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Fonds de Pensions Nestlé Quick Reference Guide 2011
The 2011 edition of this quick reference guide is illustrated with photos of our colleagues of the Pension Fund
Administration. Every person was invited to present an object that related to their hobby or to one of their
favourite activities.
This is our way of demonstrating that we commit personally for the quality of service towards our members
and pension beneficiaries.
This booklet is available in English, French and German.
Cette brochure est disponible en français, allemand et anglais.
Diese Broschüre ist verfügbar in den Sprachen Deutsch, Französisch und Englisch.
In case of doubt or differences of interpretation, the French version shall prevail over the English and
the German text.
Contact
Fonds de Pensions Nestlé
P. O. Box 353
Avenue Nestlé 55
1800 Vevey (Switzerland)Phone number : +41 21 924 26 38
E-mail : [email protected]
Intranet : http://intranet.nestle.com/centre/pensionsE
Impressum© January 2011 / Fonds de Pensions Nestlé
Design by : Fonds de Pensions Nestlé, Vevey, Switzerland
Contents
1. Introduction 1
2. Definitions and abbreviations 2
3. Contributions 4
4. Employer credits 6
5. Additional voluntary contributions 8
6. Retirement savings capital 12
7. Pension objectives 14
8. Retirement benefits 18
9. Disability benefits 25
10. Death benefits 29
11. Lump sum option 35
12. Termination of employment 36
13. Home ownership 40
14. Divorce 41
15. Unpaid leave 41
16. Transfers to other Nestlé companies outside Switzerland 42
17. Adjustment of pensions 43
18. Overinsurance 43
Fabien Ducret Head of AccountingCompetitive rifle shooting requires a great degree of control and skill. I love this sport as nothing is taken for granted in advance.
Nathalie Billato AccountingNordic walking lets me relax in the outdoors.
Corinne Chassot AccountingI like to recharge my batteries in the mountains with my family.
1
The Fonds de Pensions
Nestlé is managed by
a Foundation Board
comprising representa-
tives of both employers
and members.
1. Introduction
The Fonds de Pensions Nestlé (hereinafter : the Fund) manages all issues concerning
occupational benefits (Swiss 2nd pillar legislation) for members and pension
beneficiaries : retirement, death or disability benefits, vested benefits in case of
termination of employment, contributions, and cash withdrawals for home
ownership.
The Fund is a joint fund which is financed by the active members and their
employers. It is officially registered in the register of occupational pension plans.
The benefits provided by the Fund are at least equal to the minimum benefits
defined by the LOB; in fact, on the whole, they largely exceed the minimum benefits.
Thanks to the commitment of the employer, via the Nestlé Supplementary Pension
Fund (employer’s financing foundation), the Fund is able to offer to its members
good conditions, in particular a favourable reduction in the event of early
retirement.
This quick reference guide describes the benefits provided by the Fund for Nestlé
Group employees in Switzerland.
The benefits provided by the Fund may be supplemented by benefits under OASI/DI,
military insurance, accident insurance and third-party liability insurance policies.
These benefits are not described in this document.
This quick reference guide does not constitute a set of formal Rules relating
to pensions. The Rules of the Nestlé Pension Fund is the official document defining
all legal rights and obligations. This document is supplemented by the following
regulations :
Implementing Regulations on additional voluntary contributions (see p. 8).
Implementing Regulations on cash withdrawals for home ownership (see p. 40).
These texts may be viewed on the intranet or may be obtained from Fund
Administration on request.
Without indication to the contrary the masculine gender encompasses the feminine
and vice versa.
•
•
2 2. Definitions and abbreviations
Affiliation
Affiliation to the Fund is mandatory for all salaried employees as per the provisions
of their employment contract. The earliest possible affiliation is set on 1st January
of the year following each salaried employee’s 17th birthday. Until 31st December
following the 24th birthday or coinciding with this date, the coverage only applies
to the disability or death risks (risk-affiliation). As from 1st January following the
24th birthday, it also covers for the retirement benefits (full affiliation).
Contribution salary
Basic annual salary, including the 13th monthly salary but excluding any profit-
sharing bonus or other variable elements.
Coordination amount
The amount fixed by the Fund to account for the benefits paid by the OASI/DI or
other social security systems.
Interpolation
Ages and years are rounded to a full month. Intermediate values are determined by
interpolation.
LOB
The Swiss Federal Law on Occupational Benefit Plans (French abbreviation : LPP).
LOB age
Current year minus year of birth.
3Member
Active member : salaried employee affiliated to the Fund.
Retired member : person currently receiving a retirement pension or a disability
pension.
Other persons receiving a pension administered by the Fund are not considered
members of the Fund, but pension beneficiaries.
Membership years
Number of years, rounded to the month, since the person became a full member
of the Fund. The employer defines the years of membership for those members
who have years of service with the company without having joined the Fund, in
particular during years of employment with the Nestlé Group in other countries.
OASI/DI
Old Age and Survivors’ Insurance / Disability Insurance. This is the basic Swiss
social security system (1st pillar, French abbreviation : AVS/AI).
Pensionable salary
The pensionable salary is identical to the contribution salary.
Spouse
Legal spouse of the member. Persons who have entered into a registered
partnership according to Swiss law with a member of the Fund are considered
as a spouse.
•
•
The Fund’s intranet site
provides more detailed
information as a
complement to this
quick reference guide.
4 3. Contributions
The Pension Fund sets down three types of contributions :
Risk premiums for death and disability, which are credited to the general risk
provision of the Fund. This provision covers death and disability benefits for
active members. These contributions are not included in the calculation of vested
benefits in the event of termination of employment (see p. 36).
Retirement savings contributions, which are credited to the member’s
retirement savings account A (see p. 12).
Employer credits, which are credited to retirement savings account A
(see p. 6).
1. Below LOB age of 25
The member is exempt from paying contributions; the risk premiums for death and
disability are borne by the Fund.
2. Above LOB age of 25
The member and the employer pay a risk premium for death and disability as well as
a retirement savings contribution (see table below).
Contributions due Employer Member Total
Risk premium for death and disability 0.5 % 0.5 % 1.0 %
Retirement savings contribution 6.0 % 6.0 % 12.0 %
Total 6.5 % 6.5 % 13.0 %
Contributions are fixed as a percentage of the annual contribution salary (see
example on p. 7) and are deducted from the member’s twelve monthly salary
payments. No contribution is deducted from the 13th month’s salary.
•
•
•
Member aged 50
Annual contribution salary CHF 90 000
Monthly salary (13 payments) CHF 6 923
The member’s contribution is calculated based on the annual
contribution salary divided by 12, i.e CHF 90 000 / 12 CHF 7 500
Member’s monthly contribution (CHF 7 500 × 6.5 %) CHF 488
(the contribution is always rounded to the higher franc)
The member’s monthly contribution of CHF 488 is deducted 12 times.
Example
François Kissling Pensions actuary Playing golf allows me to unwind while having fun.
6 4. Employer credits
The employer credit is transferred to retirement savings account A of active Fund
members from the LOB age of 55 and above, if the balance on the member’s
retirement savings account A does not exceed the current value of the retirement
pension objective.
The employer credit is calculated as follows :
1. Before retirement
The employer credit is equal to the difference between :
the present value of the retirement pension objective (see p. 15) calculated in
accordance with the number of membership years and using the factor below, and
the balance of retirement savings account A,
divided by the number of full years until normal retirement age (see p. 18) plus 1,
but limited to 12.0 % of the contribution salary.
