Annuity Plan
Pension Fund of Credit Suisse Group (Switzerland)
Annuity Insurance
Effective January 1, 2011
The Most Important Facts about the Pension Fund The Pension Fund of Credit Suisse Group (Switzerland) is one of the largest pension institutions in Switzerland with total assets of just under CHF 13 billion, approx. 24,000 active insured, and more than 10,000 pension recipients. It is subject to the Swiss Federal Act on Occupational Retirement, Survivors' and Disability Pension Plans (BVG), a legal framework that sets out certain minimum requirements. The provisions of the Pension Fund plans go far beyond the minimum requirements of the BVG.
Annuity Insurance
4
Contributions
6
Retirement
8
Retirement Benefits
12
Disability Benefits
16
Benefits Payable in the Event of Death and Order of Beneficiaries
20
Purchase of Pension Benefits
24
Leaving the Pension Fund
28
Glossary
30
Appendix – Detailed Information on the Insurance Certificate
Any gender-specific terms used refer to both men and women.
3
Annuity Insurance Annuity insurance includes the annuity plan, the lump-sum plan, and Plan 58. Pension Plan System The annuity plan is a defined benefit system. The benefits for retirement, death and disability correspond to 70% of your last pensionable salary (your gross salary minus the coordination deduction). The lump-sum plan is a defined contribution plan. In a defined contribution system the savings process is transparent, functioning like a savings account. You and the employer jointly pay savings
4
contributions that are defined as a percentage of your insured Award. These contributions are credited to you individually and, together with interest, vested benefits brought into the fund and purchases of additional benefits, they form your retirement capital. If you make an advance withdrawal for home ownership purposes or if a payment is made under a divorce settlement, your retirement capital will be reduced accordingly.
Annuity Plan Conditions for admission: The annuity plan has been closed to new entrants since January 1, 2010. The annuity plan is a defined benefit system that insures your annual salary (not including any Award) from CHF 20,880 up to a maximum pensionable salary of CHF 250,000. Your pension benefits and your monthly contributions are calculated on the basis of your annual pensionable salary. To avoid double insurance and prevent overinsurance when an insured event occurs (retirement, disability, death), the various social insurance offices coordinate their benefits. For this reason, the Pension Fund reduces your annual salary subject to AHV contributions (excluding Awards) using a coordination deduction. This corresponds to one-third of your annual salary up to a maximum of CHF 27,840 (the maximum AHV retirement pension in 2011). This gives the pensionable salary insured by the Pension Fund.
Lump-Sum Plan Conditions for admission: Cash portion of the discretionary variable incentive award ("Award") exceeding CHF 5,000 The lump-sum plan is a defined contribution system. This pension plan insures the cash portion of the Award that exceeds CHF 5,000, up to a maximum of CHF 500,000. Awards under CHF 5,000 and those granted in the form of shares and options are not insured. As soon as you receive an Award of over CHF 5,000, you will automatically be insured under the lumpsum plan and pay savings contributions together with the employer when the Award is paid out.
Plan 58 Conditions for admission: You can join Plan 58 on request. This voluntary pension plan is only available to you if you have already exhausted your purchasing potential under the annuity plan. Plan 58 is used to prefinance early retirement. It is a voluntary pension plan in which neither savings nor risk contributions are paid. Admission to this voluntary pension plan is conditional on there being no pension gaps in the annuity plan. The assets in Plan 58 are accrued entirely by means of personal purchases made by you and serve to replace all or part of the reduction in your pension if you take early retirement.
Annual salary and Award
CHF 505,000
Annuity Insurance: Pensionable Salaries and Insured Awards
Lump-sum plan (Award) Maximum insured Award: CHF 500,000
Uninsured Award CHF 5,000 CHF 277,840
(gross)
Annuity plan (fixed annual salary) Maximum pensionable salary: CHF 250,000
AHV coordination deduction CHF 27,840
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Contributions The annuity plan is a defined benefit system in which the target benefit of 70% of the pensionable salary determines the amount of the contributions. The lump-sum plan is a defined contribution system in which the amount of the contributions is governed by your Award and the savings contribution you select.
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Annuity Plan Age-related contribution as stipulated by the Regulations. Contributions depend on the coverage ratio. The Board of Trustees decides annually on the level of contributions for the coming year. Your obligation to pay contributions to the annuity plan ends if an insured event occurs (retirement, disability, death) or when you leave the Pension Fund. Contributions to the Annuity Plan You and the employer both pay contributions to the annuity plan. The employer makes a collective contribution to the overall financing of the annuity plan, which cannot therefore be allocated to individual accounts. The collective contribution paid by the employer equals 200% of the total contributions paid by the insured. Your contribution depends on your age. Since January 1, 2009, the Board of Trustees has taken account of the coverage ratio as well as age when determining the employee contribution rate. As soon as the coverage ratio falls below or exceeds the limits defined by the Board of Trustees in its intervention plan, the Board considers the option of changing the contribution rate. Further information on this can be found in the Regulations Governing the Annuity Insurance.
Lump-Sum Plan Three options for savings contributions: 3%, 6%, 9%. Upon admission, it is 6% until changed by the employee. You can change the savings contribution each year. The choice must be made in MyHR+ by January 26. The employer's contribution is always 9% (6% savings, 3% risk). Contributions to the Lump-Sum Plan You decide for yourself what level of savings contributions you want to pay to the lump-sum plan, within a defined set of limits. You can select your savings contribution – 3%, 6% or 9% – in MyHR+ under "Payroll, Compensation & Benefits" by January 26 at the latest. If you do not make a selection by this date, the savings contribution you last chose will automatically remain valid for the current year, unless you have not yet made a choice, in which case it will be 6%. The employer contribution in all cases is 9% (6% savings component, 3% risk component). Under the lump-sum plan, you will only pay savings contributions if you receive an Award that exceeds CHF 5,000. The savings contributions are deducted from the Award when it is paid out. These are calculated on the basis of your insured Award (the cash portion of the Award less the coordination deduction of CHF 5,000).
