VORSORGE UPDATE
In 2015 interest will be paid on the retirement assets at a rate of 1.75%. Sabina Bieri replaces Alexandra Rufener on the Foundation Board. Eric Wiesmann is the new Vice-Chairman.
Financial situation
After the pleasing development in the stock markets in October and
November, the anticipated year-end rally did not materialise, causing a
fall at Vorsorge RUAG in the return of around 3% as at the end of
November to an estimated 2% in the middle of December. The coverage
ratio before interest on retirement assets remains roughly at the level
of the previous year at around 103.4%.
Despite the volatile financial markets and persistently low interest rates, the return generated to date can still be labelled as attractive owing to the low equity exposure in comparison with other pension funds.
Interest in 2015 and interest rate during the fiscal year of 2016
The market-consistent valuation of the pension capital and the low
investment risks are having a positive effect on the interest on
retirement assets of those currently insured, because this situation has actually enabled the Foundation Board to set the interest on retirement assets in 2015 at the BVG minimum rate of 1.75%. It is therefore
higher for the second time in a row than the interest on pension capital of 1.5%.
There is still a need to set an interest rate applicable to events during the coming fiscal year, such as staff departures and retirements. This will be 0.5% for 2016.
Reconstitution of the Foundation Board
Alexandra Rufener, Vice-Chairwoman and employee representative, already notified the Foundation Board in the middle of the year of her
intention to resign with effect from 31 December 2015. The Foundation
Board and Executive Board would like to thank Alexandra Rufener for her
service to the Foundation and to those currently paying into the system
and those already drawing pensions.
The conference of employee representative presidents of RUAG Switzerland exercised its powers as the relevant election body and voted in Sabina Bieri, Communication Specialist, as her successor. She will take over the existing term of office. Like her predecessor, she comes from the Defence division. We would like to welcome Sabina Bieri aboard.
The Foundation Board also elected employee representative Eric Wiesmann Vice-Chairman.