The employer credit is thus calculated as follows :
current value of the objective – balance of retirement savings account A
Credit =
max (normal retirement age – LOB age + 1 ; 1)
but up to max. 12.0 % of the contribution salary
Factor for determining the present value of a pension
Age Men Age Women
55 11.288 55 11.190
56 11.691 56 11.629
57 12.117 57 12.094
58 12.570 58 12.585
59 13.053 59 13.105
60 13.570 60 13.656
61 14.126 61 14.240
62 14.727 62 14.860
63 15.378 63 15.519
64 16.088 64 16.186
65 16.866 65 15.727
66 16.430 66 15.260
67 15.986 67 14.785
68 15.534 68 14.302
•
•
7
2. At the time of retirement
The employer credit is equivalent to the difference between :
the present value of the retirement pension objective, calculated on the basis of
the effective number of membership years at the time of retirement (p. 15) and
reduced by 3 % for each year of anticipation before normal retirement age resp.
increased by 3 % by year of deferment compared to normal retirement age
(deferred retirement), and
the balance on retirement savings account A.
•
•
Example
Member, male, LOB age 56
Contribution salary CHF 90 000
Retirement pension objective CHF 50 000
Retirement savings account A CHF 470 000
1. Risk premium
Employer risk premium (0.5 % of CHF 90 000) CHF 450
Member risk premium (0.5 % of CHF 90 000) CHF 450
Total risk premium CHF 900
2. Retirement savings contributions
Employer retirement savings contributions (6.0 % of CHF 90 000) CHF 5 400
Member retirement savings contributions (6.0 % of CHF 90 000) CHF 5 400
Total credit to retirement savings account A CHF 10 800
3. Employer credit
(CHF 50 000 × 11.691) – CHF 470 000Credit = = CHF 11 455 age 65 – age 56 + 1
but up to max. CHF 10 800 ( = 12.0 % of CHF 90 000)
Employer credit credited to retirement savings account A CHF 10 800
Thanks to the employer
credit, the retirement
pension will be at least
equal to the retirement
pension objective.
8 5. Additional voluntary contributions
The additional voluntary contributions are payments made by a member that are
supplementary to statutory contributions (p. 4). They are used for two different
purposes.
Any additional voluntary contributions as well as any amounts transferred from
individual linked pensions (pillar 3a) are first used to offset gaps in pension benefits.
As soon as these gaps in pension benefits are compensated, these payments are
attributed to the pre-financing of an early retirement.
1. Offsetting gaps in pension benefits
Gaps arise when the “full” pension differs from the actual pension shown on the
pension statement. This may be the case if, for example, the member joins the Fund
after the age of 25 or if the member reduces their working hours.
Any additional voluntary contributions are credited to the member’s retirement
savings account B.
The retirement benefits insured by the Fund are increased each time an additional
voluntary contribution is made. In the event of the death of an active member,
the additional voluntary contributions made, including interest, will be included in
the death lump sum, with interest (p. 32).
2. Pre-financing of early retirement
Pre-financing of early retirement is possible as from the age of 25, but only if gaps
in pension benefits have been completely offset.
By pre-financing early retirement, the members may retire earlier by reducing or
entirely compensating any pension reduction resulting from early retirement (p. 19).
Any additional voluntary contributions are credited to the member’s retirement
savings account C.
9Members can also pre-finance a temporary annuity (OASI bridging pension) (p. 22).
This temporary annuity has the purpose to smooth out members’ income until the
entitlement to the OASI pension.
Before making any payment for pre-financing of early retirement, members must fill
in the form named “Pre-financing of early retirement - Statement of Intent” indica-
ting the age or the date of the foreseen early retirement. This form is available on the
Intranet site or may be obtained from the Fund administration.
If members who fully financed an early retirement postpone the early retirement, the
benefits paid may not under any circumstances exceed the legal limit of 105 % of the
retirement pension calculated at normal retirement age (the funding of a temporary
annuity (OASI bridging pension) is not included in the limit of 105 %). In the event of
any excess retirement benefit, the excess benefit will remain the property of the
Fund.
Restrictions
The maximum permitted amount of additional contributions is mentioned at the
back of the pension statement. At the members’ request, the Fund can provide
a payment proposal with the details of the calculation.
Only one additional voluntary contribution may be paid per year. It must be
credited to the Fund before 31 December to be tax-deductible for the current year.
If members have withdrawn part of their assets for the purpose of home ownership,
the amount withdrawn has first to be repaid, prior to making any additional voluntary
contributions.
Additional voluntary contributions to the Fund cannot be withdrawn as a lump
sum three years following the payment in case of retirement (p. 18) or home
ownership (p. 40). As a general rule, any additional voluntary contributions paid in
the three years preceding a lump sum withdrawal will no longer be tax-deductible.
For people who moved to Switzerland from abroad recently and have never before
been affiliated to a Swiss pension fund, additional annual voluntary contributions
may not exceed 20 % of their insured salary during the first five years.
The additional voluntary
contributions enable
the member to improve
his/her benefits and
save a considerable
amount of tax.
10 Tax aspects
On top of the increase in retirement benefits, members paying additional contribu-
tions will also be able to save a considerable amount of tax. Additional voluntary
contributions are treated as pension purchases and can, in principle, be deducted
in full from the taxable income. This enables members to reduce their total tax
payments considerably.
Before making a large payment, it is however advisable to contact the competent tax
authority in order to ensure the tax-deductibility.
These payments are completely independent from Pillar 3a, enabling members to
make Pillar 3a contributions as well as additional voluntary contributions to the Fund
during the same year. Both payments can in principle be deducted in full from the
taxable income.
The table below indicates, for information purposes only and with no commitment
from the Fund, the potential tax savings for a member making additional voluntary
contributions :
Achievable tax savings (in CHF)
Additional voluntarycontributions made 10 000 30 000 50 000
Taxable single married single married single married income no children 2 children no children 2 children no children 2 children
50 000 2 320 1 728 6 150 4 294 8 420 5 504
75 000 2 906 2 158 7 842 5 897 11 931 8 795
100 000 3 453 2 357 9 874 6 849 14 993 10 780
150 000 4 071 3 348 11 976 9 496 19 430 14 798
200 000 4 519 3 686 13 432 10 850 21 857 17 999
Basis = Commune of Vevey, January 2011 Other tax savings calculations (communes, amounts, etc.) are available on banks websites or by contacting your local tax authority or a tax advisor.
More information can be found in the implementing regulations dealing specifically
with this topic. This document is available upon request or can be found on our
intranet site.
Isabelle Lea IT-specialistReading to relax.
Pierre Briand IT-specialistTaking my mind off things by flying a radio-controlled helicopter.
12 6. Retirement savings capital
Description
For each active member, the Fund manages four accounts, which together consti-
tute the member’s retirement savings capital :
Retirement savings account A, credited with the retirement savings contributions
of both the active member and the employer (see p. 4), as well as by the employer
credits (see p. 6);
Retirement savings account B, credited with vested benefits carried over from
previous pension funds, with additional voluntary contributions used to offset
gaps in pension benefits (see p. 8) and with any benefits from the ex-spouse
following a divorce (see p. 41);
Retirement savings account C, credited with any additional voluntary contributions
paid in by the member to pre-finance early retirement (see p. 8);
Retirement savings account D, which registers any withdrawals and repayments
made by the member for the purposes of home ownership or in the event of
divorce (see p. 40).
These four accounts are furthermore credited (account D : debited) :
with interest at the minimum rate;
with a participation in surplus.
The minimum interest rate and that of the participation in surplus as well as their
method of allocation are set by the Foundation Board of the Fund and depend on
accumulated investment surpluses of the Fund.
Use
Retirement savings accounts A, B and D are used to finance benefits due from the
Fund in the event of retirement (p. 18), disability (p. 25) or death (p. 29).
In case of full retirement, total disability or death, the persons qualifying for a benefit
from the Pension Fund receive, in addition, the whole of the savings capital accrued
on the active member’s retirement savings account C.
The retirement savings capital obtained by adding these four accounts constitutes
the vested benefits in case of termination of employment (see p. 36).