Plan 58 No savings or risk contributions are paid into this plan. You make individual payments yourself. There are no employer contributions. Contributions to Plan 58 Neither risk nor savings contributions are payable in Plan 58.
Tip The higher you set your savings contribution in the lump-sum plan, the more retirement benefits you can purchase tax efficiently under this plan. See Purchase of Pension Benefits, page 24. 7
Retirement The Pension Fund offers you the flexibility of retiring between the ages of 58 and 70. This enables you to tailor your retirement planning to your wishes and goals, and to shape your retirement in accordance with your individual needs.
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Annuity Plan Normal retirement: 63 (62 for Senior Management). Early retirement is possible from age 58. Deferred retirement is possible until age 70. Partial retirement is permitted.
Lump-Sum Plan Retirement capital paid out on retirement. In the event of partial retirement, entitlement to the retirement capital is proportionate to the percentage of retirement.
Plan 58 Accrued assets are transferred to the annuity plan to compensate all or part of the reduction in retirement income as a result of early retirement.
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Retirement If you terminate your employment relationship after you turn 58, you can either retire or request that your vested benefits be paid out. You can take normal, early or deferred retirement. Partial retirement, with a corresponding reduction in your level of employment, is also possible.
Normal Retirement The normal retirement age is 62 for Senior Management (Vice President, Director, Managing Director) and 63 for all other employees.
58
59
60
61
62 / 63
64
65
66
67
68
69
70 Age
Early Retirement Early retirement is not possible before age 58. If you retire early, your lifetime retirement pension will be reduced. See figure on page 11.
Deferred Retirement Deferred retirement means that you remain employed beyond the normal retirement age. Payment of your retirement pension by the Pension Fund is deferred until you actually stop working, but no later than age 70, and its amount is increased accordingly.
Partial Retirement Partial retirement, with a corresponding reduction in your level of employment, is also possible. Retirement can take place in one or more stages. In the event of partial retirement, you are entitled to the retirement capital in the lumpsum plan in proportion to the percentage of retirement.
Plan 58
Part-Time 58+ Under the Part-time 58+ model, once you reach the age of 58 – subject to the agreement of your employer – you can reduce your level of employment (accepting a corresponding fall in your annual salary) with no adjustment to the pensionable salary in the Pension Fund. You can reduce your level of employment by up to 50%, but to no less than 50%.*
58
59
60
61
62 / 63
64
65
66
67
68
69
70 Age
*For further information, please visit our website at www.credit-suisse.com/pensionfund
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Use of Accrued Assets in Plan 58 in the Case of Early Retirement at Age 58
Accumulation of assets ca. from 50
51
52
53
54
55
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If you want to avoid reductions in your retirement pension as a result of early retirement, you can prefinance your early retirement using Plan 58. On retirement, the assets accrued in this plan are used to partially or fully offset the reduction in your pension as a result of early retirement.
Prefinancing of the reduction
Prefinancing of the pension reduction via Plan 58 Purchase amounts spread over several years or as a single lump sum up to the maximum amount of the pension reduction.
57
58
59
60
61
62
63 Age
0 3 Pension reduction in %
+
6 10 13
3
6
9 -%
Pension reduction for Senior Management in % Vice President, Director, Managing Director
-%
Pension reduction for employees in % excluding Senior Management
15 18
11
Retirement Benefits When you retire, you generally receive a lifetime retirement pension from the Pension Fund. But you can also draw part of your retirement capital as a single lump-sum payment. The decision between pension and lump sum should be given careful consideration.
12
Annuity Plan Retirement pension or pension with guaranteed duration. Retiree's child's pension. AHV bridging pension. Lump-sum withdrawal.
Lump-Sum Plan Retirement capital paid out.
Plan 58 Transfer of accrued assets to the annuity plan to compensate all or part of the reduction in retirement income.
Retirement Pension When you retire, you will receive a lifetime retirement pension from the Pension Fund equal to a maximum of 70% of your pensionable salary. If you have any pension gaps in the annuity plan, the pension you receive on retirement will be reduced accordingly. You are generally recommended to close any pension gaps so that you receive the maximum retirement pension. When you retire, you will receive the assets in the lump-sum plan as a single lump-sum payment. The Pension Fund website at www.credit-suisse.com/pensionfund offers a pension calculator tool which you can use to simulate the effects on your retirement pension of purchases, lump-sum withdrawals and/or your selected type of retirement (early, normal, deferred). Retirement Pension with Guaranteed Duration Instead of a regular retirement pension, you can request a retirement pension with a guaranteed duration of 10, 20 or 30 years. This pension benefit is intended primarily for persons who would like to provide financial security to those who survive them – cohabiting partners, for instance – in the form of a lump sum payable at death, as no survivor's benefits will be paid out upon their death. For further information and the terms of this pension benefit, please see the information sheet "Retirement Pension with Guaranteed Duration," available at www.credit-suisse.com/pensionfund. Retiree's Child's Pension If you are drawing a retirement pension and have children who meet the eligibility requirements, you will also receive a retiree's child's pension in addition to your retirement pension under the annuity plan. This will equal 10% of your retirement pension for one child, 20% for two children, and 30% for three or more children. To qualify, children must be under 18. If the children are still in education, they may continue to draw the pension until they have completed their education, but only until they reach the age of 25.
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Retirement Benefits Lump-Sum Withdrawal When you retire you are entitled to withdraw up to 50% of your vested benefits – consisting of retirement assets in the annuity plan and Plan 58 – as a lump sum. Please submit your request for a lumpsum withdrawal to the Pension Fund at least one month before retirement, together with the written consent of your spouse or registered partner. A lump-sum withdrawal will reduce the amount of your annual retirement pension.
