Nestlé pension benefits in Switzerland

The Fonds de Pensions Nestlé is a foundation based in Vevey (Switzerland) whose purpose is to provide retirement, disability or death benefits to employees of Nestlé companies in Switzerland or their survivors. Its membership currently consists of round 8’800 active insured members and over 5’800 pension beneficiaries.

Since 2013, the Nestlé occupational pension scheme has been organized according to the defined contribution principle. The benefits offered by the Fonds de Pensions Nestlé to its insured members exceed the minimum benefits provided by the Swiss Federal Law on Occupational Retirement, Survivors’ and Disability Pension Plans (LOB). The Fonds de Pensions Nestlé independently covers the risks of old age, death and disability.

The Fonds de Pensions Nestlé team is composed of 15 employees.

Key figures

31.12.2021 31.12.2022
Funding ratio 127.4% 108.3%
Total of available assets CHF 8’730.2 mio CHF 7’383.6 mio
Liabilities CHF 6’853.9 mio CHF 6’818.1 mio
  – Pension reserve for pensioners CHF 4’046.2 mio CHF 3’989.4 mio
  – Pension reserve for active members CHF 2’600.7 mio CHF 2’605.2 mio
  – Technical provisions CHF 207.0 mio CHF 223.5 mio
Downward risk provision CHF 1’370.8 mio  CHF 565.5 mio
Investments performance 10.2% -13.6%
Assets allocation
  – Cash  1.4% 1.5%
  – Equities  26.9% 25.3%
  – Bonds 39.8% 39.7%
  – Real estate 23.2% 22.6%
  – Alternative investments 8.7% 10.5%
Interest payments on retirement savings capital 4.0% 1.0%
Technical interest rate 2.0% 2.0%
Mortality tables LPP 2020 LPP 2020
Total headcount 14’654 14’320
  – Active members 8’715 8’404
  – Pensioners 5’939 5’939


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 the technical interest rate and the mortality tables as at 31 December, with no impact on insured benefits or conversion rates.
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.