Board of Trustees passes measures in favour of the Swisscom pension fund (comPlan)
03 July 2003
As announced previously, comPlan had a cover ratio of 93.8% as at the end of 2002. The shortfall is a result of the negative performance of the financial markets over the last few years. comPlan became independent of the Federal Pension Plan in 1999, and did not have a reserve for investment risks. Although the financial markets have recovered somewhat in the first few months of 2003, comPlan's investment income remains low.
In order to place comPlan back on an even financial footing, the comPlan Board of Trustees has decided to implement the following measures:
From 1 August 2003, a shortfall contribution of 3% will be levied on insured salaries, 1.8% of which will be paid by the employer and 1.2% by all active comPlan members.
For this year, the interest rate for retirement savings in the dual pension plan will be reduced from the current 4% to 3.25%. The Board of Trustees will review the interest rate on an annual basis according to the situation prevailing at the time. In line with the change to the dual pension plan, members of the defined benefit plan will also have their retirement pension reduced. The reduction will be determined on an individual basis according to the size of the withdrawal payment as at 31 December 2003.
Current retirement, survivors? and disability pensions will not be reduced, but the pensions will not be adjusted in line with inflation while the shortfall contributions are being paid.
According to Ueli Dietiker, Chairman of the comPlan Board of Trustees, the measures should ensure that the pension fund benefits remain at a high level. "The measures we have taken are both balanced and moderate, and will provide a basis from which we can ensure the healthy development of the pension fund for the benefit of its members."