Case description

Simple case:
benefit scheme of a fairly small business

The B. Hurni AG Joinery Company of Burgdorf builds kitchens and employs 34 persons. One of them is Vreni Wyss, a payroll accountant. The company achieves annual sales worth around 7.2 million CHF. It has its own registered benefit scheme and the risk benefits are reinsured. The total coordinated wages under LOB for the year 2020 stood at CHF 1,284,188.- and the total pension credit balances for the year 2020 at CHF 180,697.-. This is equivalent to 14.07% of the coordinated wages. The benefit scheme will therefore be able to apply for a subsidy in respect of an unfavourable age structure.

How must it proceed to settle up with the Guarantee Fund? As we have seen the basis is the pension account, the balance sheet, the operating account and possibly the notes to the annual statement of account.

LOB pension account for the occupational benefits foundation of B. Hurni AG, Burgdorf

LOB pension account of Vreni Wyss

  • The example of Vreni Wyss shows the information which a correct pension account must contain: in addition to the personal particulars required for the individual pension account, the basic information for the year concerned, i.e. age, annual salary, period. In addition, the pro rata details for the period (coordinated wage, pension credits as % and in CHF, interest as % and in CHF, pension credit balance at end of period) and, where appropriate, a contributed pension credit balance.

Recapitulation of pension accounts

  • For the settlement with the Guarantee Fund we require a total of all the pension accounts of the occupational benefits foundation of B. Hurni AG. This summary covers all the employees above LOB age 25 and must give us the total figure for coordinated wages pro rata and the pension credit balances pro rata.

Occupational benefits foundation of B. Hurni AG, Burgdorf

  • Recapitulation of pension accounts 2020, page 4 and LOB pension account of Vreni Wyss (individual particulars of the insured person from LOB payment age).

(applies only to benefit schemes registered under Art. 48 LOB)

  • Enter the total of all coordinated wages even in the case of benefit schemes for several firms on lines 1.1/2.1 and 2.3 and the 0.08% contribution from 1.1 on line 1.2.
  • Enter the total of all pension credit balances pro rata on lines 2.4 and 2.6.
  • Calculate 14% of the coordinated wages entitled to a subsidy shown on 2.3 in 2.7 and calculate the difference from 2.6. Enter the resulting CHF 911.- (subsidy for unfavourable age structure) on the outer right hand side of 2.8.

(applies to all benefit schemes)

Now complete Part B using the balance sheet, operating accounts and notes to the annual statement of account.

  • Enter the total of all regulatory termination benefits under Art. 2 FZG on line 3.1. Add the corresponding reporting date 31.12.xx. As a general rule, this is 31.12 in the assessment year. In an exceptional case, enter the latest value calculated according to Art. 24 FZG.
  • Enter the sum of the pension payments (retirement, disability, spouses, children’s and orphan’s pensions) from the operating account or pension bookkeeping for the assessment year on line 3.2 and multiply by 10.
  • Enter the total from lines 3.1 and 3.2 on line 3.3 and the contribution of 0.005%, calculated on the total of line 3.3 on the outer right hand side of line 3.4. (For the years 2011 – 2013, the effective contribution rate was 0.01%. From assessment year 2014, the contribution rate is 0.005%)
  • Enter the difference between the contributions due and the subsidy (lines 1.2 plus 3.4 less 2.8) on line 4.1 in favour of the Guarantee Fund (any balance in favour of the benefit scheme must be entered on line 4.2).
  • Stamp and signatures of the benefit scheme and audit office. Send in the form and pay the contribution due (any balance in favour of the benefit scheme will be credited by the Guarantee Fund).