Pension fund – Information for pensioners

•    Martin Wenk (chairman)
•    Thomas Schöb
•    Stephan Ragg
•    Urs Burri

Internal service

•    Anja Gmünder
•    Michael Holliger
 

Field service

•    Markus Zemp
•    Fabian Horisberger

Actuarial reserve

The actuarial reserve or pension capital is the balance sheet provision for future pension benefits.

AHV/IV

Federal Old Age, Survivors' and Disability Insurance

AHVG

Federal Law on Old Age and Survivors' Insurance

Asset Liability Management (ALM)

Management of the assets and liabilities side of the balance sheet, taking into account risks and interdependencies. The aim of ALM is to strike a far-sighted balance between benefits and their financing, taking into account the market environment, the specific conditions of the pension fund and the risk appetite of the management body.

Autonomous Fund

A pension fund that bears all pension risks itself, i.e. the investment and longevity risk within the framework of old-age provision, as well as the insurance of death and disability risks.

BSV

Federal Social Insurance Office

BVG

Federal Act on Occupational Retirement, Survivors' and Disability Pension Plans

BVV 2

Ordinance on Occupational Retirement, Survivors' and Disability Pension Plans (implementing provisions for the BVG)

Cash value

An amount of money which, at a given time, corresponds to the (discounted) value of future benefits or contributions.

Children's pension

Benefit in favour of children who would be entitled to an orphan's pension if the insured person died. As a rule, children's pensions are provided in addition to old-age and disability pensions.

Conversion rate

The (minimum) percentage defined in the regulations or determined by the Federal Council for calculating the annual pension based on the available pension capital.

Coverage ratio

The funding ratio provides information on the percentage of assets that cover the obligations of a pension fund. The coverage ratio in accordance with Art. 44 BVV 2 is the ratio between the net assets available to cover underwriting liabilities at market values (Vv) and the required retirement capital (Vk).

Diversification

Diversification in the area of investments means that by combining several investments or investment categories, the fluctuations of a portfolio can be reduced without a loss of return.

Employer contribution reserves

Reserves accrued by the employer in the pension fund and shown separately in the balance sheet for the purpose of financing future financing obligations of the employer.

Entitlement

A claim and the associated right. This claim is neither due nor enforceable.

Foundation council

Supreme management body of a pension fund

Installations

Management of the assets of a pension fund in a manner appropriate to the return and risk under consideration of certain investment rules.

Investment strategy

The investment strategy divides the assets into one or more investment categories according to plan. Traditional investment categories are bonds, equities and real estate. Alternative categories include private equity, hedge funds and commodities.

Liquidity

The investment rules focus on the investment objectives of liquidity, security and return. Liquidity is the coverage of the foreseeable need for liquid funds to meet obligations at all times.

Old-age insurance

Insurance against the economic consequences of old age

Orphan's pension

Survivor's benefit in favour of the children of an insured person
 

Pension regulation

Issued by the highest management body (foundation board) and defines the content of the pension relationship, i.e. the legal relationship between the pension fund and each of its beneficiaries.

Performance

Performance is the profit or loss of an investment or portfolio over a period of time. In addition to changes in value, dividend and interest payments are also included.

Registered partnership

Persons living in a "registered partnership" status in accordance with PartG have the same rights and obligations as spouses (see spouse's pension).  

Risk benefits

Benefits in the event of disability and/or death

Risk capacity

Suitability to bear risks
 

Security fund

Ensures the statutory and regulatory benefits of insolvent pension funds. It also pays subsidies to funds with an unfavourable age structure of the insured population.

Shadow calculation

A pension fund keeps a shadow calculation for each insured person in order to prove that it provides at least the minimum benefits prescribed by the BVG.

Spouse's pension

Survivor's benefit in favour of the surviving spouse of an insured person (widow's/widower's pension)

Tactical Asset Allocation

The investment strategy usually defines bandwidths that must be monitored for compliance. Tactical asset allocation represents the possibility of deliberately deviating from the investment strategy within the bandwidths for tactical reasons.

Target / target return

The target return corresponds to the return on assets required to keep the coverage ratio constant. The target return is the return on assets targeted by the pension fund. It is derived from the target return and also takes into account the build-up of the fluctuation reserve.

Technical provisions

Are a passive balance sheet item in the commercial and underwriting balance sheets of a pension fund.
 

Value fluctuation reserve

To compensate for fluctuations in value on the assets side of the balance sheet