Which pension solution is right for your company?

At Argos, we know that choosing a pension insurance provider can be complicated. Although the number of pension funds is decreasing year by year, there are still some 2,000 pension funds that insure Swiss professionals and individuals on a daily basis.

What factors need to be taken into account?

1. Premiums There are currently three types of premium used to finance benefits for insured persons.
   • Risk premiums are used to finance benefits in the event of death or disability. Although these premiums tend to vary widely from foundation to foundation, the “Pensions Vieillesse 2020” reform provides for a ceiling so that they do not exceed a certain percentage of the claim in question.
   • Fee premiums enable pension funds to offset the costs of managing and administering their clients’ accounts. They are necessary to ensure the smooth running of the institutions.
   • Savings bonuses ensure that you receive bonuses as part of your retirement savings. These bonuses represent a percentage of your salary, which will be paid back to you with interest when you retire.
2. Security The very essence of a pension fund is to provide you with guarantees for your future. The security provided by a foundation is determined by its degree of coverage. This is based on the institution’s financial balance sheet, in order to assess its reliability in insuring you. The higher the level of coverage, the more reliable the insurance. In addition, the technical rate is a contractual rate that determines the interest you will receive at maturity. So, for the same level of coverage, the institution with the lowest technical rate will offer you greater security because of its lower need for returns.
3. Returns Since the mission of a pension fund is to provide benefits for your retirement, there are two factors to consider when making your choice:
   • Interest credited to your retirement savings capital
   • Conversion rate
   Interest is determined by the technical rate set when you sign your pension contract. It determines the amount of your retirement savings capital. The higher the rate, the higher your capital. The conversion rate, on the other hand, determines the amount of your annual pension payments. Thus, the lower the rate, the smaller the shares distributed, but the longer your capital will last.
4. Changing pension funds Each pension fund has its own specific offers, but not all of them are suited to your needs. To avoid unpleasant surprises, or to make it easier for you to find the most suitable offer, use the services of an insurance broker. At Argos, we are committed to finding the most attractive pension solution for your situation and needs. In practice, changes of institution take place at the beginning of the year, and contract termination documents must be submitted to the current provider by June 30, so don’t wait any longer!