•
•
•
•
•
•
13
Member retirement savings contributions 6.0 %
Employer retirement savings contributions 6.0 %
Employer credits (subject to conditions)
Minimum interest
Participation in surplus
Balance
of account A+ =
Vested benefits carried over by the member from previous pension funds
Any benefits from the ex-spouse following a divorce
Additional voluntary contributions to offset gaps in pension benefits
Minimum interest
Participation in surplus
Balance
of account B+ =
Additional voluntary contributions to pre-finance early retirement
Minimum interest
Participation in surplus
Balance
of account C+ =
Early withdrawals and repayments (home ownership, divorce)
Minimum interest
Participation in surplus
Balance
of account D+ =
Retirement
savings capital
+
+
–
+
+
+
+
=
=
=
=
+
+
–
Vested benefits =
How do the retirement savings accounts operate
14 7. Pension objectives
A distinction is made between two pension objectives : the retirement pension
objective and the disability pension objective.
These objectives determine the level of benefits in the event of retirement (p. 18),
disability (p. 25) and death (p. 29).
1. Disability pension objective
The disability pension objective is calculated as follows :
Coordination amount
80 % of pensionable salary up to CHF 60 000
+ 70 % of the part of pensionable salary exceeding CHF 60 000
less a coordination amount determined by the pensionable salary
as per the table below
Pensionable Coordination Pensionsable Coordination Pensionable Coordination
salary amount salary amount salary amount
Minimum coordination CHF 50 000 CHF 21 000 CHF 70 000 CHF 25 000
amount of CHF 18 000 for CHF 51 000 CHF 21 200 CHF 71 000 CHF 25 200
salaries under CHF 35 000 CHF 52 000 CHF 21 400 CHF 72 000 CHF 25 400
CHF 53 000 CHF 21 600 CHF 73 000 CHF 25 600
CHF 54 000 CHF 21 800 CHF 74 000 CHF 25 800
CHF 35 000 CHF 18 000 CHF 55 000 CHF 22 000 CHF 75 000 CHF 26 000
CHF 36 000 CHF 18 200 CHF 56 000 CHF 22 200 CHF 76 000 CHF 26 200
CHF 37 000 CHF 18 400 CHF 57 000 CHF 22 400 CHF 77 000 CHF 26 400
CHF 38 000 CHF 18 600 CHF 58 000 CHF 22 600 CHF 78 000 CHF 26 600
CHF 39 000 CHF 18 800 CHF 59 000 CHF 22 800 CHF 79 000 CHF 26 800
CHF 40 000 CHF 19 000 CHF 60 000 CHF 23 000 CHF 80 000 CHF 27 000
CHF 41 000 CHF 19 200 CHF 61 000 CHF 23 200 CHF 81 000 CHF 27 200
CHF 42 000 CHF 19 400 CHF 62 000 CHF 23 400 CHF 82 000 CHF 27 400
CHF 43 000 CHF 19 600 CHF 63 000 CHF 23 600 over CHF 83 000 CHF 27 500
CHF 44 000 CHF 19 800 CHF 64 000 CHF 23 800
CHF 45 000 CHF 20 000 CHF 65 000 CHF 24 000
CHF 46 000 CHF 20 200 CHF 66 000 CHF 24 200
CHF 47 000 CHF 20 400 CHF 67 000 CHF 24 400 Maximum coordination
CHF 48 000 CHF 20 600 CHF 68 000 CHF 24 600 amount of CHF 27 500 for
CHF 49 000 CHF 20 800 CHF 69 000 CHF 24 800 salaries over CHF 83 000
In the case of part-time employment, the insured salary is revalued to 100 %
and the disability pension objective is adjusted to the average employment rate
calculated up to retirement age.
2. Retirement pension objective
The retirement pension objective corresponds to the disability pension objective
for a member with full years of membership at the time of retirement.
If the duration of membership is incomplete, the following reductions apply :
Case 1 Member affiliated on 1st January 2004 or later
If, on retirement, the member has less than 40 years of membership, the retirement
pension objective is reduced by 1/40th for each missing year of membership.
Example
Male member
Pensionable salary : CHF 90 000
Calculation of the disabilty pension objective 80 % of CHF 60 000 CHF 48 000
70 % of CHF 30 000 CHF 21 000
CHF 69 000
Less coordination amount – CHF 27 500
Disability pension objective CHF 41 500
Male member who joined the Pension Fund at age 42
Length of membership at age 65 would be 23 years instead of 40
Retirement pension objective for 40 years of membership CHF 41 500
Reduction for 17 missing years (CHF 41 500 × 17 / 40) – CHF 17 638
Reduced retirement pension objective for 23 years of membership CHF 23 862
Example
15
16 Case 2 Member affiliated between 1st January 1992
and 31st December 2003
If, on retirement, the member has less than 35 years of membership, the retirement
pension objective is reduced by 1/35th for each missing year of membership.
Case 3 Member affiliated before 1st January 1992
If, on retirement, the member has less than 35 years of membership, the
retirement pension objective is reduced as follows :
Between 25 and 35 years of membership : the retirement pension objective
is reduced by 1 % for each missing year of membership;
With less than 25 years of membership : the retirement pension objective is
reduced by 1 % for each missing year between 25 and 35 and by 3.6 % for each
additional year of membership short of 25.
The retirement pension reduction due to missing years of membership (gaps
in pension benefits) may be offset by payment of additional voluntary contributions
into retirement savings account B (p. 8).
•
•
Male member who joined the Pension Fund at age 42
Membership at age 65 would be 23 years instead of 35
Retirement pension objective for 35 years of membership CHF 41 500
Reduction for 12 missing years (CHF 41 500 × 12 / 35) – CHF 14 229
Reduced retirement pension objective for 23 years of membership CHF 27 271
Example
Male member who joined the Fund at age 42
Membership at age 65 would be 23 years instead of 35
The retirement pension objective is reduced as follows :
– for years missing between 25 and 35 (10 × 1 %) 10.0 %
– for years short of 25 (2 × 3.6 %) 7.2 %
Reduction rate for 12 missing years 17.2 %
Retirement pension objective for 35 years of membership CHF 41 500
Reduction for 12 missing years (CHF 41 500 × 17.2 %) – CHF 7 138
Reduced retirement pension objective for 23 years of membership CHF 34 362
Example
Françoise Rolle Head of Expatriation and CommunicationFinding the right balance between family and working life – a daily challenge.
Jacqueline Glauser AdministratorReading allows me to escape.
18 8. Retirement benefits
Normal retirement
Normal retirement age is set at :
65 years for men
64 years for women.
The retirement date is the first day of the month following the member reaching
normal retirement age. This age can be individually modified for members having
worked abroad or benefiting from transitional measures.
At normal retirement age, the active member qualifies for a retirement pension from
the Fund obtained by converting the balance of retirement savings account A at the
effective retirement date, based on the conversion rates on page 19.
Due to the employer credits provided (p. 6), the retirement pension resulting from
the conversion of savings account A is at least the same as the retirement pension
objective (p. 15).
A supplementary retirement pension financed by retirement savings account B is
added to this sum, and that of retirement savings account D is subtracted. These
benefits are calculated using the conversion rates on page 19.
In addition, the member is entitled to the balance of retirement savings account C.
Upon request, this may be converted into a pension using the same conversion rate.
•
•
Male member aged 65
Pension objective reduced for 23 years of membership (see p. 15) CHF 23 862
Accrued retirement savings capital :
Retirement savings account A CHF 397 700
Retirement savings account B CHF 80 000
Retirement savings account D – CHF 30 000
Total retirement savings capital CHF 447 700
Corresponding retirement pension :
Retirement savings account A (CHF 397 700 × 6.00 %) CHF 23 862
Retirement savings account B (CHF 80 000 × 6.00 %) CHF 4 800
Retirement savings account D (CHF 30 000 × 6.00 %) – CHF 1 800
Total retirement pension due from the Fund CHF 26 862
Example
19Early or deferred retirement
Active members may request early retirement from the age of 58 at the earliest.