Example: Full AHV Bridging Pension Starting Immediately on Retirement at Age 58 You have the option of drawing a full AHV bridging pension of CHF 27,840 annually as soon as you retire. Until you reach age 60, the entire costs of the AHV bridging pension are met by you. From age 60 onwards, the Pension Fund participates in the temporary AHV bridging pension up to a maxi-
Consider the following if you are thinking about choosing this option: fixed costs (budget, living costs, etc.); supplementary income after retirement (investment income, AHV pension, etc.); debts (mortgage, loans, etc.); family circumstances; tax burden/tax rates. The retirement capital accumulated in the lumpsum plan is automatically paid out as a lump sum when you retire, unless you ask for it to be transferred to the annuity plan to increase your retirement pension to the maximum 70% of your pensionable salary.
mum of CHF 13,920. You may finance the amount needed to raise this pension to the maximum AHV bridging pension in two ways: by purchasing pension benefits, or by reducing the amount of your lifetime retirement pension. The temporary AHV bridging pension may only be drawn until you reach the normal AHV retirement age.
Retirement pension from the Pension Fund (Individual pension amount, max. 70% of pensionable salary)
Salary
AHV retirement pension (from age 64 for women)
AHV bridging pension financed by the insured AHV bridging pension financed by the Pension Fund1
58
59
60
61
62
63
64 / 65 Age
1
The AHV bridging pension financed by the Pension Fund will be reduced if you have not been insured with the Pension Fund for an uninterrupted period of at least ten years at the time of your retirement.
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AHV Bridging Pension The temporary AHV bridging pension is a pension benefit from the Pension Fund. It must not be confused with the AHV retirement pension from the Swiss Federal Old Age and Survivors' Insurance system. If you retire before reaching the normal AHV retirement age (currently 64 for women and 65 for men), the Pension Fund can provide you with supplementary income in the form of a temporary AHV bridging pension. Within certain limits, you can decide both the amount of the temporary AHV bridging pension and when to draw it. Please note, however, that you cannot draw a temporary AHV bridging pension before reaching the age of 58, and that it is limited to CHF 27,840 (the maximum retirement pension payable under the AHV in 2011).
If you take early retirement, you yourself can finance the temporary AHV bridging pension until you reach age 60 – either by purchasing benefits from the Pension Fund, or by reducing the amount of your lifetime retirement pension. From age 60 at the earliest, you will receive one-half of an AHV bridging pension from the Pension Fund of up to CHF 13,920 per year. The costs will be met by the Pension Fund. You can decide whether you yourself wish to finance the amount that would raise this pension to the maximum AHV bridging pension.
Speak to an Advisor As soon as you and your line manager have agreed on your retirement date you should contact your pensions advisor at the Pension Fund, who will be happy to calculate your retirement benefits at your proposed retirement date and to discuss AHV bridging pensions and the possibility of a lump-sum withdrawal.
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Disability Benefits As a rule, you are entitled to receive disability benefits from the Pension Fund if you are at least 25% disabled (and unable to work). The three pension plans offer different benefits in the event of disability.
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Annuity Plan
Lump-Sum Plan
Plan 58
Temporary disability pension Disabled person's child's pension Disability bridging pension
Temporary disability pension Disabled person's child's pension
Payout of accrued assets
Temporary Disability Pension If you become disabled, you will receive a temporary disability pension from the annuity and lump-sum plans until you reach normal retirement age (62 or 63) at the latest. When you retire, this is replaced in the annuity plan by a lifetime retirement pension of the same amount. See Retirement Benefits, page 12. The following table summarizes the most important facts about the temporary disability pension.
Amount of pension and basis for calculation
The amount of your temporary disability pension, which is shown on your personal insurance certificate, is equal to a maximum of 70% of your pensionable salary. It is the same as your insured retirement pension. If you are partially disabled, the pension is calculated on the basis of your degree of disability.
Beginning and end of entitlement
When you first become unable to work, your employer will continue to pay you a salary for a maximum of 12 months, based on your years of service, or you will receive daily benefits under the insurance against loss of earnings. After that you will receive a temporary disability pension until you reach normal retirement age at the latest. Entitlement to a pension ends: if you regain the ability to work; on your death. When you reach normal retirement age, you will receive a lifetime retirement pension (of the same amount) instead of the temporary disability pension.
The amount of your temporary disability pension is shown on your personal insurance certificate. The pension is equal to 50% of the average of the last three insured Awards, up to a maximum of CHF 75,000. If you are partially disabled, the pension is calculated on the basis of your degree of disability.
The temporary disability pension from the lump-sum plan will be paid out at the same time as the one from the annuity plan, and will cease no later than when you reach normal retirement age. Entitlement to a pension ends: if you regain the ability to work; on your death. When you reach normal retirement age, you will receive a single lump-sum payment equal to the amount of your available retirement capital instead of the temporary disability pension.
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Disability Benefits
Disability Pensions at a Glance
Insurance against loss of earnings (90% of salary)
Salary
Continued payment of salary (100% of salary)
Event
Retirement pension from the Pension Fund (Individual pension amount, max. 70% of pensionable salary)
Temporary disability pension from the Pension Fund1 (Individual pension amount, max. 70% of pensionable salary)
AHV retirement pension (from age 64 for women)
Disability bridging pension from the Pension Fund2 Disability pension from the Swiss Federal Disability Insurance (IV)
Total of 12 months
62 / 63
64
65 Age
1
When you reach normal retirement age, this temporary disability pension is replaced by a lifetime retirement pension of the same amount.
Disabled Person's Child's Pension If you have children who meet the eligibility requirements, you will be entitled to a disabled person's child's pension from the annuity and lump-sum plans. This will equal 10% of your temporary disability pension for one child, 20% for two children, and 30% for three or more children. To qualify, children must be under 18. If the children are still in education, they may continue to draw the pension until they have completed their education, but only until they reach the age of 25.
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2
Until you start receiving the Swiss Federal Disability Insurance (IV) pension, the Pension Fund will make you an advance on that pension by paying you a disability bridging pension equal to the anticipated amount of your future IV pension.
Disability Bridging Pension Until you start receiving the disability pension from the Swiss Federal Disability Insurance (IV), the Pension Fund will make you an advance on that pension by paying you a disability bridging pension equal to the anticipated amount of your future IV pension. To be entitled to a disability bridging pension from the Pension Fund, you must first have filed an application for a disability pension with the Swiss Federal Disability Insurance. Plan 58 At the time the Pension Fund starts to pay you a temporary disability pension, the assets you have accrued in Plan 58 will be paid out to you as a single lump sum.
