Individual Semi-autonomous Pension Fund

Structure and organisation

Each affiliated company forms an Individual Pension Fund within the Collective Foundation Trianon. Each Individual Pension Fund has its own Pension Committee, a joint administration body whose composition is adapted to the size of the company. The Pension Committee chooses its:

  • pension plan(s)
  • reinsurer. The Foundation also offers an insurance at an attractive collective rate.
  • custodian(s)
  • investment adviser (optional)
  • investment strategy
  • asset manager(s)

Asset management

The assets of each Individual Pension Fund are managed in accordance with the investment profiles chosen by the Pension Committee, within the statutory limits. The Pension Committee outsources management of investment profiles to specialised partners (custodian and managers) approved by the Collective Foundation Trianon. The Foundation also offers collective investment profiles developed with some of its partners.
The investment profiles and the Foundation’s partners responsible for their implementation (custodian and managers) must be reviewed every 3 to 5 years on the basis of an ALM study performed by an expert in the field. The chosen investment profiles may be modified each 30 June and 31 December, at the request of the Pension Committee.

Investment fluctuation reserve

The investment fluctuation reserve target is calculated for each Individual Pension Fund, based on a probabilistic method with a security level of at least 95%.

Funded status

The funded status is calculated individually for each Individual Pension Fund.
If the Individual Pension Fund is underfunded at the time of affiliation or subsequently becomes underfunded, it is subject to the recovery measures prescribed by the Fund rules.

Pension plan

The Pension Committee of each semi-autonomous Individual Pension Fund designs its pension plan or plans by choosing the:

  • savings plan
  • interest rate on savings accounts
  • conversion rate
  • risk benefits
  • funding method

Interest rates on savings accounts

The interest rates on savings accounts for each Individual Pension Fund are determined by its Pension Committee, based on a method chosen from among the variants offered by Collective Foundation Trianon. They take into account the funded status and the investment fluctuation reserve target.

Conversion rate

The conversion rate is used to convert the retirement savings capital into a retirement pension. It is set by the Pension Committee of each Individual Pension Fund. Should the set rate be higher than the reference rate, calculated on the basis of Collective Foundation Trianon’s actuarial tables and recommended by the accredited pension actuary, the Individual Pension Fund must set aside a corresponding provision. The Pension Committee may also choose to buy back retirement pensions from the reinsurer of its death and disability risks.

Reinsurance

Each Pension Committee must obtain matching reinsurance cover for death and disability risk, either through one of the collective contracts negotiated by Collective Foundation Trianon, or through an individual contract with a Swiss insurer approved by the Foundation. Individual Pension Funds with over 300 members may opt for a partial reinsurance solution (stop loss), subject to approval by Collective Foundation Trianon’s accredited pension actuary.