A tailor-made supplementary benefit scheme

Unique solutions to fit
individual needs
Supplementary
benefit scheme
Table of contents
2
Individual needs – unique solutions
3
Identify and close pension gaps
4
A tailor-made supplementary benefit scheme
6
Satisfied employees are loyal employees
7
At a glance: advantages for both sides
7
Individual needs – unique solutions
We help you develop a flexible, individual solution.
A supplementary benefit scheme solution from Swisscanto
covers the additional requirements of employees with special
pension needs: in most cases these are employees, whose
benefit coverage often contains considerable gaps, owing to
their higher salary.
you the ways in which you can improve the retirement benefits or risk cover in a targeted fashion. Our proposals coordinate the supplementary benefit scheme with the overall system of social insurance and take into account the legal
opportunities for tax deductions.
In a solution that best meets the individual needs of your
company and your employees, we seamlessly combine basic
occupational benefits insurance with the supplementary
benefit scheme to create an harmonious whole.
Flexible contract modules available from Swisscanto for
designing a tailor-made pension plan enable a rapid reaction
to changing needs and framework conditions. You will continue to enjoy the familiar advantages of your basic occupational benefit scheme – such as the advance withdrawal or
pledging of pension capital for the promotion of home ownership – in the supplementary benefit scheme, too.
In line with your needs, which can vary widely depending on
your company and personnel structure, Swisscanto will show
Coordination of social insurances (in the case of illness)
100
80
60
40
Voluntary supplementary benefits
insurance (LOB1)
Continued
salary payments
employer
Daily sickness
benefits insurance (KKV)
20
Retirement benefits from
supplementary benefits insurance
Disability pension (LOB)
Retirement pension (LOB)
Disability pension (AI)
Retirement pension (OASI)
0
14/30/60/90 days
1
730 days
Age 65/64
Death
Dependent on the coordination provisions determined in line with the regulations
3
Identify and close pension gaps
How to avoid pension gaps for higher salaries
With a supplementary benefit scheme solution from Swisscanto, you ensure that employees in the upper salary segment will be
able to maintain their accustomed standard of living even after retirement or in the event of disability. The same applies for
their survivors in the case of death.
The higher the income, the greater the relative
pension gap
In the mandatory LOB insurance, the upper limit for the pensionable salary is set at three times the amount of the maximum
single OASI pension. Salary components in excess of this are
not insured and thus do not count towards building up a
pension. This leads to a loss of income in old age and in the
event of disability.
Taking three different annual salaries as an example (cf. the
adjacent diagram), we clearly see how the benefits from the
first and second pillars (OASI and LOB) fall in relation to the
overall salary and how the pension gap thus grows larger and
larger the more the income rises – even, for example, if we
assume a pension target of 80% of the final salary.
4
% of the final salary
100
90
Pension target: 80% of the final salary
80
70
60
50
40
30
Pension gap
20
LOB
10
OASI
Annual salary in CHF thousand
40
75
150
Missing contributions in OASI or LOB
Particularly large gaps arise for employees with higher salaries if there are missing years of contributions in the first pillar
(OASI) or if the contributions under the second pillar (LOB) do
not cover the entire period of gainful employment. In such
cases, when retirement age is reached, only a reduced retirement pension is paid out. With the supplementary benefit
scheme, this can be supplemented up to the amount of the
pension target; missing years of contributions can be purchased (with attendant tax privileges).
Variable salary components
For employees with higher salaries especially, non-guaranteed salary components – bonuses, gratuities, commissions,
etc. – represent an ever more substantial part of the total
remuneration. However, the systems used to calculate the
variable salary components vary from company to company.
Together with your Helvetia advisor you develop an appropriate solution that takes due account of the salary system in
your company and the needs of your employees.
Employees with higher salaries who wish to take early retirement also have to accept a detrimental reduction in pension
income. This could mean that higher private outlays (such as
amortisation of residential property, mortgage interest, etc.)
or plans that have been postponed until after retirement can
no longer be financed. Corresponding components in the
supplementary occupational benefits insurance make it possible to fulfil the dream of early retirement – while at the same
time utilising the legal tax advantages.
5
A tailor-made supplementary benefit scheme
All-encompassing or separate solution? Let us advise you!