Note In the event of disability you are no longer required to pay contributions to the annuity or lump-sum plans. Disabled persons are exempt from the obligation to pay contributions (waiver of contributions) for as long as they remain disabled, or until they reach normal retirement age at the latest. During the period of disability the Pension Fund will pay both your own savings contributions and those of the employer, which will be calculated on the basis of your last pensionable salary before the occurrence of the disability. The Pension Fund pays a total savings contribution of 12% to the lump-sum plan (6% employee contribution, 6% employer contribution) so that your retirement benefits continue to accrue. Savings contributions are calculated on the basis of the average of the last three insured Awards.
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Benefits Payable in the Event of Death and Order of Beneficiaries If an active insured or a recipient of a retirement or disability pension dies, pension benefits and/or lump sums will be paid out. Make use of the options available to you by specifying in good time to whom you wish to leave the lump sum payable at death.
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Surviving Spouse's Pension The surviving spouse will receive a Surviving spouse's pension if he or she satisfies one of the following three conditions: The surviving spouse is responsible for financially supporting one or more children. The surviving spouse is 45 or older at the time of your death, and your marriage lasted at least three years. The surviving spouse is entitled to a pension from the Swiss Federal Disability Insurance or becomes entitled to such a pension within 12 months after your death. Surviving spouses who do not satisfy any of these conditions will receive a lump-sum payment equal to three times the annual amount of the surviving spouse's pension. The following table summarizes the key information on the surviving spouse's pension upon the death of an active insured or recipient of a disability pension.
Annuity Plan
Lump-Sum Plan
Amount of pension
The surviving spouse's pension equals 66 2/3% of your insured retirement pension or the disability pension already being drawn.
The temporary surviving spouse's pension is 66 2/3% of the disability pension.
Beginning and end of entitlement
When an active insured dies, the surviving spouse receives a posthumous salary payment from the employer.
The temporary surviving spouse's pension under the lump-sum plan is paid out at the same time as the one from the annuity plan.
The Pension Fund then pays a surviving spouse's pension. Entitlement to this pension ends: on remarriage; a t the latest on the death of the person entitled to the pension. If the surviving spouse remarries, the Pension Fund pays a single lump sum equivalent to three times the annual surviving spouse's pension that is being discontinued. If the recipient of a disability pension dies, the surviving spouse's pension will be paid starting the month after the pension recipient's death.
Entitlement to this pension ends: on remarriage; on the death of the person entitled to a pension, but at the latest on the date on which the active insured or the recipient of a disability pension would have reached normal retirement age. If the surviving spouse remarries, the Pension Fund pays a single lump sum equivalent to three times the annual surviving spouse's pension that is being discontinued.
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Benefits Payable in the Event of Death and Order of Beneficiaries The following table summarizes the key information on the surviving spouse's pension upon the death of a retiree.
Annuity Plan
Lump-Sum Plan
Amount of pension
The surviving spouse's pension is 66 2/3% of the retirement pension.
No pension is paid.
Beginning and end of entitlement
The surviving spouse's pension will be paid starting the month after the retiree's death.
No pension is paid.
Orphan's Pension Eligible children receive an orphan's pension from the annuity and lump-sum plans. This amounts to 20% of your insured retirement pension (or the retirement or disability pension already being drawn) for each child, up to a maximum of 60% in the case of three or more children. To qualify, children must be under 18. If the children are still in education, they may continue to draw the pension until they have completed their education, but only until they reach the age of 25.
Lump Sum Payable at Death in Case of Active Insured and Recipients of a Disability Pension The following table summarizes the key information on the lump sum payable at death.
Amount of the lump sum payable at death
Annuity Plan
Lump-Sum Plan
Plan 58
If an active insured dies, a lump sum payable at death equal to 50% of the pensionable annual salary will be paid out in addition to the surviving spouse's pension.
The lump sum payable at death corresponds to your available retirement capital, regardless of whether or not a surviving spouse's pension is to be paid.
If an active insured dies, the assets accrued to date are paid out as a lump sum.
If no surviving spouse's pension is paid, the lump sum payable at death will equal the vested benefits available or at least 50% of your pensionable annual salary. If a person receiving a disability pension dies, the lump sum payable at death corresponds to three times the annual pension minus any pension income already drawn. 22
No lump sum is paid on the death of a person receiving a disability pension, as the assets accrued under Plan 58 were already paid out upon initial commencement of the temporary disability pension.
Order of Beneficiaries in the Pension Fund Regulations The amounts payable at death are disbursed by the Pension Fund in accordance with the order of beneficiaries stated in the Regulations. The order is as follows:
a.
aa) the spouse; ab) the children of the deceased who are entitled to an orphan's pension; ac) natural persons who were supported to a considerable extent by the insured or the person with whom the insured had lived in a domestic partnership without interruption during the five years preceding death;
b. in the absence of beneficiaries under a.: ba) the children of the deceased who are not entitled to an orphan's pension; bb) the parents; bc) the siblings;
c. in the absence of beneficiaries under a. or b.: other legal heirs, to the exclusion of the community.
Changing the Order of Beneficiaries Stipulated in the Regulations You can change the order of beneficiaries within a specific category (e.g. under category a.), or distribute the benefits payable at death among multiple beneficiaries in the same category. Beneficiaries in a higher category, however, cannot be passed over in favor of those in a lower category. Changes to the order of beneficiaries can only be made within a specific category. Only in the absence of beneficiaries within a category can their place be taken by beneficiaries lower down the list. If you wish to change the order of beneficiaries stipulated in the Regulations, it is essential that you send the completed "Amendment to the General Order of Beneficiaries" form to the Pension Fund during your lifetime. The form can be found at www.credit-suisse.com/pensionfund. Benefits for Cohabiting Partners Pensions for cohabiting partners are not insured under the annuity insurance. As a result, your cohabiting partner will not receive a pension after your death, though he or she can be the beneficiary of a lump sum payable at death. If you wish to name your cohabiting partner as a beneficiary, the "Amendment to the General Order of Beneficiaries" form must be submitted. Enter your cohabiting partner on the form in category a., section ac). If no such entry is made on the form, we will not be able to take your cohabiting partner into consideration when paying out the lump sum payable at death. If you have entered your cohabiting partner in the appropriate section of the form, he or she will receive the lump sum payable at death provided one of the following conditions is met: You supported your cohabiting partner to a considerable extent. You were living together in a domestic partnership without interruption during the five years preceding death.