They may also, with the agreement of their employer, defer retirement until the age
of 68.
As in the case of normal retirement, an active member qualifies for a retirement
pension from the Fund obtained by converting the amount accrued in retirement
savings account A using the following conversion rates :
Conversion rates
Age Men Age Women
58 5.10 % 58 5.35 %
59 5.20 % 59 5.45 %
60 5.30 % 60 5.60 %
61 5.40 % 61 5.75 %
62 5.55 % 62 5.90 %
63 5.70 % 63 6.05 %
64 5.85 % 64 6.20 %
65 6.00 % 65 6.35 %
66 6.15 % 66 6.55 %
67 6.30 % 67 6.75 %
68 6.45 % 68 7.00 %
It should be noted that, due to the employer credits provided, the early retirement or
deferred pension resulting from the conversion of retirement savings account A is at
least the same as the retirement pension objective calculated on the basis of the
effective number of membership years at the time of retirement (see p. 15) and :
reduced by 3 % for each year of anticipation before normal retirement age, or
increased by 3 % by year of deferment compared to normal retirement age
(deferred retirement).
A supplementary retirement pension financed by retirement savings account B is
added to this sum, and the sum of retirement savings account D is subtracted.
These benefits are calculated using the conversion rates above.
In addition, the member is entitled to the balance of retirement savings account C.
Upon request, this may be converted into a pension using the same conversion rate.
A reduction in retirement pension due to early retirement may be offset by payment
of additional voluntary contributions into retirement savings account C (p. 8).
•
•
Members may take
early retirement from
the age of 58, or defer
retirement until the
age of 68 (with their
employer’s agreement).
20
Partial retirement
Active members aged up to 58 years may request payment of a partial retirement
pension, with the agreement of their employer, if their working hours are reduced
by at least 20 %. This form of retirement in stages enables the member to receive
both a salary and a retirement pension.
The member may request payment of a supplementary partial retirement pension
for each subsequent reduction of at least 20 % in remaining working hours.
However, the member must retire in a maximum of three stages, the third being full
retirement.
Male member aged 62
Pension objective reduced for 20 years of membership (CHF 41 500 × 20 / 40) CHF 20 750
Reduction for three years’ early retirement (3 × 3 % = 9 %) – CHF 1 868
Pension objective CHF 18 882
Accrued retirement savings capital :
Retirement savings account A CHF 340 216
Retirement savings account B CHF 70 000
Retirement savings account D – CHF 30 000
Total retirement savings capital CHF 380 216
Corresponding retirement pension :
Retirement savings account A (CHF 340 216 × 5.55 %) CHF 18 882
Retirement savings account B (CHF 70 000 × 5.55 %) CHF 3 885
Retirement savings account D (CHF 30 000 × 5.55 %) – CHF 1 665
Total retirement pension due from the Fund CHF 21 102
Example
Male member aged 62
Employment rate 60 %, retirement rate 40 %
Retirement pension at 100 % (see above) CHF 21 102
Partial retirement pension at 40 % (CHF 21 102 x 40 %) CHF 8 441
In addition to this partial retirement pension, the member also receives a salary for
the remaining employment rate of 60 %.
Example
21Continuation of pension cover
On reduction of their salary, active members aged 58 years or more whose
pensionable salary decreases by at least half may ask to maintain their pension
cover at the level of their previous pensionable salary. Continuation of cover
at this level is allowed until the age of 65 years for men and 64 years for women.
Contributions due (p. 4) on the part of the pensionable salary exceeding the
contribution salary are borne entirely by the member.
Postponing payment of the pension
On retirement, a member may ask for payment of their pension to be postponed
until the age of 68 at the latest. The member will not acquire further years of
membership and their pension will increase by 3 % per year of postponement.
Example
Male member aged 62
Reduction in working hours from 100 % to 60 %
Pensionable salary at 100 % : CHF 90 000
Retirement pension objective at 65 : CHF 23 862
In order to maintain retirement pension objective insurance at a rate of 100 %,
the member must pay the following contributions :
Statutory annual contribution on effective salary at 60 %, or
CHF 54 000 x 6.5 % CHF 3 510
Supplementary annual contribution, or
CHF 36 000 x 13.0 % CHF 4 680
Total annual contribution by member CHF 8 190
In this way, the member maintains his pension of CHF 23 862, calculated on the basis
of his former pensionable salary of CHF 90 000.
The Fonds de Pensions
offers flexible retirement
conditions which enable
members to retire in
stages.
22 Temporary annuity (OASI bridging pension)
In the case of early retirement, the member may request a temporary annuity (OASI
bridging pension) which is paid until OASI retirement age (men : 65 years, women :
64 years).
This temporary annuity consists of an advance made by the Fund and enables the
member to balance out their income both before and after payment of the OASI
pension commences.
How does the temporary annuity (OASI bridging pension) operate
The amount of the temporary annuity may be determined freely, but cannot be
higher than the annual sum of the maximum OASI pension.
The temporary annuity is offset by an immediate lifetime reduction in the retirement
pension and, if applicable, in the relevant survivors’ pensions.
It may be prefinanced by the payment of additional voluntary contributions (p. 8).
If the member receiving a temporary annuity dies, no survivors’ pension is due in
respect of the temporary annuity.
Without temporary annuity
Pensionable salary
Lifelong Nestlé pension
OASI pension
Expected retirement date (e.g. age 62)
Date of OASI retirement
With temporary annuity
Pensionable salary
Lifelong Nestlé pension
OASI pension
Expected retirement date (e.g. age 62)
Date of OASI retirement
Nestlé temporary annuity
23The amount of the lifetime reduction is calculated according to the following factors :
Reduction of the retirement pension as a % of the temporary annuity paid out
Age Men Age Women
58 30.371 % 58 28.231 %
59 27.052 % 59 24.524 %
60 23.469 % 60 20.484 %
61 19.586 % 61 16.067 %
62 15.359 % 62 11.221 %
63 10.731 % 63 5.888 %
64 5.639 % 64 0.000 %
65 0.000 %
Child pensions payable to pensioners
Beneficiaries of a retirement pension from the Fund are entitled to a pension for
each of their children.
The pension is paid until the age of 18 years. If the child is in training or full-time
education, the pension is extended until the end of their studies or apprenticeship,
but until the age of 25 years at the latest.
The amount of the child’s pension, for each child, is equivalent to 15 % of the
retirement pension, but is limited to CHF 12 000 per year.
Example
Male member, retiring at age 62
Retirement pension after reduction due to early retirement
and missing years CHF 21 102
Requested temporary annuity CHF 27 500
Reduction at age 62 : 15.359 %
Pension reduction (CHF 27 500 × 15.359 %) CHF 4 224
Retirement pension from age 62 to 65
(CHF 21 102 – CHF 4 224 + CHF 27 500) CHF 44 378
Retirement pension as from age 65 (CHF 21 102 – CHF 4 224) CHF 16 878
The OASI pension is paid in addition to the Fund’s pension after age 65.
The temporary annuity
or OASI bridging pension
enables the member to
balance out their income
both before and after
payment of the OASI
pension commences.
Sandra Marques Administrator - pensionersBeing a firefighter to help others.
Karin Nairn Head of benefit administration - pensionersTennis allows me to let off steam all year round and stay in shape.
259. Disability benefits
Entitlement to a temporary disability pension
The decision granting a temporary disability pension and fixing the corresponding
degree of disability is taken by the Fund in agreement with the employer. It is based
on the decision of the DI and / or on the basis of medical advice.
The temporary disability pension is paid on a temporary basis until the normal
retirement age. After this date, it is replaced by the retirement pension which may
differ in terms of amount (p. 18).
Amount of the temporary disability pension
The temporary disability pension is equal to the disability pension objective.
