Introduction of 1e savings plans and improvement of death and disability benefits in January 2020

The Pension Fund of Credit Suisse Group (Switzerland) will introduce 1e retirement capital savings in January 2020. This savings plan gives insured with a gross salary subject to AHV contributions of more than CHF 127,980 the opportunity to codetermine the investment strategy that is used to invest their pension assets. At the same time, death and disability benefits will be improved for all insured.

Death and disability benefits
As of January 2020, the disability pension for all insured will be increased from 65% of the pensionable base salary to 70% of the pensionable base salary. This also results in higher death and disability benefits in the event of death or in the case of a disabled person's child's pension.

1e savings plan
The current pension model consists of two pension pots: Savings contributions on a gross salary subject to AHV contributions of up to CHF 127,980 flow into the pension capital savings pot; the assets accumulated there form the basis for the retirement pension. Contributions on salary components above CHF 127,980 are credited to the retirement capital savings pot; these assets are paid out as a lump sum on retirement. The assets in both pension pots are invested in a common strategy and bear interest.
In the new 1e retirement capital savings plan to be introduced in January 2020, insured can choose to invest the assets they have accumulated in their retirement capital savings pot in one of six investment strategies. This gives insured the opportunity to invest the corresponding pension capital in line with their individual risk tolerance and risk ability. They therefore assume more personal responsibility: They participate in the performance of the assets, but they also bear the associated investment risk.

 
The new 1e retirement capital savings at a glance

• Only insured with salary components above CHF 127,980 (salary subject to AHV contributions) are affected
• Retirement benefits are paid out exclusively as a lump sum (no retirement pension).
• Individual choice of six investment strategies with an attractive cost structure: Different investment vehicles are offered with equity components ranging from 0% to 75% in line with the risk profile and the chosen strategy.
• Investment opportunities and risks are borne by the insured: When they leave the Pension Fund or retire, insured take with them the profits generated by the investment strategy – but they also bear the losses in the event of unfavorable market developments.
• The MyPension portal is used to determine the risk profile and select the investment strategy.
• One-time choice of whether to transfer all the assets accrued in the current retirement capital savings to the new 1e retirement capital savings or to pension capital savings. From January 2020, savings contributions will be credited exclusively to the new 1e retirement capital savings.

Next steps

August 22, 2019
Webcast to introduce the new 1e retirement capital savings. Insured can watch live from their PC. A limited number of places will be available in the Uetlihof auditorium in Zurich for employees to attend in person. Invitations will be sent out in the summer.

August 22 to September 30, 2019
Insured make a one-time decision by no later than September 30, 2019, as to whether they wish to transfer all of their assets accrued in the current retirement capital savings to the new 1e retirement capital savings or to the pension capital savings pot. The decision to transfer to 1e retirement capital savings or to pension capital savings is made in MyPension. Further information will be available on the Pension Fund website.
From January 2020, contributions on salary components above CHF 127,980 will be transferred to the new 1e retirement capital savings.

From August 22, 2019
Insured determine their risk profile and select their investment strategy. The strategy can be changed at any time using the MyPension portal. The initial investment in the new investment strategy will take place in the second half of January 2020.