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Purchase of Pension Benefits By purchasing additional pension benefits, you optimize your personal retirement situation while also enjoying tax privileges. Make your additional purchase by December 18 of each year at the latest for it to be tax deductible in the current tax period.
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Opportunities to purchase additional benefits do not necessarily mean you are underinsured. What matters is the particular pension plan in which the potential for purchasing additional benefits exists.
Annuity Plan Purchases you make here will increase your insured pension benefits. If you are shown as being able to purchase additional benefits in the annuity plan, it means you will not receive the maximum possible pension benefits on retirement or in the event of disability or death. An option to purchase additional benefits in the annuity plan can be compared to a gap in pension coverage. We recommend that you check for gaps in your annuity plan and close them where appropriate. This makes sense, as you thus ensure that you receive the maximum pension benefits based on your annual salary. Reasons for purchasing additional benefits in the annuity plan The vested benefits that you transferred when you joined the Pension Fund were not sufficient to close the gap. Your vested benefits were reduced as a result of divorce or an advance withdrawal to finance home ownership. You have increased your level of employment.
Lump-Sum Plan Purchases increase your retirement capital. Purchases normally have no effect on the insured death and disability benefits.
Plan 58 Purchases will increase your assets under this plan. You may only buy into this plan if you have already exhausted your purchasing potential under the annuity plan.
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Purchase of Pension Benefits Things to Consider When Purchasing Additional Benefits In accordance with a recent ruling of the Swiss Federal Supreme Court, once you have purchased additional benefits, your entire retirement capital is subject to a three-year blocking period for lumpsum withdrawals. These include: advance withdrawal to finance home ownership; cash payment on emigrating or becoming self-employed; lump-sum withdrawal on retirement. While it is still possible to make a lump-sum withdrawal within this three-year period, the tax authority will retroactively annul the tax deductibility of the amount paid in. The three-year blocking period is especially relevant if you are approaching retirement and are planning to make a lump-sum withdrawal, or if you wish to use funds from your employee benefits insurance to acquire residential property for your own use within the next three years.
If you are considering purchasing additional benefits, you should also bear in mind the following restrictions Purchases may only be made after repaying any advance withdrawals to finance home ownership. You may only make purchases if you have no vested benefits in other vested benefits institutions. Plan 58 is used to prefinance early retirement. You may only buy into Plan 58 if you have no opportunity to purchase additional benefits under the annuity plan. If you came here from abroad and have never before been a member of a Swiss pension fund, for the first five years after you move here the maximum amount for which you may purchase benefits in any one year is 20% of your pension able salary. If you were previously self-employed and have funds in Pillar 3a, these may be taken into account when calculating the maximum possible purchase amount. You can close gaps resulting from a divorce at any time without being constrained by the applicable purchase restrictions. Payment Deadline Please make your purchase in good time so that it can be taken into account in the current tax period. If your payment reaches us after December 18, we will not be able to accept it and it will be returned to you.
Tip Consider your purchase options at an early stage, as the gap in your coverage increases each month. The later you purchase additional benefits, the larger the amount you will have to pay to close the gap. Additional purchases of Pension Fund benefits are deductible from your taxable income, regardless of which pension plan you have paid into. You can either make your purchase as a single payment or you can spread the payments over several years. Spreading the purchase amount over several years has the advantage that you can avoid moving into a higher income bracket more than once. If you have moved to Switzerland from abroad or if you earn income abroad, we recommend that you contact the tax authorities before purchasing additional pension benefits to clarify whether they would be tax deductible, or consult a tax advisor.
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27
Leaving the Pension Fund If you end the employment relationship, your membership in the Pension Fund also comes to an end. Payment of the Vested Benefits on Leaving the Pension Fund New pension fund
Transfer of the entire vested benefits to the new pension fund
Leaving the Pension Fund No cash payment
No new pension fund
Resident in Switzerland
Cash payment
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Transfer of the entire vested benefits to a vested benefits account or policy
Persons becoming self-employed may withdraw the entire vested benefits
Emigration to an EU/ EFTA member state
The mandatory BVG portion remains in Switzerland. The extra-mandatory amount may be withdrawn
Emigration to a non-EU/ EFTA member state
Withdrawal of the entire vested benefits is possible
You will receive the following benefits from the different pension plans when you leave the Pension Fund:
Annuity Plan
Lump-Sum Plan
Plan 58
Vested benefits in the form of the cash value of the accrued retirement pension (actuarial figure)
Vested benefits in the form of retirement capital
Vested benefits in the form of accrued assets
How the vested benefits are transferred depends on whether or not you join a new pension fund after your change of job. As a rule, the Pension Fund will transfer your vested benefits to the pension plan of your new employer. The Pension Fund will continue to cover you for the risks of disability and death until you have joined a new pension plan, but only up to one month after you leave the Pension Fund. For persons not joining a new pension fund, vested benefits will either be transferred to a vested benefits account with a bank or to a vested benefits policy with an insurer according to your instructions. Cash Payment In a few legally defined cases, vested benefits may be paid out in cash. With a cash payment, the vested benefits are transferred to a private account rather than a new pension fund or vested benefits foundation. Cash payments are subject to tax, and a cash payment requires the consent of your spouse or registered partner. You can have your vested benefits paid out in cash under the following circumstances: You become self-employed; You leave Switzerland permanently.