However, a comparison should be performed in order to determine the greater
of the three sums below :
In addition, in the case of full disability, the member is furthermore entitled to the
amount accrued on retirement savings account C (p. 12) which is paid out as a lump
sum. On request, the lump sum may be converted into a disability pension, using
the conversion rates on page 26.
(a) (b) (c)
+ +Disability pension objective defined on page 14
Retirement savings account A converted into a pension using the conversion rates on page 19
Retirement pension objective calculated on the basis of years of membership which would have been completed on retire-ment (p. 15)
Balance of retirement savings accounts B – D converted into a pension using the rates on page 26
Balance of retirement savings accounts B – D converted into a pension using the rates on page 26
26
Rates used to calculate the supplementary pension financed by retirement savings accounts B, C and D
Age Men Women Age Men Women
40 8.706% 8.863 %
41 8.577 % 8.732 %
42 8.450 % 8.603 %
18 12.080 % 12.298 % 43 8.325 % 8.476 %
19 11.901 % 12.116 % 44 8.202 % 8.351 %
20 11.725 % 11.937 % 45 8.081 % 8.227 %
21 11.552 % 11.761 % 46 7.962 % 8.106 %
22 11.381 % 11.587 % 47 7.844 % 7.986 %
23 11.213 % 11.416 % 48 7.728 % 7.868 %
24 11.047 % 11.247 % 49 7.614 % 7.751 %
25 10.884 % 11.081 % 50 7.501 % 7.637 %
26 10.723 % 10.917 % 51 7.391 % 7.524 %
27 10.565 % 10.756 % 52 7.281 % 7.413 %
28 10.409 % 10.597 % 53 7.174 % 7.303 %
29 10.255 % 10.440 % 54 7.068 % 7.195 %
30 10.103 % 10.286 % 55 6.963 % 7.089 %
31 9.954 % 10.134 % 56 6.860 % 6.984 %
32 9.807 % 9.984 % 57 6.759 % 6.881 %
33 9.662 % 9.836 % 58 6.659 % 6.779 %
34 9.519 % 9.691 % 59 6.561 % 6.679 %
35 9.378 % 9.548 % 60 6.464 % 6.580 %
36 9.240 % 9.407 % 61 6.368 % 6.483 %
37 9.103 % 9.268 % 62 6.274 % 6.387 %
38 8.969 % 9.131 % 63 6.181 % 6.293 %
39 8.836 % 8.996 % 64 6.090 % 6.200 %
65 6.000 % —
Man becoming disabled at age 58.
a) Disability pension objective calculated according to page 14 CHF 41 500
b) Conversion of retirement savings account A using the conversion
rates on page 19 (CHF 300 000 x 5.10 %) CHF 15 300
Conversion of the balance of accounts B - D using the rates above
(CHF 50 000 x 6.659 %) CHF 3 330
Total (CHF 15 300 + CHF 3 330) CHF 18 630
c) Retirement pension objective calculated according to page 15 CHF 23 862
Conversion of the balance of accounts B – D, as above CHF 3 330
Total (CHF 23 862 + CHF 3 330) CHF 27 192
The total temporary disability pension is equal to the highest of the
three sums above. In this case, it is therefore equal to the disabiliy
pension objective (a). CHF 41 500
Example
27Partial disability
In the case of partial disability, the disability pension is calculated according to the
degree of disability as defined by the Fund. Retirement savings accounts A, B and D
are reduced depending on the percentage of the disability pension provided by the
Fund.
The temporary disability pension is equal to the full disability pension multiplied by
the Fund’s disability rate.
Example
The percentage of the disability pension provided by the Fund amounts to 50 %.
Balance on retirement savings account A prior to disability CHF 300 000
Balance on retirement savings account A after disability
(CHF 300 000 × 50 %) CHF 150 000
The balance of retirement savings account C is not paid in the event of partial
disability. It remains in the Fund and will be paid in the event of full disability,
retirement or death.
Disabled person’s child’s pension
Beneficiaries of a temporary disability pension from the Fund are entitled to a
pension for each of their children.
The pension is payable up to the 18th birthday of the child. Total or partial payment
of the pension is prolonged till the end of the apprenticeship or studies, but not
beyond the age of 25 years.
The disabled person’s child’s pension, for each child, amounts to 15 % of the
disability pension, but is limited to CHF 12 000 per year.
Lump sum option
If the disability occurs after the age of 58, the disability pension beneficiary may
request, before payment of the first pension, the conversion of up to 50 % of
his pension into a one-time lump sum payment.
The temporary
disability pension
is paid until retirement.
The amount of the
retirement pension
may differ.
Martin Wagner Secretary of the Foundation BoardGoing for a walk in the countryside is an excellent way to regain the right balance.
2910. Death benefits
Surviving spouse’s pension
This pension is payable from the month following the death of the active or retired
member.
In the case of the death of an active member, the surviving spouse’s pension
equals 70 % of the insured disability pension.
In the case of the death of a retired member, the surviving spouse’s pension
is calculated based on the current disability pension or the retirement pension.
In principle, it equals :
70 % if the entitlement to a retirement or disability pension began after
1 January 2011
60 % in all other cases.
However, no survivor’s pension is due in respect of any temporary annuity (OASI
bridging pension).
Lump sum option
If at the date of his death, the member aged more than 58, the survivor pension
beneficiary may request, before payment of the first pension, the conversion of
up to 50 % of the pension into a one-time lump sum payment.
Age difference
If the spouse is younger than the member and the age difference exceeds ten years,
the pension is reduced by 2.4 % per year beyond that limit.
Example
14 years of age difference, i.e. four years beyond ten years
Reduction for 14 years of age difference (4 × 2.4 %) 9.6 %
Surviving spouse’s pension CHF 29 050
Reduced surviving spouse’s pension [(100 % – 9.6 %) × CHF 29 050] CHF 26 261
•
•
Example
Disability pension CHF 41 500
Surviving spouse’s pension (70 % of CHF 41 500) CHF 29 050
30 Compensation for age difference reduction
If the surviving spouse’s pension provided by the Fund is reduced because of the
age difference between the spouses, an active member may apply to compensate
this reduction by means of a reduction of his own retirement and disability pensions.
The reduction of the disability or retirement pension is calculated as follows :
This option must be exercised on joining the Fund or later when the member
marries.
Age difference Reduction Age difference Reduction
(in years) rate (in years) rate
10 0.0 % 18 3.4 %
11 0.4 % 19 3.8 %
12 0.9 % 20 4.3 %
13 1.3 % 21 4.7 %
14 1.7 % 22 5.1 %
15 2.1 % 23 5.6 %
16 2.6 % 24 6.0 %
17 3.0 % 25 6.4 %
Reverting to the figures of the previous example
Surviving spouse’s pension CHF 29 050
Reduced surviving spouse’s pension CHF 26 261
Reduction rate of the retirement pension for 14 years’ age difference 1.7 %
Retirement pension (not reduced) CHF 41 500
Reduced retirement pension [CHF 41 500 × (100 % – 1.7 %)] CHF 40 795
Compensated surviving spouse’s pension (CHF 40 795 × 70 %) CHF 28 557
Example
31Marriage after retirement
If the member marries after retirement, the insured surviving spouse’s pension
is reduced by 20 % for each year that has elapsed since the member’s normal
retirement age. This reduction adds to any reduction due to the age difference
between the spouses.
The minimum surviving spouse’s pension due pursuant to the provisions of the LOB
is, however, guaranteed.
Age on marriage Rate of reduction of the surviving spouse’s Men Women pension
65 64 no reduction
66 65 20 %
67 66 40 %
68 67 60 %
69 68 80 %
70 69 100 %
Example
If, at the age of 68 (i.e. three years after his normal retirement age of 65), a retired member
marries a woman aged 60, the insured surviving spouse’s pension is reduced by 60 %.
