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.

 

Key figures

31.12.2019
31.12.2018
Funding ratio
114.4%
105.8%
Total of available assets
CHF 7’675.5 mio
CHF 6’942.2 mio
Liabilities
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
Investments performance
14.0%
-4.0%
Assets allocation
  – Cash
0.9 %
2.0%
  – Equities
29.3%
32.6%
  – Bonds
41.5%
36.5%
  – Real estate
23.2%
22.8%
  – Alternative investments
5.1%
6.0%
Interest payments on retirement savings capital
2.75%
1.0%
Technical interest rate
2.25%
2.25%
Mortality tabes
LPP 2015
LPP 2015
Total headcount
14’734
15’758
  – Active members
8’847
9’967
  – Pensioners
5’887
5’791

 

Evolution funding ratio

 

 

History

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.

Chronology

2018
Modification of technical interest rate as well as biometrical basis and in consequence lowering of conversion rates.
2016
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.
2015
Modernisation of the distribution of pension statements and other documents via online access on a personal and secured intranet page.
2013
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.  
2011
Change of biometrical basis and in consequence lowering of conversion rates.
2008
60 years of Fonds de Pensions Nestlé.
2007
The pension liabilites of the “Fonds de Pensions Complémentaire Nestlé” were taken over by the Fonds de Pensions Nestlé.
2003
Adaptation vesting scale over 40 years of membership
2000
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”.
1995
Introduction of the  Federal Law on vested benefits and encouragement of homeownership
1985
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.
1981
Raise of retirement age for women at age 62
1975
Modification of the retirement pension objective
1972
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.
1960
The Tschumi building (Bergère A)  was opened and became the head office for the pension fund. Federal disability insurance (DI) was introduced.
1948
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.
1919
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.
1911
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.
1910
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.