Multi-employer Pension Fund Genesia

Structure and organisation

The affiliated companies together form a multi-employer Pension Fund within the Collective Foundation Trianon. This multi-employer Pension Fund has two joint administration bodies:

  • the General Meeting of Representatives, where each affiliated company is represented equally by employer and employees, pro rata to the number of members.
  • the Pension Committee whose members are elected by the General Meeting of Representatives. The latter is responsible for all decision-making defined in the organisational rules (asset management, reinsurance, pension plans and, where necessary, recovery measures).

Asset management

The assets of the multi-employer Pension Fund Genesia are collectively managed for all the affiliated companies. The Pension Committee is responsible for asset management, which must comply with strict legal requirements.
The investment profile and the Foundation’s partners responsible for its implementation (custodian and managers) are reviewed every 3 to 5 years on the basis of an ALM study performed by an expert in the field.
Asset management is currently shared by Mobiliar Asset Management AG, UBS and Credit Suisse; they apply an index based strategy that tracks the LPP 40+ at a very competitive cost (TER ~0.3%).

Investment fluctuation reserve

The investment fluctuation reserve target is calculated for the multi-employer Pension Fund Genesia as a whole by a specialist in the field, based on a probabilistic method with a security level of at least 95%.

Funded status

The funded status of the multi-employer Pension Fund Genesia applies to all the affiliated companies. For companies joining the multi-employer Pension Fund Genesia, the assets transferred in must be equivalent to a 100% funded status. If the multi-employer Pension Fund Genesia is underfunded at the time of affiliation, the affiliating company benefits from a 100% funded status during the first 5 years and is not impacted by any recovery measures imposed on the rest of the membership.

Pension plans

The multi-employer Pension Fund Genesia Pension Committee implements the pension plans available to affiliated companies and defines the basic conditions (interest rates on savings accounts, conversion rates, and funding). Each affiliated company can choose:

  • annual retirement credits
  • death and disability benefits.

Interest rates on savings accounts

The Pension Committee is responsible for determining the interest rate payable on the savings accounts of all members. Its decision is based on the interest rate set each year by the Swiss Federal Council and the coverage rate in effect at the account closing date.

Current conversion rate

The conversion rate is used to convert the retirement savings capital into a retirement pension. It is set by the Pension Committee at 6.8% for the mandatory part (LPP/BVG statutory minimum) and 5.7% for the extra-mandatory part, the normal retirement age being 65 for men and 64 for women.

Reinsurance

Matching reinsurance coverage for death and disability benefits provided by La Mobilière.