Remarriage of the surviving spouse
In the event that the surviving spouse remarries, the pension entitlement is
cancelled and the beneficiary receives a one-time lump sum payment equal
to three annual pensions.
For an active member,
the surviving spouse’s
pension amounts to
70 % of the insured
disability pension.
32 Orphan’s pension
Each child of a deceased member is entitled to an orphan’s pension.
The orphan’s pension is payable up to the 18th birthday of the child. Total or partial
payment of the orphan’s pension is prolonged till the end of the apprenticeship or
studies, but not beyond the age of 25 years. In the case of an extension, the child
may request that their pension is paid into their own account.
In the event of the death of an active member, the orphan’s pension is equal to
15 % of the insured disability pension.
In the event of the death of a retired member, the orphan’s pension is equal to 15 %
of the current retirement pension.
If the child has lost both parents, the orphan’s pension is doubled.
Death lump sum
Active members who are not covered for a surviving spouse’s pension in the
event of death are entitled to a death lump sum equal to :
The death capital is paid out to the following beneficiaries by order of priority :
persons designated previously by the member in writing, if the deceased member
was providing financial support at the time of death, in their absence
the direct descendants of the member, in their absence
the parents of the member, in their absence
the brothers and sisters of the deceased member.
•
•
•
•
A widow with a surviving spouse’s pension of CHF 29 050 (i.e. 70 % of CHF 41 500) with
two dependent children receives, in addition to her pension, 2 x 15 % of CHF 41 500, giving
a total of CHF 12 450 by way of orphan’s pensions.
Example
50 % of the amount accrued on retirement savings account A
+ 100 % of the amount accrued on retirement savings accounts B and C
– 100 % of the amount on account D
– 50 % of the present value of any orphan’s pensions x
= Death capital excluding surviving spouse’s pension
33
Unmarried members may
designate the benefici-
ary of their death capital
in writing, provided that
they are providing for his
or her maintenance.
Active members who are entitled to a surviving spouse’s pension following a
death are insured for death capital amounting to :
The death benefit is paid to the surviving spouse.
At the request of the beneficiary, this capital may be converted into a pension by
applying the current conversion rates.
One-time allowance
In the case of the death of an active or retired member, the Fund pays a one-time
allowance to cover initial costs, equal to CHF 5 000.
100 % of additionnal contributions paid by the member, with interest
– 100 % on the amount on account D x
= Death capital with surviving spouse’s pension
Noëlle Ulmann Head of benefit administrationIt’s not just pleasant to “cycle“ at work, but also in the countryside.
Anne Le Roy AdministratorHurtling down snow-covered slopes as a family – that’s real happiness…
3511. Lump sum option
On normal or early retirement, the member receiving a retirement pension may
request the conversion of up to 50 % of their pension into a one-time lump sum
payment, after deduction of benefits that have already been paid out as a lump
sum, in particular early withdrawals (account D), and of the present value of an
eventual temporary annuity (OASI bridging pension) (p. 22).
Furthermore, in principle, the beneficiary is entitled to the total amount accrued
on retirement savings account C. However, it should be noted that for additional
contributions the tax deductibility may no longer apply, if withdrawn in form of a
lump sum within three years after paying in. In this case the conversion into a
pension should be preferred, using the conversion rates mentioned on p. 19.
The option of drawing part of the pension as a lump sum is also subject to the
following conditions :
The spouse must give written approval, accompanied by a copy of a form of
identity bearing the spouse’s signature. The Fund is entitled to request a certified
signature.
The request must be made irrevocably in writing at least 3 months prior to the
date of effective retirement.
The conversion of part of the pension into a lump sum will, of course, incur a corres-
ponding reduction of the retirement pension and of the relevant survivors’ pensions.
Example
Male member married, retiring at age 65
Retirement pension CHF 41 500
Conversion of 20 % of the pension into a lump sum
(CHF 41 500 × 20 % / 6.00 %) CHF 138 333
Reduced retirement pension : 80 % of CHF 41 500 CHF 33 200
Reduced surviving spouse’s pension : 70 % of CHF 33 200 CHF 23 240
•
•
36 12. Termination of employment
Transfer to other Nestlé companies
If the members leave their job to join another company within the Nestlé Group,
they are entitled to the total amount of accrued retirement savings on the date they
transfer. This capital essentially remains within the Fund and continues to bear
interest. More on page 42.
Vested benefits in the case of resignation or redundancy
The members leaving their job :
before having the minimal age for early retirement (p. 19),
with no retirement or disability benefits due from the Fund, and
without joining another company within the Nestlé Group
lose their status as member and are entitled to a vested benefit equal to the total
amount of accrued retirement savings on the date they leave (p. 12).
Continuation of pension cover
The vested benefit must be used for occupational pension purposes (old age,
disability and death benefits) and must be rolled over :
to their new pension fund, if this is not possible
to a blocked vested account with a bank, or
to a vested policy with an insurance company.
If no instructions are received from the member within six months, the Fund will
transfer the vested benefit to the LOB Substitute Pension Plan.
Member having reached the miminal early retirement age
Members aged over 58 years, to whom no disability benefit is due from the Fund
and who do not join another company of the Group, can ask for the payment of
a vested benefit only if it is transferred to the pension institution of a new employer.
If it is not the case, the members receive an early retirement benefit from the Fund
(p. 19).
•
•
•
•
•
•
37Payment in cash
If the member leaves the Group, the vested benefits may be paid out in cash
depending on the future country of residence and subject to certain conditions :
Country of residence Conditions Portion of the vested benefit that may be paid out in cashs
Switzerland
The member becomes self-employed and is no longer subject to mandatory occupational pension provisions
Total vested benefits
EU Member States, Iceland and Norway
The member is subject to mandatory insurance for old age, disability or death benefit
Difference between the vested benefits and the LOB retirement savings (extramandatory portion)
LiechtensteinThe member becomes self-employed
Difference between the vested benefits and the LOB retirement savings (extramandatory portion)
Other countries No conditions Total vested benefits
The member is not subject to mandatory insurance for old age, disability or death benefit
Total vested benefits
38
The LOB retirement savings remain subject of LOB regulations (p. 37) and will e.g.
be transferred to a blocked vested benefits account with a bank in Switzerland.
The member will be able to access these funds from age 60 (men) or 59 (women).
If the vested benefits is less than the annual total of retirement savings contributions
paid by the member, the total vested benefits may be paid out in cash.
In all cases when payment is made in cash, the departing members, if married,
must secure the written agreement of their spouse and provide a copy of an identity
document bearing the spouse’s signature. The Fund is entitled to request a certified
signature.
In the case of permanent departure from Switzerland, the member must present
an official confirmation by the authorities (“contrôle des habitants”) to this effect;
furthermore, withholding tax will be levied. If a member leaves for an EU Member
State, or for Iceland or Norway, the member may be asked to submit other additional
documents.
In the event that a member becomes self-employed, the person must present a copy
of the certificate confirming the registration as a self-employed person issued by the
OASI administration office (“caisse de compensation AVS”).
The amount of vested benefits will be remitted once the departing member has
submitted the form entitled “Request for the transfer of vested benefits”, but at the
earliest on the last day of employment in accordance with the employment contract.
Male member leaving the Nestlé Group at age 52 to go, live and work in Italy, and
continuing to be subject to mandatory insurance.
Total retirement savings capital CHF 350 000
Of which LOB retirement savings CHF 100 000
Difference between vested benefits and LOB retirement savings
(extra-mandatory portion) CHF 250 000
Only CHF 250 000 may be paid out in cash. The LOB retirement savings of CHF 100 000
remain subject of LOB regulations and will e.g. be transferred to a blocked vested benefit
account with a bank in Switzerland.
Example
Gabrielle Feldner Administrator - active membersMountain sports allow me to recharge my batteries and enjoy myself in a stunning setting.
