On 24 September 2017 Swiss voters rejected the first comprehensive pension reform for two decades. As a result, the pressure for reform is building once again since the financial stability of the old-age and survivors' insurance (AHV/AVS, first pillar) and occupational pension funds (BVG/ LPP, second pillar) cannot tolerate any further delay. However, it may be a blessing that the politically proposed coupling of the two pillars has lost momentum. This opens up opportunities for individual reforms of each of these two pillars.
What does the rejection of the 2020 Pension Reform mean for your occupational pension fund? We have compiled some useful information around the impact of the failed reform and the upcoming challenges.
THE END OF ONE REFORM IS THE START OF THE NEXT ONESThe Swiss voters have decided: No to the 2020 Pension Reform. In view of the urgent need for action, this may seem reckless, but it also offers opportunities for new approaches.
Assessment of the situation
CHALLENGES AFTER THE REJECTION OF THE REFORMEven a no has implications, as the social and economic developments of the last few years will continue and bring challenges for occupational pension funds and the pension system as a whole.
Companies and pension funds benefit from our many years of experience as well as our comprehensive international and local know-how in the design and management of pension solutions. We would be pleased to support you in finding the best way to navigate the future for your company and your pension fund.
This is how Mercer can help you:
- Actuarial consulting and valuations
- Adapting scheme documents (contracts, regulations, etc.) and other legal advice
- Foundation board trainings
- Employee communications