What is an individual retirement credit
Pension fund claims can neither be assigned nor pledged before they fall due. Exceptions are early withdrawals and pledges in the context of home ownership.
The Federal Old Age and Survivors' Insurance (AHV) and Disability Insurance (IV) are national insurance. They are compulsory for all persons who are gainfully employed in Switzerland and / or have their place of residence here. They pay out the following benefits: old-age pensions, widow's and widower's pensions, child and orphan's pensions and disability pensions. The aim of the pensions is to cover basic livelihood needs.
The members of the Unilever Switzerland pension fund who are actively employed and are neither retired nor disabled.
For each member of the Unilever Switzerland pension fund, individual retirement savings consisting of retirement credits and interest are accrued. The individually saved retirement assets are the basis for calculating the retirement benefits of the pension fund.
The retirement credits are the sum of employer and employee contributions that are credited to the individual retirement assets annually. The amount of the retirement credits is calculated on the basis of the coordinated salary and depends on the age of the active member and the selected plan variant.
The retirement pension is calculated on the basis of the existing retirement assets, which are converted into a pension at the regulatory conversion rate between 4.45% (age 58) and 5.35% (age 65). It is lifelong aligned. The annual amount of the retirement pension corresponds to the retirement assets available at retirement, multiplied by the corresponding, age-dependent conversion rate.
Active members can request a retirement pension or partial retirement pension from the age of 58 at any time.
The following companies have joined the Unilever Switzerland pension fund (as of 01/01/2019):
- Unilever Schaffhausen Service AG, Schaffhausen,
- Unilever Supply Company AG, Schaffhausen,
- Unilever Switzerland GmbH, Thayngen,
- Unilever Business and Marketing Support AG, Schaffhausen,
- Unilever ASCC AG, Schaffhausen.
See pension adjustment.
Fall arrest facility
The BVG rescue facility foundation is a national pension fund that acts as a catch basin and safety net for the 2nd pillar on behalf of the federal government. Without exception, it insures every employer willing to join and every single person willing to join, provided they meet the legal requirements.
Furthermore, the Foundation for the Auffangeinrichtung accepts vested benefits from people who either do not provide any information on the use of the vested benefits when leaving a pension fund or who can no longer be contacted.
See vested benefits.
See insurance card or pension card.
The retirement credits are credited to the basic plan. In addition, you can buy in missing contribution years through voluntary purchases.
For every active member there is a contribution obligation consisting of employee and employer contribution. The employee contribution depends on the plan variant chosen, the employer contribution depends on the age. Together they form the retirement credit. The employee's contribution is deducted directly from the salary and credited to the Unilever Switzerland pension fund together with the employer's contribution.
Exemption from contributions
Entitlement to exemption from contributions arises with entitlement to the temporary disability pension and expires at the end of the entitlement to the temporary disability pension. In the case of partial disability, the exemption is limited to that part of the insured salary for which the entitlement to the disability pension exists.
The amount of the insured salary is decisive for calculating the contributions in the basic plan.
The Federal Social Insurance Office (FSIO) ensures that the social security network is maintained and adapted to the ever new challenges. The FSIO prepares the ongoing adaptation of the laws to the changed social reality and controls the work of the executive bodies.
Federal Act on Occupational Old-Age, Survivors' and Disability Pension Plans of June 25, 1982.
Ordinance on occupational old-age, survivors' and disability pensions of April 18, 1984 (implementing provisions for the BVG).
Ordinance on the entitlement to tax deductions for contributions to recognized forms of pension provision of November 13, 1985. Regulation of tied private pension provision, the so-called "Pillar 3a".
The coverage ratio is one of the indicators for assessing the financial situation of the pension fund. A coverage ratio of more than 100% means that the assets of the pension fund are higher than the obligations from termination benefits, pensions and technical provisions accounted for according to the technical principles of the pension fund.
The pensioner's capital required to finance the benefits promised in the regulations and the leaving capital of the active employees. It is calculated according to certain actuarial principles and set aside in the pension fund's balance sheet.
Shortfall in coverage
Three pillar concept
The system of old-age, survivors' and disability benefits anchored in the Federal Constitution in 1972. The 1st pillar, consisting of state provision (AHV / IV), is intended to cover the basic need for a living. The 2nd pillar, the occupational pension plan, should, together with the 1st pillar, ensure the continuation of the accustomed standard of living in an appropriate manner. The 3rd pillar (self-provision) is intended to cover individual elective needs. Employed people can take advantage of tax-privileged pension schemes here.
In the event of the death of an insured member, the surviving spouse is entitled to survivors' benefits in the form of a lifelong spouse's pension.
Mandatory transfer of vested benefits in the event of a change of employer from one pension and / or vested benefits institution to another. The transfer is mandatory and affects the entire - mandatory and extra-mandatory part - termination benefit.
In order to obtain the maximum possible retirement assets, active members can make voluntary, tax-privileged payments into the pension fund within the framework of the regulatory and legal requirements.
Vested benefits institution
Vested benefits institutions (banking foundations or insurance companies) serve the purpose of administering vested benefits of individual employees who are unable to contribute their termination benefits to a new pension fund on an interim basis (see also vested benefits account or policy).
Vested benefits account
The vested benefits account is used to maintain pension coverage under the 2nd pillar (BVG) if the employment relationship ends and no new pension fund membership is established. In this case, the pension capital acquired must be transferred to a vested benefits account with a vested benefits institution. A vested benefits account is a personal account on which the saved retirement savings can be “parked” in the event of vested benefits.