Elvira Isenring Administrator - active membersMountaineering enables me to discover new horizons.
Vincent Giroud Head of benefit administration - active membersFootball, a universal sport that I’m passionate about.
40 13. Home ownership
Pledging
Pledging consists of using part or all of a member’s accrued retirement savings
capital or the corresponding pension benefits as collateral guarantee for a loan
granted by a pledge creditor to finance the acquisition of property as the member’s
main place of residence.
The pledge may involve :
vested benefits : The person insured pledges their current or, if necessary, future
vested benefits. As a general rule, a fixed amount is pledged.
the entitlement to pension benefits (old age, disability and survivor’s pensions) :
In this case, no amount is pledged, but only the entitlement to pension benefits.
Early withdrawals
An active member may withdraw in cash all or part of the accrued retirement
savings capital in order to finance the purchase or construction of a property as
the member’s main place of residence or to amortise existing mortgages on such
property.
The amount withdrawn is registered in account D (see p. 12).
Members may benefit from encouragement of home ownership on the condition
that it is used to acquire or build their main residence or to pay off mortgage loans
on such property. Financing of a second residence or holiday home is not permitted.
Voluntary repayment is permitted at the latest :
until the age of 62 for men and 61 for women
before another pension becomes payable (death, disability)
before cash payment of vested benefits.
The maximum amount authorised for the acquisition of property corresponds :
up to the age of 50, to the entire vested benefits
for members aged over 50, either to the amount of vested benefits built up to the
age of 50, or to half of the amount of the vested benefits built up at the time of
payment, whichever is the higher.
More information can be found in the regulations dealing specifically with this topic.
These documents may be requested from Fund Administration or can be accessed
on our intranet site.
•
•
•
•
•
•
•
4114. Divorce
On the marriage of an active member, the Fund determines the vested benefits
accrued at that date and indicates this amount on the back of the pension
statement.
In the event of divorce, a part of the vested benefits is, in principle, allocated to
the ex-spouse on the basis of a court decision. This benefit amount must be used
solely for future pension purposes. The amount is registered in retirement savings
account D (see p. 12). On the other hand, if a benefit amount is received from the
ex-spouse’s pension fund, this benefit is credited to retirement savings account B.
On request, the Fund will issue an interim statement of benefits accrued in order
to establish the vested benefits accrued during the marriage.
The divorced spouse’s entitlement to a survivor’s pension is cancelled, subject to
legal regulations regarding the minimum rights of divorced women in accordance
with the LOB.
15. Unpaid leave
During unpaid leave, members remain affiliated to the Fund.
During this period :
no contributions are due from either the member or the employer.
disability (p. 25) and death benefits (p. 29) remain insured at the expense of
the Fund and at the same level as that calculated at the beginning of the period
of leave.
the retirement savings capital accumulated continues to bear interest (p. 12).
the member does not acquire years of membership.
If, following unpaid leave, the member has a pension gap, it is possible to make
additional contributions (p. 8).
•
•
•
•
Withdrawals to buy
residential property
will result in a reduction
in retirement benefits.
42 16. Transfers to other Nestlé companies outside Switzerland
Three options
For a transfer abroad to other Nestlé companies, one of the three following options
is applicable :
Home Based Expatriate (HBE)
As a “Home Based Expatriate“, the transferred employee remains, in principle,
affiliated to the OASI / DI and to the Nestlé Pension Fund in Switzerland.
Centre Based Expatriate (CBE)
As a “Centre Based Expatriate”, the transferred employee is affiliated to the
“Expatriate Pension Scheme”, which provides a level of benefits similar to those
obtained by Swiss employees from the Nestlé Pension Fund in Switzerland and
from the OASI / DI. Further information can be found in the booklet “The
Expatriate Pension Scheme for CBEs“.
Transfer with another status
Members who cease employment in order to join another company of the Nestlé
Group without HBE or CBE status are affiliated to local pension funds and social
security in their host country.
Retirement savings capital of members transferred abroad
In all three cases mentioned above, the retirement savings capital (accounts A, B,
C and D) remains in the Nestlé Pension Fund in Switzerland and continues to bear
interest at the rates applicable to the active members of the Fund.
In the case of a situation giving rise to a benefit entitlement (e.g. death, disability,
but also termination of employment with the Nestlé Group), the retirement savings
capital is either transferred to the local pension fund granting the benefit or used
for benefits according to the regulations of the Pension Fund in Switzerland. In both
cases, credits on accounts B, C and D are used to finance additional benefits.
Early retirement in connection with an expatriate career
Active members who have acquired “age credits” during their career as an
expatriate benefit from a reduction in retirement age (howeber, not lower than
58 years). They will receive the same pension (at this reduced age) as they would
have done at normal retirement age. Provisions regarding early retirement will apply
in such cases with respect to this reduced retirement age.
Where applicable, an adequate compensation for the missing OASI pension will be
provided.
•
•
•
4317. Adjustment of pensions
The current pensions can be adjusted to the prices evolution according to the
financial possibilities of the Fund. The Foundation Board determines every year if,
and in which measure, the pensions are adjusted.
18. Overinsurance
The Fund reduces the benefits payable to the beneficiaries of retirement, survivors’
or disability pensions where these exceed the last contribution salary (increased by
any family allowances) when added to the other income taken into consideration.
The income to be taken into account includes :
OASI/disability benefits,
military insurance benefits,
mandatory accident insurance benefits,
third-party liability insurance benefits,
benefits from vested benefit foundations and the Substitute Pension Plan,
benefits from foreign institutions similar to the Fund,
benefits from foreign social insurance schemes,
any salary being paid by the employer or benefits substituting for such,
income that a fully or partially disabled person receives from gainful employment
or that he/she could make from any gainful activity that could reasonably be
required of him/her.
In order to carry out comparisons with the last contribution salary, benefits payable
as lump sums are converted into pensions for calculation purposes.
•
•
•
•
•
•
•
•
•
As long as
the member
remains within
the Nestlé Group,
the retirement savings
remain in the Fund.
Pension Statement at 28.02.2011MrExampleNestlé Suisse SA, Vevey
Personal / Confidential
48'1447'224
Disability benefitsTemporary disability pensionDisabled person's child's pension, per child
7'176
33'6967'224
0
Retirement benefitsRetirement pension
Death benefits before retirementSurviving spouse's pensionOrphan's pension, per childDeath lump sum
Child's pension payable to pensioners, per child
Pensionable salary 99'500
Current activity rate
Insured benefits (in CHF)
Financing (in CHF)
49841
5'976492
5'976492
539 6'468 18'420
Retirement savings contributionRisk premium for death and disability
Total
Memberper month
Memberper year
Employerper year
Vested benefits at 28.02.2011 527'415(including LOB retirement savings of CHF 190'165)
35'160
Relevant entry date 01.09.198531.08.2019
Employer Nestlé Suisse SA, Vevey
Member number 99999
47'868
Personal data
Age 65Age 58
100%Average activity rate 100%
Social security number 756.1565.3601.50
Membership years at retirement 34 yrs
CHF
11'952Employer credit
6.0%0.5%
5'000One-time funeral allowance
The benefits mentioned above do not take into account the retirement savings account C. The benefits accrued on theaccount C are usually paid out as a lump sum but can also be converted into a pension.
Date of birth 31.08.1954
MarriedMarital status Supposed retirement date
Surviving spouse's pension 24'612 33'696
Balance at 01.01.2011MovementsInterests 2.00%
Balance at 28.02.2011
448'6703'984
454'108
53'1020
53'274
69'972 -50'0030
70'198
0
-50'165
1'454 172 226 -162
Regulatorycontributions
Vested benefitsand pension gaps
Early retirementpre-financing
Earlywithdrawals
A B C D
Participation in surplus 0 0 0 0
Retirement savings accounts (in CHF)
Member and employer retirement savings contributions are credited to retirement savings account A.
