the conditions for a partial liquidation of the collective foundation have been fulfilled, the Board of Trustees decides to carry out a partial liquidation.
Insureds and retirees who have transferred to another occupational benefits institution as a group between December 31, 2021 and December 30, 2022 due to a contract termination.
Individuals who left the collective foundation (e.g. due to change of job) have no claim on the additional funds of the collective foundation.
Technical provisions are financial reserves that the collective foundation creates in order to cover future obligations that are foreseeable already today but which are not covered by contributions.
The collective foundation creates fluctuation reserves so that it has a financial buffer for fluctuations on the financial markets in order to offset any losses.
If you have any questions about the partial liquidation of the collective foundation, you can reach us quickly and easily by email or phone.