Tip: Check Your New Pension Situation The financing as well as the kind and scope of insured pension benefits differ from pension fund to pension fund. Changing jobs and transferring to a new pension fund can have advantages as well as disadvantages. You are therefore recommended to obtain an overview of your new pension situation as soon as possible, and to close any pension gaps, either by purchasing additional benefits from the new pension fund or by taking out private provision. Note on Leaving Switzerland Permanently The mandatory portion of the vested benefits cannot be paid out in cash if you leave Switzerland permanently to live in an EU or EFTA country where you will be subject to social security contributions. The BVG Security Fund can tell you how you will be affected by the social security regulations in the country you are moving to. Cooperation agreements have been concluded with the authorities of various EU and EFTA member states. You will find detailed information on these agreements, country fact sheets and relevant application forms at www.sfbvg.ch.
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Glossary AHV The abbreviation AHV stands for Eidgenössische Alters- und Hinterlassenenversicherung (Swiss Federal Old Age and Survivors' Insurance). AHV bridging pension A temporary pension granted by the Pension Fund between retiring and reaching the normal AHV retirement age (women: 64, men: 65). Award Discretionary variable incentive award Beneficiaries Persons eligible to receive the lump sum payable at death from the Pension Fund. BVG The abbreviation BVG stands for Bundesgesetz über die berufliche Alters-, Hinterlassenen- und Invalidenvorsorge (Swiss Federal Act on Occupational Retirement, Survivors' and Disability Pension Plans). The BVG regulates mandatory minimum benefits. BVG age The BVG age is the calendar year minus the year of birth. Cash payment A cash payment is made when vested benefits are transferred to a private account. The written consent of any spouse or registered partner is required. Coordination deduction Your annual salary is reduced by the sum already insured by the AHV/IV. This corresponds to one-third of your annual salary up to a maximum of CHF 27,840 (the maximum AHV retirement pension in 2011). Coverage ratio The coverage ratio within the meaning of Art. 44 BVV2 provides information on the extent to which the Pension Fund’s net assets are covered by the retirement assets. A coverage ratio of over 100% means that all the Pension Fund's obligations are covered by assets. Defined benefit system In a defined benefit system the type and amount of the pension benefits are stipulated in the regulations (e.g. 70% of pensionable salary), providing the basis for determining the level of contributions.
Defined contribution system A system in which the level of contributions is defined in the regulations (either as a fixed amount in Swiss francs or as a percentage of a reference value). These contributions and the interest paid on them make up the retirement capital, which serves as the basis for calculating the insured pension benefits. Disability pension, temporary A temporary pension that is paid when a person is at least 25% disabled. The temporary disability pension is payable until the recipient reaches normal retirement age at the latest. Divorce In the event of divorce, the portion of the retirement capital that accrued during the marriage is divided equally. Insurance certificate The insurance certificate issued by the Pension Fund is a statement of your insured pension benefits. IV The abbreviation IV stands for Eidgenössische Invalidenversicherung (Swiss Federal Disability Insurance). Lump-sum plan The lump-sum plan insures the cash portion of your Award that exceeds CHF 5,000. Shares and options are not insured. Pensionable salary The pensionable salary refers to the annual salary subject to AHV contributions, less the coordination deduction. Plan 58 A voluntary plan with which you can finance early retirement in advance. Purchase If it is possible for you to purchase additional benefits in the Pension Fund, you can do so by making personal payments. Retirement pension A lifetime pension paid upon retirement. The maximum retirement pension is 70% of your pensionable salary in the Pension Fund. Vested benefits Your vested benefits will fall due upon leaving the Pension Fund. The amount of vested benefits to be transferred corresponds to the assets in the three pension plans. Waiver of contributions Disabled persons are exempt from the obligation to pay contributions for as long as their disability lasts or until they reach normal retirement age at the latest.
30
Further Information Do you have any questions about annuity insurance? Your Pensions Advisor will be happy to help. For contact details, please visit the website of the Pension Fund of Credit Suisse Group (Switzerland) at www.credit-suisse.com/ pensionfund.
PENSION FUND OF CREDIT SUISSE GROUP (SWITZERLAND) JPKM P.O. Box CH-8070 Zurich www.credit-suisse.com/pensionfund
JPKM 5520274 4.2011
This brochure is for information purposes only and summarizes the most important pension benefits of the annuity insurance in simplified form. Only the German version of the Regulations Governing the Annuity Insurance of the Pension Fund of Credit Suisse Group (Switzerland) is legally binding.
Annuity Insurance
Effective January 1, 2011
The Most Important Facts about the Pension Fund The Pension Fund of Credit Suisse Group (Switzerland) is one of the largest pension institutions in Switzerland with total assets of just under CHF 13 billion, approx. 24,000 active insured, and more than 10,000 pension recipients. It is subject to the Swiss Federal Act on Occupational Retirement, Survivors' and Disability Pension Plans (BVG), a legal framework that sets out certain minimum requirements. The provisions of the Pension Fund plans go far beyond the minimum requirements of the BVG.
Annuity Insurance
4
Contributions
6
Retirement
8
Retirement Benefits
12
Disability Benefits
16
Benefits Payable in the Event of Death and Order of Beneficiaries
20
Purchase of Pension Benefits
24
Leaving the Pension Fund
28
Glossary
30
Appendix – Detailed Information on the Insurance Certificate
Any gender-specific terms used refer to both men and women.
3
Annuity Insurance Annuity insurance includes the annuity plan, the lump-sum plan, and Plan 58. Pension Plan System The annuity plan is a defined benefit system. The benefits for retirement, death and disability correspond to 70% of your last pensionable salary (your gross salary minus the coordination deduction). The lump-sum plan is a defined contribution plan. In a defined contribution system the savings process is transparent, functioning like a savings account. You and the employer jointly pay savings
4
contributions that are defined as a percentage of your insured Award. These contributions are credited to you individually and, together with interest, vested benefits brought into the fund and purchases of additional benefits, they form your retirement capital. If you make an advance withdrawal for home ownership purposes or if a payment is made under a divorce settlement, your retirement capital will be reduced accordingly.
