The evolution of financial investments on 30 April 2020

In a context marked by market volatility and economic incertitude, it is essential that your Pension Fund stays the course and does everything possible to fulfil its obligations to its policy holders and affiliates.

 

The Foundation Patrimonia’s investment strategy is defined on the basis of a pension fund risk tolerance analysis. It is designed to weather periods of crisis such as the Covid-19. Thus, the direct real estate investments and our constantly prudent strategy relating to shares and bonds have allowed us to limit losses when the markets fell during the 1st trimester of 2020. Although the current crisis has swept away the results recorded for 2019, the Pension Fund’s financial stability is ensured.

 

The allocation of Patrimonia’s assets, which is both prudent and diversified, is constructed in a manner that allows the pension fund to ride out such crises without prejudice for its long-term financial equilibrium. The management strategy remains unchanged, in particular in regard to rebalancing between asset classes, currency hedging and the anticipation of market recovery and its opportunities.

A task force was set up at the beginning of the crisis and risk tolerance was regularly monitored by the Foundation Board who constantly monitors market evolution and evaluates the situation. The Foundation Board is in permanent contact with its counsellors and asset managers and places the greatest importance on security and the diversification of investments.

This strategy has resulted in a monthly performance for April of +3.33%, bringing the annual performance as of 30.04.2020 to – 4.08% (Source Global Custodian UBS).  

As of today, the degree of unaudited coverage is estimated to be 101.50%.

In conclusion, the Foundation Patrimonia continues to fulfil its short- and medium-term obligations towards all its stakeholders: persons insured, affiliates and partners.

Because information is the key to confidence, you will find the monthly reporting on the performance of the Foundation Patrimonia’s movable and immovable assets portfolio on our Internet site: Monthly reports

 

 

Annual Report 2019

The Foundation’s Annual Report for 2019 was approved by the Foundation Board on 7 April 2020.

This Report will be sent out in May 2020 to all the affiliated companies and published on our Internet site Downloads.   

Unless provisions to the contrary are made in relation to the current situation, the next Affiliates meetings have been postponed until 2 and 3 September, in Geneva and Lausanne.
Invitations will be sent out to you shortly and we are looking forward to seeing you there.


Partial unemployment and LPP contributions

If an indemnity for partial unemployment is paid to insured employees in the framework of the mandatory occupational pension fund in the sense of Art. 31 LACI (law on unemployment insurance), both employers and employees must continue to pay the totality of the legal and contractual  contributions to the benefits institution – corresponding to the normal working hours – (see Art. 37 point C LACI); the contributions for the mandatory and voluntary occupational pension fund remain due.

In other words, the insured person’s previous coordinated salary continues to be applicable in cases of partial unemployment; a reduction of the coordinated salary following partial unemployment is not authorised by law. According to current theory, it is a case of the application of Art. 8 para 3 LPP (validity of the previous coordinated salary in the case of a temporary annual salary reduction due to “unemployment”).

The employers’ contributions to the unemployment insurance are not returned (see Art. 39 para 2 b) LACI in comparison with Art. 61a Unemployment Insurance Ordinance, OACI) conversely. However, the employer still has the right to deduct the totality of the employee contribution (employee contribution in the sense of Art. 66, para 1 LPP) from the salary (or the partial unemployment indemnity), unless expressly agreed (in the employment contract) (see Art. 37 point C LACI).

Consequently, in the case of partial unemployment, there is no change in the occupational pension fund for the parties concerned (employer, employee, pension plan). The salary declared previously and covered by insurance in the framework of the occupational pension plan and the amount of the contributions remain unchanged.

 

Use of the employer’s contribution reserves

On 25 March 2020, the Federal Council decided, to allow employers, on a temporary basis, to have recourse to the contribution reserves they have built up to pay employees’ LPP contributions.

During a six-month period, employers may pay the employees’ share of the LPP contributions using their contribution reserve.

The employer must inform the pension fund institution, in writing, of their use of the employer’s contribution reserve to pay the employees’ contributions.

Modifications to the pension fund’s rules and regulations or the affiliation contract are unnecessary.

This measure is destined to help employers overcome any cash shortfall.

It has no negative effects for employees: The employer continues to deduct the employees’ contributions in the normal way from their salaries and the pension fund institution credits all the contributions in the employees’ favour.

Your contact within the Foundation Patrimonia
Thomas Vuagniaux, Chief Accountant
T +41 58 806 08 14
thomas.vuagniaux@patrimonia.ch

Payment of Contributions 


We are aware that, in the current situation, certain companies will have difficulty paying their LPP contributions.

A few clarifications on this subject:

  1. The LPP contributions are considered to be preferential debts. Therefore, their payment is particularly important, all the more so as they are amounts destined for employee pension funds.
  1. The contribution invoices will be sent out by the Pension Fund according to the timetable chosen by the affiliated company; it is a legal obligation.
  2. The contributions deducted from the salaries of the company’s employees must be paid to the Pension Fund without delay.
  3. We recommend that companies pay monthly instalments, in order to spread the payments over time and thereby avoid any possible payment difficulties.
  4. In cases where contribution payments from employers are in arrears, the Pension Fund has the legal obligation to institute summons proceedings.
  5. If a company encounters difficulties in the payment of contributions, we may agree on a payment plan that takes the financial situation into consideration and defers the summons proceedings. 

We encourage companies to contact Patrimonia as soon as possible to work out a solution adapted to their situation. 




The whole team at your disposal

 

In the current context of the coronavirus crisis the Foundation Patrimonia has set up a series of organisational measures to ensure the continuation of its activities.

They concern our teams in Geneva and Lausanne and give preference to teleworking and videoconferencing. These measures allow us to maintain the quality of our services and to accompany our clients while ensuring the protection of our staff.

All the managers remain at your disposal to answer your questions and ensure the management of your LPP accounts.

To contact us: T + 41 (0) 58 806 08 00 / info@patrimonia.ch

The Foundation Board, the Direction and the staff of Patrimonia would like to take this opportunity to thank you for your confidence and wish you and your family good health and serenity.