Person schneidet grüne Trauben ab

How our members share in our success

We are a cooperative. That means every Swiss franc of profit we make stays within the organisation, meaning everyone benefits – active members and pensioners alike.

Our role is to produce outstanding results from your occupational benefits insurance. In other words: If we achieve our objectives, our members will benefit. The simplest way we do that is through interest on the retirement savings capital of active insureds. The minimum interest rate is set by the Federal Council, but we aim to offer more. That’s why we enable active  insureds to benefit from Asga’s success through a predefined mechanism. How does it work? We start by looking at the funded status: For example, if at the end of November the funded status was between 100% and 115% (including BVG minimum interest rate), the Board of Directors decides on any additional interest on the retirement savings capital of active members. If the funded status was between 115% and 116%, Asga pays an interest rate of 2.75%. The higher the funded status, the greater the participation of active members in our profit, which we generate chiefly through developments on the financial markets. If, for example, the funded status is 120%, an interest rate of 4% is applied. This mechanism can be abandoned by a resolution of the Board of Directors , for example in the event of a change in the structure of the insureds portfolio, or circumstances on the financial markets. Using this clearly formulated model, we also aim to correct some of the systemic unequal treatment between pensioners and active insureds (i.e. excessive interest rate on retirement savings capital of pensioners and associated potential transfer payments, i.e. conversion losses).

Pensioners benefit too

If the occupational benefits institution is performing well, we ensure that our pensioners benefit as well as our active members . The additional funds are distributed to pensioners  in the form of a 13th monthly pension payment. This pension is paid as soon as the interest rate on the retirement savings capital of active members exceeds the given interest rate implied by the conversion rate (CR). The additional pension is paid on an individual basis, depending on the respective CR for the pensioner at retirement as well as the funded status (example: if the funded status is greater than 121%, a 13th monthly pension payment is granted). The lower the CR and higher the funded status, the more likely it is that pensioners will enjoy a 13th monthly pension payment. Thus a higher funded status should benefit not only active members but also pensioners.