History and development of the LOB Guarantee Fund
The New Millennium
New provisions on pension sharing on divorce take effect as of 1 January 2017. Pension funds and vested benefits institutions are newly required to notify the 2nd Pillar Central Office every January all holders of pension assets under their management in December.
The first revised text of the LOB stipulates that credit balances held in portable schemes which have not been claimed within a time limit of 10 years after the normal retirement age are to be transferred to the Guarantee Fund. The Guarantee Fund uses these credit balances to finance th 2th Pillar Central Office. The Guarantee Fund is also required to refund to the AHV Equalization Funds the costs incurred by them for the purpose of checking employers' LOB affiliation.
The Guarantee Fund became the liaison office for occupational benefits under the bilateral agreements with the Member States of the EU and EFTA (European Free Trade Association).
Entry into force for the year 2000 of the contribution system introduced with the extension of insolvency cover; under this new system, no longer just the registered benefit schemes but all those governed by the Vesting Law pay contributions to the Guarantee Fund. Two separate contributions are levied; apart from the coordinated salaries, leaving benefits and pension benefits are now also the basis of assessment.