To help companies adapt their pension funds to the structural changes that are reshaping the second pillar of Switzerland's social security system, Edmond de Rothschild (Suisse) SA is adding a new product to its offering in this area: semi-independent pension plans developed in association with the joint foundation Tellco Pensinvest.
The Bank is thus expanding its employee benefits capability, a segment it moved into in 2012. So far the Bank's products have included management of individuals' vested benefits and extra-mandatory (1e) plans for small and medium-sized businesses and senior executives.
The semi-independent model now proposed represents a choice alternative to the existing joint solutions for companies of all sizes in the Lake Geneva area. In the new structure, the associated firms manage their own pension funds while a joint commission decides on benefits and contributions, sets and implements the investment strategy and fine-tunes the reinsurance of disability and death risks. "In a fast-changing employee benefits environment, the semi-independent, jointly operated fund model that we propose satisfies the need for a variety of individual and joint solutions in this area to cover the requirements of all the participants," says Alexandre Michellod, head of the Occupational Benefits unit of Edmond de Rothschild (Suisse) SA.
The accounting and back-office services of this jointly operated pension fund will be provided by Tellco Prévoyance SA. Edmond de Rothschild (Suisse) SA will be responsible for managing its assets, using nationally compliant OPP2 siam investment strategies. "This cooperation agreement with Tellco will provide the associated companies with added value while enabling them to reduce the overheads and financial charges involved in administering a pension fund," Michellod adds.
Hans Düring, founder of Tellco Prévoyance SA is equally enthusiastic. "We are proud to join forces with a bank like Edmond de Rothschild," he says. This link-up will create the momentum needed to address the pension fund concerns of companies large and small across Switzerland.