Nestlé pension benefits
Nestlé pension benefits
The Fonds de Pensions Nestlé is a foundation that serves to provide benefits to its members and their survivors in the event of retirement, disability and death. The foundation is based in Vevey, Switzerland.
Its insured members comprise the employees of the Nestlé companies in Switzerland. Its membership consists of round 8’900 active insured members and over 5’900 pension beneficiaries. Its total assets amount to CHF 7.8 billion.
The Fonds de Pensions Nestlé is a fund financed by both the active insured members and their employers which are represented in the board of trustees. The benefits exceed the minimum benefits prescribed by the LOB (Federal law on occupational retirement, survivors and disability benefits).
The Fonds de Pensions Nestlé independently covers retirement, death and disability risks.
Since mid-2013, the Nestlé occupational pension scheme has been organised according to the defined contribution principle.
The administration team consists of 16 staff members.
Total of available assets
CHF 7’675.5 mio
CHF 6’942.2 mio
CHF 6’712.0 mio
CHF 6’559.2 mio
– Pension reserve for pensioners
CHF 4’011.8 mio
CHF 3’971.8 mio
– Pension reserve for active members
CHF 2’436.6 mio
CHF 2’522.3 mio
– Technical provisions
CHF 263.6 mio
CHF 65.1 mio
Downward risk provision
CHF 963.5 mio
CHF 383.0 mio
– Real estate
– Alternative investments
Interest payments on retirement savings capital
Technical interest rate
– Active members
Evolution funding ratio
In the light of increasing life expectancy and the instability in the financial markets the Fonds de Pensions Nestlé is comitted to provide attractive pension benefits for its employees. The development of the Fund is closely involved with the business itself since its very foundation.
Modification of technical interest rate as well as biometrical basis and in consequence lowering of conversion rates.
Creation and launch of the fund's website. The administration team consists of around 15 staff members on behalf of over 11'500 active members and 5'500 pensioniers of the Fund.
Modernisation of the distribution of pension statements and other documents via online access on a personal and secured intranet page.
In July, change of pension scheme in a definied contribution system. This new saving plan is for all new employees and those insured members born after 1st January 1959. The level of retirement, death and disability benefits is equivalent to the old pension scheme.
Change of biometrical basis and in consequence lowering of conversion rates.
60 years of Fonds de Pensions Nestlé.
The pension liabilites of the “Fonds de Pensions Complémentaire Nestlé” were taken over by the Fonds de Pensions Nestlé.
Adaptation vesting scale over 40 years of membership
Change of name: the two Fonds de Pensions Nestlé I and II were aggregated under the name “Fonds de Pensions Nestlé”. The “Fonds de Prévoyance (Fondation Louis Dapples)” became the “Fonds de Pensions Complémentaire Nestlé”.
Introduction of the Federal Law on vested benefits and encouragement of homeownership
40 years after the creation of The Fonds de Pensions Nestlé, the LOB (Law on occupational pension schemes benefits) becames mandatory. Electronic data processing was introduced and the “PEPE” program was used to manage the pension fund.
Raise of retirement age for women at age 62
Modification of the retirement pension objective
As a result of restructuring, the two institutions were brought together as the "Fonds de pensions Nestlé", while the former name "Fondation Edouard Muller" also remained current in remember of CEO Edouard Muller. The pension funds for the Nestlé manual and clerical workers were merged with the MAGGI pension fund under the new name “Fonds de Pensions Nestlé I”. The “Fonds de Pensions Nestlé II” becomes now a real estate fund.
The Tschumi building (Bergère A) was opened and became the head office for the pension fund. Federal disability insurance (DI) was introduced.
Nestlé reorganized the pension fund system for its staff. Two foundations were created which to this day provide the basis for the jointly-administered Nestlé pension funds in Switzerland: the “Fonds de Pensions Suisse des Employés Nestlé” and the “Fonds de Pensions Suisse des Ouvriers Nestlé”, for clerical and manual workers respectively. In memory of the Chairman of the Board of Directors who had died that year, both of the new funds were also called “Fondation Edouard Muller”. Old-age and Survivors’ Insurance (OASI) was introduced.
The “Compte de Retraites” (pensions account) was converted into a Foundation named “Fonds pour institutions en faveur du personnel de la Nestlé & Anglo-Swiss Cond. Milk Co. Cham & Vevey” (Fund for institutions in favour of the staff of Nestlé & Anglo-Swiss Cond. Milk Co. Cham & Vevey). This foundation paid the pensions of retired Nestlé staff (in 1921, 115 former manual and clerical workers). From its reserves, Nestlé transferred CHF 2.5 Mio into the foundation’s account.
The Swiss federal law on sickness and accident insurance came into force, followed in 1918 by the formation of the national accident insurance fund (CNA/SUVA). Nestlé had been paying premiums for its staff into a manual workers sickness insurance fund since 1875, and paying insurance benefits from 1880 onwards.
A pension fund was created for clerical and manual workers of the two merged companies, along with a retirement savings account specific to each organization.