Innovative management scheme: the advantages of a 1e plan

In usu­al manage­ment bene­fit plans, all savings are inve­sted joint­ly by the pen­si­on fund for all employees. 1e manage­ment plans dif­fer from ordi­na­ry manage­ment bene­fit plans in this respect. In 1e plans, the insu­red per­son choo­ses the invest­ment stra­te­gy for his or her pen­si­on assets. The insu­red per­son can choo­se the invest­ment stra­te­gy that best suits their per­so­nal situa­ti­on. The pen­si­on fund com­mis­si­on can offer up to ten dif­fe­rent invest­ment stra­te­gies for the insu­red to choo­se from. By law, one of the­se must be low-risk.

Numerous advantages of 1e plans

Protection from redistribution

A big advan­ta­ge of 1e plans is the pro­tec­tion against redis­tri­bu­ti­on. The insu­red per­sons are ful­ly credi­ted with their returns. Not­hing is diver­ted to finan­ce exces­si­ve pen­si­on pro­mi­ses from the BVG man­da­to­ry plan. Moreo­ver, with a 1e plan, a com­pa­ny can posi­ti­on its­elf as an attrac­ti­ve employ­er for the next genera­ti­on of employees. It pro­vi­des the recrui­t­ing depart­ment with a sales argu­ment that will help your com­pa­ny to dif­fe­ren­tia­te its­elf from others on the job mar­ket.

Restructuring risks are no longer an issue

The pen­si­on insti­tu­ti­on does not have to gua­ran­tee a mini­mum vested bene­fit. Mem­bers of 1e plans must bear any los­ses them­sel­ves. Accord­in­gly, it is not pos­si­ble for the collec­ti­ve foun­da­ti­on to run into a short­fall in cover. Rest­ruc­tu­ring risks for the affi­lia­ted com­pa­nies and their insu­red per­sons are com­ple­te­ly eli­mi­na­ted for the sala­ries insu­red under the 1e plan. The balan­ce sheet can be relie­ved of pen­si­on obli­ga­ti­ons by intro­du­cing a 1e plan, which incre­a­ses the equi­ty ratio and results in a bet­ter rating (IFRS or US-GAAP accoun­ting).

Purchasing potential can be increased

1e plans start with a sala­ry of 127’980 Swiss francs. The upper sala­ry limit is 853’200 Swiss francs. This trans­la­tes into a maxi­mum of CHF 725’220 in sala­ry com­pon­ents that can be insu­red. Depen­ding on the type of pen­si­on solu­ti­on you have had so far, you are able to signi­fi­cant­ly incre­a­se your purcha­sing poten­ti­al with a 1e plan. The­se volun­ta­ry purcha­ses are very popu­lar with the insu­red in order to save taxes. Sin­ce the­re is no pos­si­bi­li­ty of redis­tri­bu­ting pen­si­on assets from acti­ve mem­bers to pen­sio­ners, purcha­ses in 1e plans are much more attrac­ti­ve than in con­ven­tio­nal pen­si­on fund solu­ti­ons.

Lower risk costs thanks to low-risk collective

The pro­ba­bi­li­ty that insu­red per­sons in 1e plans will recei­ve bene­fits for the risks of death or disa­bi­li­ty befo­re reti­re­ment is signi­fi­cant­ly lower than in the BVG man­da­to­ry plan. The risk pre­mi­ums are con­se­quent­ly often signi­fi­cant­ly lower than for nor­mal pen­si­on funds.

PS: The insuran­ce princip­le must be obser­ved with 1e plans as well. At least 4 per­cent of total pre­mi­ums must be used to insu­re the risks of death and disa­bi­li­ty.