Life Insurance & Pensions Press Release
Pension Fund of Credit Suisse Group (Switzerland) introduces a 1e savings plan for the insured
The Pension Fund of Credit Suisse Group (Switzerland) today announced the introduction of a 1e savings plan. From January 2020, this plan will offer the insured with an income of more than CHF 127,980 the opportunity to be actively involved in determining the investment strategy for their extra-mandatory pension assets.
With this 1e retirement capital savings plan, the Pension Fund of Credit Suisse Group (Switzerland) is fulfilling the need for greater flexibility and customization in pension provision. The savings plan gives the insured the opportunity to select their own investment strategy for extra-mandatory components, tailored to their personal risk profile. Those insured with the Pension Fund of Credit Suisse Group (Switzerland) will in future be able to choose between six investment strategies, with equity components ranging from 0% to 75% depending on the strategy. This means that the insured can align the investment of their extra-mandatory retirement savings with their personal risk ability and risk tolerance. The 1e retirement capital savings plan will be introduced on January 1, 2020. The insured may amend their initial investment strategy selection at any time without incurring any additional costs.
The BVV 2 ordinance, amended in 2017, enables pension funds to offer their insured a choice of several investment strategies via 1e plans. The insured receive the actual value of their retirement savings when they leave the fund or retire; they benefit from the profits generated by the investment strategy, but also bear the investment risks in the event of unfavorable market trends. 1e savings plans are relevant only for salary components in excess of CHF 127,980 (4.5 times the maximum AHV retirement pension). For salary components below this figure, Pension Fund assets are invested using a single strategy for all insured; the insured participate in the investment result via the interest rate defined by the Pension Fund.
Martin Wagner, Manager of the Pension Fund of Credit Suisse Group (Switzerland): "The introduction of 1e savings plans is an important step toward a more flexible system for employee benefits insurance. Such plans give the insured the opportunity to be significantly more involved in how their pension provision is accrued than has previously been the case, and to actively tailor investments to their personal risk profile."
Overview of 1e retirement capital savings with the Pension Fund of Credit Suisse Group (Switzerland)
- Available to those insured with salary components in excess of CHF 127,980 (AHV salary).
- Retirement benefits are paid out exclusively as a lump sum (no retirement pension).
- Individual choice of six investment strategies: Different investment vehicles are offered with equity components ranging from 0% to 75% in line with the risk profile and the chosen strategy.
- Having a choice of different investment strategies means that the insured can benefit from potentially higher returns, but they also bear the full investment risks themselves: When they leave the Pension Fund or retire, the insured benefit from the profits generated by the investment strategy, but also bear the losses in the event of unfavorable market trends.
- There is a one-off opportunity to choose whether to transfer all the assets accrued in the current retirement capital savings to the new 1e retirement capital savings plan, or to pension capital savings. Savings contributions will be credited to the new 1e retirement capital savings plan from January 2020.