All-encompassing solution within the existing
basic occupational benefit scheme LOB contract
Your company’s supplementary benefit scheme solution can
quite simply take the form of its own separate category within
your existing basic occupational benefit scheme LOB contract
(“all-encompassing solution”).
With an all-encompassing solution, you supplement your
basic occupational benefit scheme according to the LOB
mandatory insurance with one or more additional categories.
Employees whose salaries exceed the mandatory LOB limits
are insured within these categories. The benefits can be
designed to ideally meet the needs of the groups of employees defined in relation to these categories.
In all-encompassing solutions the extra-mandatory benefits
are integrated in the basic occupational benefit scheme
contract; this contract in its entirety is subject to the legal
minimum requirements of the LOB. The elected joint board of
trustees is responsible for taking important decisions on all the
categories included in the contract. Since only one contract
exists and only one policy for each employee, the costs
defined per contract and policy are incurred one time only.
All-encompassing solution: one contract of association only
Mandatory LOB benefits
Supplementary (extra-mandatory) benefits;
integrated in the basic contract
6
Separate supplementary benefit scheme contract
with Swisscanto Supra
There may be good reasons for concluding a separate supplementary employee benefit scheme contract. Many companies prefer this possibility to an all-encompassing solution. In
such cases, Swisscanto Supra is available: Swisscanto Supra
is a collective foundation for supplementary benefit schemes.
It exclusively provides benefits in the extra-mandatory area.
The design of pension benefits is flexible, as this collective
foundation is not bound by the minimum requirements of the
LOB mandatory insurance. This opens up all kinds of possibilities for you to insure tailor-made supplementary pension
benefits for your employees with individual benefit needs. For
example, special financing models can be agreed or additional benefit components can be included in order to ideally
meet the needs of the insured employees.
As the employer, you decide which gaps you want to close
and to what extent, and you determine the right mix for your
company.
You as employer likewise determine which employees should
participate in the supplementary benefit scheme: executive
management, middle management, other specific groups
of employees – and not forgetting the owner, if he/she so
desires.
Solution with separate contracts
Mandatory LOB benefits
(basic contract)
Supplementary
(extra-mandatory) benefits;
Swisscanto Supra contract)
Satisfied employees are loyal employees
Make it possible.
A generous pension solution will give your company a competitive edge in terms of staff recruitment. Because a well-developed supplementary benefit scheme is often the decisive
factor when it comes to choosing a position – especially for
highly qualified, specialist employees.
Mutual appreciation creates a bond
A well-developed supplementary benefit scheme is a core
aspect of a sustainable HR policy. As an employer, you
therefore raise your company’s profile externally; you show
your employees with special benefit needs that you appreciate them and boost their identification with the corporate
values. All of which leads to a strong mutual bond of loyalty
– and one that is not just based on material values.
As a self-employed employer, you can also join the employee
benefit scheme of your staff and personally benefit from the
legal tax advantages.
At a glance: advantages for both sides
Advantages for the employees:
Advantages for the employer:
• Pension gaps can be closed; it is largely possible to
maintain the accustomed standard of living in the
event of an insurance case.
• You make your company stand out as an attractive
and socially aware employer, thus creating advantages in terms of staff recruitment.
• The benefits are coordinated with other social
insurances.
• You bind key employees more closely to the
company.
• The contributions and purchase sums are tax
deductible.
• The expense for the supplementary benefit scheme is
tax deductible.
• The supplementary benefits scheme may facilitate an
early retirement.
• As the company owner, you can also have yourself
insured and thus benefit from additional tax advantages.
• Advantages such as the capital option or advanced
withdrawal for the promotion of home ownership also
apply in the supplementary benefit scheme.
• A separate contract allows you to maintain the necessary discretion.
• Employees benefit from the attractive group rate.
7
10.14
Give us a call!
To develop an individual solution for both mandatory
insurance and the supplementary benefit scheme that meets
the needs of your company, please contact the specialist of
Swisscanto or of your Cantonal Bank. Give us a call to
make sure the Swisscanto supplementary benefit scheme
solution is a perfect fit for you and your employees.
Swisscanto and Swisscanto Supra
Collective Foundations of the Cantonal Banks
St. Alban-Anlage 26, P.O. Box 3855, 4002 Basel
Telephone 058 280 26 66
Fax
058 280 29 77
More information at
www.swisscanto-collective-foundation.ch