Insured persons who leave the pension fund before an insured event occurs are entitled to a termination benefit, the vested benefits. This benefit serves to maintain pension coverage and must be used for a specific purpose. It will either be transferred to the new employer's pension fund or to a vested benefits account. When moving abroad, special legal regulations apply.
The basic salary is the contractually agreed annual salary including a possible 13th month's salary, unless otherwise regulated. The basic wage does not include payments for overtime, bonuses, child allowances, sales or profit bonuses and other allowances of a one-off or temporary nature.
An insured member who, as a result of illness, a handicap or an accident, is no longer able to work in his previous employment or any other gainful occupation and therefore receives a full or partial disability pension from us.
This abbreviation stands for "Invalidity" or for the state "Invalidenversicherung" in the context of the 1st pillar. Invalidity is the total or partial incapacity for work caused by physical or psychological damage to health. It also includes incapacity for work as a result of a birth defect.
The retirement benefits of the occupational pension scheme (2nd pillar) and the 3rd pillar are financed according to the funded system. This is based on an individual savings process in which the retirement capital is formed through contribution payments and interest income.
The lump-sum plan works in the same way as the basic plan, only the shift allowances are insured. The employee and employer contributions are levied on the shift allowances, credited to the individual account at the pension fund and earn interest. In the event of retirement, disability, death or leaving the company, the capital saved is paid out. On retirement, however, it can also be converted into a lifelong pension. The funds can also be used in the context of the Home Ownership Promotion Act to purchase residential property.
Anyone who receives an old-age, survivor's or disability pension can receive a child's pension in addition to the pension. Eligible are children up to the age of 18 or, if they are in training, up to the age of 25. A child's pension is also paid out if the insured person dies and the conditions for receiving this benefit continue to apply.
Early retirement account
If you have bought in full benefits in the basic plan, you have the option of building up a regulatory early retirement in the early retirement account. This is done by means of voluntary, tax-privileged purchases which are credited to this account. It is important to know that if you buy into this account, you also have to retire early.
The coordination deduction is required to calculate the insured or coordinated salary and is basically the component of the salary that is already covered by the AHV. Basic salary minus coordination deduction results in the insured salary. At the Unilever pension fund, the coordination deduction corresponds to the maximum annual AHV pension. A special calculation is used for basic wages below CHF 85,320.
See coordination deduction.
Defined benefit plan
The defined benefit plan, with defined performance targets depending on the last insured salary.
See insured wages or basic wages.
The mandatory part is the statutory minimum pension in accordance with the Federal Law on Occupational Old-Age, Survivors' and Disability Pension Plans (BVG) in which all employees subject to the AHV must be insured if the permanent or fixed-term employment relationship lasts longer than three months and the gross annual salary is between Fr . 21'330 and Fr. 85'320 (as of 2019). In any case, the Unilever Switzerland pension fund provides at least the benefits required by law.
The Board of Trustees decides annually on the adjustment of the current pensions within the framework of the financial possibilities. There is no legal claim to this. We reserve the right to make adjustments to the pensions based on the statutory minimum requirements.
The pension certificate is a certificate of the pension payments received and is used to prepare the income tax return. This is sent annually in January to all pensioners or, due to a special situation, individually during the year by the Unilever Switzerland Pension Fund.
In the case of regulatory early retirement, a bridging pension can be paid until the regular AHV pension is due. The prerequisite is that the provisions of the regulations are met. It corresponds to the amount of the AHV pension calculated on the basis of the salary at the time of early retirement.
The extra-mandatory part is the part of the saved retirement assets that exceeds the statutory minimum requirements (mandatory part). This includes the insurance of salary components above the statutory maximum insured annual salary of 85,320 francs, higher contributions or a lower coordination deduction than stipulated by law and interest on retirement assets that exceeds the BVG minimum interest rate.
Pay as you go
In the pay-as-you-go system, the payments made by the current contributors are used to make payments to today's beneficiaries. The services to today's contributors must be provided by later contributors. (Keyword: "Generational Contract"). The first pillar is financed according to this principle.
The conversion rate is the percentage of the saved retirement assets that is paid out to the retired person annually as a lifelong annuity. The regulatory conversion rate for the Unilever Switzerland pension fund is between 4.45% (age 58) and 5.35% (age 65).
Underfunding exists if the actuarially necessary pension capital (cover capital and necessary technical provisions) is not covered by the assets of the pension fund. However, underfunding should not be equated with insolvency, as many of the pension fund obligations will only arise in the future.
The insured salary is decisive for the calculation of contributions and benefits in the basic plan. The insured salary is the basic salary minus the coordination deduction set by the Board of Trustees.
The personal insurance card contains the most important information on occupational benefits at the Unilever Switzerland pension fund and provides the member with information about their individual insurance conditions, in particular the benefits, the salary subject to contributions, the member's contributions and the vested benefits. If there is a discrepancy between the insurance certificate and the valid regulations, the latter is decisive.
See retirement savings.
See child pension.
Widow / widower
A widow or widower is the surviving spouse of a deceased pension fund member and is entitled to a spouse's pension.
Promotion of home ownership (WEF)
A possibility created by the legislator within the framework of the BVG to withdraw or pledge funds from the occupational pension scheme in whole or in part to finance owner-occupied residential property and / or to repay mortgage loans.
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