Companies are as different as people themselves. One company owner’s priority may be total security in occupational provisions, while another may be interested in accepting more risk for more return.
As a full-range provider of occupational benefits, Swiss Life has a comprehensive range of products to offer every company the optimal employee benefits solution.
The full-range provider strategy is to include a new solution: Swiss Life Business Premium offers insured persons and companies a number of advantages for their occupational benefits through a unique guarantee concept. Insured persons can now select their own investment strategy for a portion of their retirement savings in respect of salary portions exceeding CHF 126 900.
Occupational retirement savings represent the largest proportion of total assets for most insured persons. However, these assets are generally tied and are managed on a collective basis.
With Swiss Life Business Premium, insured persons can now decide how their retirement savings are to be invested. For portions of salary exceeding CHF 126 900, insured persons can define the investment strategy based on their individual risk capacity. The threshold level is set at CHF 126 900 as the BVG security fund guarantees this level of salary should an employee benefits institution become insolvent.
A choice can be made from four collective investment strategies with different equity components offered by the Swiss Life Investment Foundation. In addition, we offer employees with no risk capacity/risk appetite a savings insurance with a nominal value and interest rate guarantee (similar to full insurance).
Companies benefit twice over: On the one hand, employers as insured persons have the same advantages as their management employees and, on the other hand, companies that prepare their accounts in accordance with IAS/IFRS have the option to define all their employee benefits in lump-sum form, thus reducing their employee benefit liabilities to a minimum. Companies with their own pension fund can also reduce peak risks by selecting Swiss Life Business Premium as the employee benefits solution for their top earners.
In addition to the attractive costs, the employer enjoys the advantages of a financial guarantee from Swiss Life for withdrawal losses (in accordance with Art. 15 and 17 of the Federal Law on Vested Benefits) for a total of CHF 10 million. The employer therefore does not need to finance any supplementary contributions to build up value fluctuation reserves or provisions.
In principle, company owners can choose between a full-insurance solution with a life insurance company, a semi- or fully autonomous pension solution with a collective foundation, or to set up their own pension fund. As with every other investment decision, the relationship between security and return is crucial.
The full insurance solution provides the highest security. Insurance companies are legally obliged to pay at least the statutory minimum interest rate on their insured persons' BVG retirement savings on an annual basis. Companies do not incur any risk with a full insurance solution and thus have more risk capacity for their own business.
In the case of semi-autonomous BVG solutions, the risk of death and disability is transferred to an insurance company while the investment risk is borne by the semi-autonomous foundation itself and the insured persons' retirement benefits are directly invested on the capital market. If the strategy is successful and a respectable return is generated on the capital, the insured persons also benefit.
Large businesses in particular often operate their own autonomous pension fund. The Board of Trustees decides on the pension fund's benefits, contributions and investment strategy within the framework of the law. In the case of an autonomous pension fund, the risk is therefore borne by the company itself and its employees.