Annuity Plan Conditions for admission: The annuity plan has been closed to new entrants since January 1, 2010. The annuity plan is a defined benefit system that insures your annual salary (not including any Award) from CHF 20,880 up to a maximum pensionable salary of CHF 250,000. Your pension benefits and your monthly contributions are calculated on the basis of your annual pensionable salary. To avoid double insurance and prevent overinsurance when an insured event occurs (retirement, disability, death), the various social insurance offices coordinate their benefits. For this reason, the Pension Fund reduces your annual salary subject to AHV contributions (excluding Awards) using a coordination deduction. This corresponds to one-third of your annual salary up to a maximum of CHF 27,840 (the maximum AHV retirement pension in 2011). This gives the pensionable salary insured by the Pension Fund.
Lump-Sum Plan Conditions for admission: Cash portion of the discretionary variable incentive award ("Award") exceeding CHF 5,000 The lump-sum plan is a defined contribution system. This pension plan insures the cash portion of the Award that exceeds CHF 5,000, up to a maximum of CHF 500,000. Awards under CHF 5,000 and those granted in the form of shares and options are not insured. As soon as you receive an Award of over CHF 5,000, you will automatically be insured under the lumpsum plan and pay savings contributions together with the employer when the Award is paid out.
Plan 58 Conditions for admission: You can join Plan 58 on request. This voluntary pension plan is only available to you if you have already exhausted your purchasing potential under the annuity plan. Plan 58 is used to prefinance early retirement. It is a voluntary pension plan in which neither savings nor risk contributions are paid. Admission to this voluntary pension plan is conditional on there being no pension gaps in the annuity plan. The assets in Plan 58 are accrued entirely by means of personal purchases made by you and serve to replace all or part of the reduction in your pension if you take early retirement.
Annual salary and Award
CHF 505,000
Annuity Insurance: Pensionable Salaries and Insured Awards
Lump-sum plan (Award) Maximum insured Award: CHF 500,000
Uninsured Award CHF 5,000 CHF 277,840
(gross)
Annuity plan (fixed annual salary) Maximum pensionable salary: CHF 250,000
AHV coordination deduction CHF 27,840
5
Contributions The annuity plan is a defined benefit system in which the target benefit of 70% of the pensionable salary determines the amount of the contributions. The lump-sum plan is a defined contribution system in which the amount of the contributions is governed by your Award and the savings contribution you select.
6
Annuity Plan Age-related contribution as stipulated by the Regulations. Contributions depend on the coverage ratio. The Board of Trustees decides annually on the level of contributions for the coming year. Your obligation to pay contributions to the annuity plan ends if an insured event occurs (retirement, disability, death) or when you leave the Pension Fund. Contributions to the Annuity Plan You and the employer both pay contributions to the annuity plan. The employer makes a collective contribution to the overall financing of the annuity plan, which cannot therefore be allocated to individual accounts. The collective contribution paid by the employer equals 200% of the total contributions paid by the insured. Your contribution depends on your age. Since January 1, 2009, the Board of Trustees has taken account of the coverage ratio as well as age when determining the employee contribution rate. As soon as the coverage ratio falls below or exceeds the limits defined by the Board of Trustees in its intervention plan, the Board considers the option of changing the contribution rate. Further information on this can be found in the Regulations Governing the Annuity Insurance.
Lump-Sum Plan Three options for savings contributions: 3%, 6%, 9%. Upon admission, it is 6% until changed by the employee. You can change the savings contribution each year. The choice must be made in MyHR+ by January 26. The employer's contribution is always 9% (6% savings, 3% risk). Contributions to the Lump-Sum Plan You decide for yourself what level of savings contributions you want to pay to the lump-sum plan, within a defined set of limits. You can select your savings contribution – 3%, 6% or 9% – in MyHR+ under "Payroll, Compensation & Benefits" by January 26 at the latest. If you do not make a selection by this date, the savings contribution you last chose will automatically remain valid for the current year, unless you have not yet made a choice, in which case it will be 6%. The employer contribution in all cases is 9% (6% savings component, 3% risk component). Under the lump-sum plan, you will only pay savings contributions if you receive an Award that exceeds CHF 5,000. The savings contributions are deducted from the Award when it is paid out. These are calculated on the basis of your insured Award (the cash portion of the Award less the coordination deduction of CHF 5,000).
Plan 58 No savings or risk contributions are paid into this plan. You make individual payments yourself. There are no employer contributions. Contributions to Plan 58 Neither risk nor savings contributions are payable in Plan 58.
Tip The higher you set your savings contribution in the lump-sum plan, the more retirement benefits you can purchase tax efficiently under this plan. See Purchase of Pension Benefits, page 24. 7
Retirement The Pension Fund offers you the flexibility of retiring between the ages of 58 and 70. This enables you to tailor your retirement planning to your wishes and goals, and to shape your retirement in accordance with your individual needs.
8
Annuity Plan Normal retirement: 63 (62 for Senior Management). Early retirement is possible from age 58. Deferred retirement is possible until age 70. Partial retirement is permitted.
Lump-Sum Plan Retirement capital paid out on retirement. In the event of partial retirement, entitlement to the retirement capital is proportionate to the percentage of retirement.
Plan 58 Accrued assets are transferred to the annuity plan to compensate all or part of the reduction in retirement income as a result of early retirement.
9
Retirement If you terminate your employment relationship after you turn 58, you can either retire or request that your vested benefits be paid out. You can take normal, early or deferred retirement. Partial retirement, with a corresponding reduction in your level of employment, is also possible.
Normal Retirement The normal retirement age is 62 for Senior Management (Vice President, Director, Managing Director) and 63 for all other employees.
58
59
60
61
62 / 63
64
65
66
67
68
69
70 Age
Early Retirement Early retirement is not possible before age 58. If you retire early, your lifetime retirement pension will be reduced. See figure on page 11.
Deferred Retirement Deferred retirement means that you remain employed beyond the normal retirement age. Payment of your retirement pension by the Pension Fund is deferred until you actually stop working, but no later than age 70, and its amount is increased accordingly.
Partial Retirement Partial retirement, with a corresponding reduction in your level of employment, is also possible. Retirement can take place in one or more stages. In the event of partial retirement, you are entitled to the retirement capital in the lumpsum plan in proportion to the percentage of retirement.
