"The positive market trend over the course of the year made it possible to recover the loss suffered at the beginning of the COVID-19 crisis and increase the cover ratio," says Werner Wüthrich, Managing Director of the Vita Collective Foundation. The investment return of 5.55% is well above the market. The cover ratio as at December 31, 2020 is 107.9% (previous year: 104.3%). This meant that Vita Collective Foundation was able to build up additional fluctuation reserves. With total assets of over 17 billion, it is one of the largest semi-autonomous joint and collective institutions in Switzerland.
Fairness in the second pillar
Generational fairness in occupational retirement provision plays an important role for the Vita Collective Foundation. It takes concrete measures against redistribution within its scope of possibilities. The Foundation’s long-term financial security and the achievement of an appropriate return on the invested capital take top priority. This is intended to benefit the active insured and pensioners in equal measure. Getting the technical parameters right is important in this regard. As of 31 December 2020, the Collective Foundation reduced the technical interest rate to 1.5%. The Foundation Board has also set the conversion rate to 5.7% as of 1 January 2023.
|Pensioners on own balance sheet||5,013|
|Assets (in CHF million)||17,173|
|Return from asset investment||5.55%|
|Cover ratio I (Art. 44 para. 2 BVV 2)||107.9%|
|Maximum interest rate for mandatory BVG part*||1.50%|
|Maximum interest rate for extra-mandatory BVG part*||1.50%|
|* The amount of interest benefit depends on the date of affiliation with the Foundation.|