Nestlé pension benefits in Switzerland : Fonds de Pensions Nestlé

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 8’500 active insured members and over 5’900 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 10 employees.

Key figures

	31.12.2022	31.12.2023
Funded status	108.3%	113.4%
Available assets	CHF 7’383.6 mio	CHF 7’627.8 mio
Liabilities	CHF 6’818.1 mio	CHF 6’724.7 mio
– Active member’s liabilities	CHF 2’605.2 mio	CHF 2’728.2 mio
– Pensioners ‘liabilities	CHF 3’989.4 mio	CHF 3’935.1 mio
– Actuarial provisions	CHF 223.5 mio	CHF 61.4 mio
Investment fluctuation reserve	CHF 565.5 mio	CHF 903.1 mio
Non-committed funds	0 mio	0 mio
Investment performance (net of costs)	-13.6%	5.3%
Asset management fees	0.49%	0.48%
Assets allocation
– Cash and cash equivalents	1.5%	1.1%
– Bonds	39.7%	41.0%
– Equities	25.3%	28.3%
– Real estate	22.6%	18.2%
– Infrastructure	0.4%	0.9%
– Alternative investments	10.5%	10.5%
Interest rate on retirement savings accounts	1.0%	4.5%
Technical interest rate	2.0%	2.0%
Actuarial tables	LPP 2020	LPP 2020
Headcount	14’318	14’363
– Of which active members	8’402	8’447
– Of which pensioners	5’916	5’916

Evolution funding ratio

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.

2024

Adapting of regulation to take account of the AVS-reform (AVS 21) which entered into force on January 1st.

2023

The Fonds de Pensions Nestlé celebrates its 75th anniversary.
Adopting a climate policy as an integral part of responsible investment policy.

2022

Integration of infrastructure in investment strategy.

2021

Modification of technical interest rate from 2.25% to 2% as well as biometrical basis, with no impact on conversion rates.

2018

Modification of technical interest rate from 3% to 2.25% as well as biometrical basis. Corresponding reduction in conversion rates with compensatory measures for a large group of insured members.
Adopting a policy for responsible investment taking into account environmental, social and governance (ESG) factors in the development of the investment strategy and asset management.
A new organizational regulation entered into force, defining the management of the Fund and the tasks and powers of its bodies.

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.

2014

Integration of the pension liabilities of the staff of Galderma Spirig.

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.

2009

Introduction of a new software to manage pension benefit administration. Integration of the pension liabilities of the staff of Henniez.

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”.

1999

Raise of retirement age for women at age 64

1995

Introduction of the Federal Law on vested benefits and encouragement of homeownership

1993

The Fonds de Pensions Nestlé took over the pension liabilities of the staff of FRISCOFINDUS.

1992

Modification of vesting scale up to 35 years of membership. The Fonds de Pensions Nestlé took over the pension liabilities of the staff of HIRZ.

1991

The Fonds de Pensions Nestlé took over the pension liabilities of the staff of THOMI + FRANCK.

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.

1984

Modification of the retirement pension objective

1981

Raise of retirement age for women at age 62

1975

Modification of the retirement pension objective

1973

The “Fonds de Pensions Nestlé I” took over the pension liabilities of the staff of the former URSINA.

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.

1941

At the death of the Chairman of the Board of Directors and former managing director Louis Dapples in 1937, the Board of Directors decided to set up within five years a special social fund named the “Louis Dapples Fund“ using reserves set aside for this purpose. The Fund was established in late 1941, but had been operating retroactively since 1939, paying pensions to disabled workers, widows and orphans.

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.

1904

One year before the merge with Anglo-Swiss Condensed Milk Co. based in Cham, four charitable institutions were created for Nestlé staff in Switzerland.

1880

As early as the 1880s, male and female workers at Nestlé were covered by a sickness fund, an insurance fund, a savings scheme and a social benefits scheme.