In some cases, active members aged 55 and above benefit from an employer credit made annually to their retirement savings account A. This credit allows the pension objective to be reached on retirement age.
New ! In principle, the temporary disability pension corresponds to the disability pension objective. It is paid temporarily until normal retirement age, after which it is replaced by the retirement pension.
The interest rate in 2011 is 2 %.
The LOB retirement asset is the minimum amount calculated in accordance with the Swiss Federal Law on Occupational Benefit Plans. If an active member leaves Switzerland for good to live in a European Union country, Iceland or Norway, they may not have their LOB retirement assets paid out to them. Only the extra-mandatory portion (difference between the vested benefits and the LOB retirement assets) may be paid out in cash.
The rate of members’ participation in the surplus is fixed by the Foundation Board of the Fund depending on the surpluses accumulated by the Fund.
Vested benefits from previous pension funds and additional contributions made to offset gaps in pension benefits are credited to retirement savings account B.
The retirement savings contribution and the risk premium for death and disability are fixed as a percentage of the annual contribution salary and are deducted from 12 monthly salary payments. The risk premium is a pure insurance contribution which, as its name indicates, covers death and disability benefits for active members. It is not credited to the retirement savings account and is not included in the calculation of vested benefits.
The average activity rate is calculated on the basis of past activity rates and the current activity rate projected until retirement. This rate is factored into the pension objective calculation.
The benefits arising from retirement savings account C are not included in the benefits mentioned above. They are applied in the form of a lump-sum payment or an additional pension.
A one-time funeral allowance is always paid in the case of the death of a member, in addition to the other benefits due.
The amount of the death benefit varies depending on the marital status of the member. If the beneficiary of the death benefit is not the member’s surviving spouse, the manner in which this benefit is allocated may be changed in favour of a financially dependent person subject to prior written notification to the Fund.
New ! In the case of the death of an active member, the surviving spouse’s pension equals 70 % of the insured disability pension. The pension is reduced if the spouse is more than 10 years younger than the member.
The child’s pension payable to pensioners is equivalent to 15 % of the retirement or disability pension, but is limited to CHF 12 000 per year per child.
New ! The retirement pension at minimum voluntary early retirement age allows you to see what you will be entitled to in advance. Of course, the Fund administration will be happy to provide you with any further information you may require.
The retirement savings capital, obtained by adding accounts A, B, C and D together, constitutes the vested benefits in case of termination of employment.
Retirement savings account D details any possible withdrawals for the purposes of home ownership or following a divorce. For transparency purposes, this account shows the evolution of the withdrawals on a stand-alone basis, without any impact on the other retirement savings accounts.
Additional contributions made to prefinance early retirement are credited to retirement savings account C.
The number of years of membership is taken into consideration when calculating the retirement pension objective. This figure represents the time since the qualifying date until the supposed retirement date.
The supposed retirement date is the first day of the month following your 65th (men) or 64th (women) birthday (subject to the deduction of a possible age credit).
The retirement benefits listed on this statement reflect the largest of the following two amounts :
- the calculated retirement pension objective based on your current salary and adjusted based on accounts B and D.
- the calculated projection of 1.5 % of your retirement savings capital (excluding account C) until your forecasted retirement date.
Your projected retirement savings capital is calculated based on your current salary and a provisional interest rate of 1.5 % until retirement (hypothesis). This figure is then translated into a pension using a conversion rate. If the conversion rate has to be reduced in the future or if the rate of 1.5 % cannot be credited, the benefits indicated may be reduced.
0 = Corresponding page number in the quick reference guide
14
4
12
18
36
25
6
12
12
12
2
18
14
33
12
32
29
8
40
36
19
23
Please let us know if the marital status indicated is incorrect. The relevant entry date is generally the same as the date on which the member joined the Group. However, the two dates may not match in certain instances.
50'000332'011107'683138'176
Early withdrawal for home ownership : 31.12.2010Vested benefits at the age of 50 : 31.12.2004First vested benefits communicated : 01.01.1995Vested benefits at the date of marriage : 31.12.1996
Complementary indications (in CHF)
0Maximum amount available for the home ownership
This document replaces all previous pension statements.In case of difference between this pension statement and the Pension Fund regulation, the latter is applicable.
The retirement savings capital is projected until retirement age with an interest of 1.5%. This interest is by no means guaranteed.
Vevey, 28.01.2011
The child's pension is paid up to the age of 18, respectively 25 in case of continued education.The retirement savings accounts take into account the years of contributory membership in Switzerland only.
+41 21 924 26 38Fonds de Pensions Nestlé Avenue Nestlé 55 CH-1800 Vevey [email protected]
194'649Additional contributions for pre-financing of early retirement at 59 years, 6 mths50'165Additional contributions to make up for the gaps in pension benefits (subject to legal provisions)
Additional voluntary contributions paid in, without interest 57'000
/ vgiroudIssued by Vincent Giroud
General information
Interests granted on retirement savings accounts (A, B, C and D) Minimum Participation interest rate in surplus Total _ ______ ______ ______ ______ _______ ______ ______ ______ ______ _______ ______ ______ ______ ______ _______ ______ ______ ______ ______ _______ ______ ______ ______ ______ ______
2006 2.50% 1.50% 4.00% 2007 2.50% 8.50% 11.00% 2008 2.75% 0.00% 2.75% 2009-2010 2.00% 0.00% 2.00% 2011 2.00% determined at end 2011
Additional contributions The active members may pay additional savings contributions in order to compensate in full or in part for benefit reductions due to: - missing years of membership - a change in the activity rate - planned voluntary early retirement. A calculation of the maximum permitted amount can be obtained by contacting the Fund Administration. Furthermore the implementing regulations appl icable to voluntary contributions are available on our intranet site.
Old age and survivors’ insurance/disability insurance (OASI/DI) The benefits granted by the Fund may be supplemented by the benefits under OASI/DI. Moreover, a reduction of the OASI/DI following an expatriation within the Nestlé Group is, in principle, compensated by the Fund.
Indicative annual OASI/DI benefits on the basis of 44 years of contributions (in CHF):
Annual average OASI/DI pension OASI/DI pension OASI/DI pension OASI/DI child salary for single person for married couple for widow(er) pension _ ______ ______ ______ ______ _______ ______ ______ ______ ______ _______ ______ ______ ______ ______ _______ ______ ______ ______ ______ _______ ______ ______ ______ ______ _______ ______ ______ ______ ______ _______
up to 13'920 13'920 20'880 11'136 5'568 = minimum pension 27'840 17'544 26'316 14'028 7'020 55'680 23'388 35'082 18'708 9'360 As from 83'520 27'840 41'760 22'272 11'136 = maximum pension
Individual calculations can be obtained by contacting the OASI/DI administration offices.
Information Further information can also be obtained by contacting our Fund Administration or by consulting our intranet website: http://intranet.nestle.com/centre/pensionsE on which all documents relating to the Fund are posted, namely the Quick Reference Guide. Questions can be mai led to [email protected].
The amount available for withdrawal for home ownership is generally equivalent to the vested benefits listed on the reverse of this statement. The amount differs however for members aged over 50, for those having made payments of voluntary contributions and for those who have already made a withdrawal. Please consult the implementing regulations for more details.
You can find general information on the Fund and the Swiss pension system on the reverse of the pension statement at the bottom.
Any early withdrawals for home ownership or following a divorce can be found on your pension statement. This same amount including interest is listed on the reverse of the statement under retirement savings account D “Early withdrawals”.
When an active member gets married, the Fund will determine the vested benefits accrued to that date. This figure is included on your pension statement.
Maximum amount to be paid to prefinance early retirement at the age stated.
0 = Corresponding page number in the quick reference guide
8
8
41
40
40
Maximum amount to be paid to fully offset gaps in pension benefits.