Plan 58
Part-Time 58+ Under the Part-time 58+ model, once you reach the age of 58 – subject to the agreement of your employer – you can reduce your level of employment (accepting a corresponding fall in your annual salary) with no adjustment to the pensionable salary in the Pension Fund. You can reduce your level of employment by up to 50%, but to no less than 50%.*
58
59
60
61
62 / 63
64
65
66
67
68
69
70 Age
*For further information, please visit our website at www.credit-suisse.com/pensionfund
10
Use of Accrued Assets in Plan 58 in the Case of Early Retirement at Age 58
Accumulation of assets ca. from 50
51
52
53
54
55
56
If you want to avoid reductions in your retirement pension as a result of early retirement, you can prefinance your early retirement using Plan 58. On retirement, the assets accrued in this plan are used to partially or fully offset the reduction in your pension as a result of early retirement.
Prefinancing of the reduction
Prefinancing of the pension reduction via Plan 58 Purchase amounts spread over several years or as a single lump sum up to the maximum amount of the pension reduction.
57
58
59
60
61
62
63 Age
0 3 Pension reduction in %
+
6 10 13
3
6
9 -%
Pension reduction for Senior Management in % Vice President, Director, Managing Director
-%
Pension reduction for employees in % excluding Senior Management
15 18
11
Retirement Benefits When you retire, you generally receive a lifetime retirement pension from the Pension Fund. But you can also draw part of your retirement capital as a single lump-sum payment. The decision between pension and lump sum should be given careful consideration.
12
Annuity Plan Retirement pension or pension with guaranteed duration. Retiree's child's pension. AHV bridging pension. Lump-sum withdrawal.
Lump-Sum Plan Retirement capital paid out.
Plan 58 Transfer of accrued assets to the annuity plan to compensate all or part of the reduction in retirement income.
Retirement Pension When you retire, you will receive a lifetime retirement pension from the Pension Fund equal to a maximum of 70% of your pensionable salary. If you have any pension gaps in the annuity plan, the pension you receive on retirement will be reduced accordingly. You are generally recommended to close any pension gaps so that you receive the maximum retirement pension. When you retire, you will receive the assets in the lump-sum plan as a single lump-sum payment. The Pension Fund website at www.credit-suisse.com/pensionfund offers a pension calculator tool which you can use to simulate the effects on your retirement pension of purchases, lump-sum withdrawals and/or your selected type of retirement (early, normal, deferred). Retirement Pension with Guaranteed Duration Instead of a regular retirement pension, you can request a retirement pension with a guaranteed duration of 10, 20 or 30 years. This pension benefit is intended primarily for persons who would like to provide financial security to those who survive them – cohabiting partners, for instance – in the form of a lump sum payable at death, as no survivor's benefits will be paid out upon their death. For further information and the terms of this pension benefit, please see the information sheet "Retirement Pension with Guaranteed Duration," available at www.credit-suisse.com/pensionfund. Retiree's Child's Pension If you are drawing a retirement pension and have children who meet the eligibility requirements, you will also receive a retiree's child's pension in addition to your retirement pension under the annuity plan. This will equal 10% of your retirement pension for one child, 20% for two children, and 30% for three or more children. To qualify, children must be under 18. If the children are still in education, they may continue to draw the pension until they have completed their education, but only until they reach the age of 25.
13
Retirement Benefits Lump-Sum Withdrawal When you retire you are entitled to withdraw up to 50% of your vested benefits – consisting of retirement assets in the annuity plan and Plan 58 – as a lump sum. Please submit your request for a lumpsum withdrawal to the Pension Fund at least one month before retirement, together with the written consent of your spouse or registered partner. A lump-sum withdrawal will reduce the amount of your annual retirement pension.
Example: Full AHV Bridging Pension Starting Immediately on Retirement at Age 58 You have the option of drawing a full AHV bridging pension of CHF 27,840 annually as soon as you retire. Until you reach age 60, the entire costs of the AHV bridging pension are met by you. From age 60 onwards, the Pension Fund participates in the temporary AHV bridging pension up to a maxi-
Consider the following if you are thinking about choosing this option: fixed costs (budget, living costs, etc.); supplementary income after retirement (investment income, AHV pension, etc.); debts (mortgage, loans, etc.); family circumstances; tax burden/tax rates. The retirement capital accumulated in the lumpsum plan is automatically paid out as a lump sum when you retire, unless you ask for it to be transferred to the annuity plan to increase your retirement pension to the maximum 70% of your pensionable salary.
mum of CHF 13,920. You may finance the amount needed to raise this pension to the maximum AHV bridging pension in two ways: by purchasing pension benefits, or by reducing the amount of your lifetime retirement pension. The temporary AHV bridging pension may only be drawn until you reach the normal AHV retirement age.
Retirement pension from the Pension Fund (Individual pension amount, max. 70% of pensionable salary)
Salary
AHV retirement pension (from age 64 for women)
AHV bridging pension financed by the insured AHV bridging pension financed by the Pension Fund1
58
59
60
61
62
63
64 / 65 Age
1
The AHV bridging pension financed by the Pension Fund will be reduced if you have not been insured with the Pension Fund for an uninterrupted period of at least ten years at the time of your retirement.
14
AHV Bridging Pension The temporary AHV bridging pension is a pension benefit from the Pension Fund. It must not be confused with the AHV retirement pension from the Swiss Federal Old Age and Survivors' Insurance system. If you retire before reaching the normal AHV retirement age (currently 64 for women and 65 for men), the Pension Fund can provide you with supplementary income in the form of a temporary AHV bridging pension. Within certain limits, you can decide both the amount of the temporary AHV bridging pension and when to draw it. Please note, however, that you cannot draw a temporary AHV bridging pension before reaching the age of 58, and that it is limited to CHF 27,840 (the maximum retirement pension payable under the AHV in 2011).
If you take early retirement, you yourself can finance the temporary AHV bridging pension until you reach age 60 – either by purchasing benefits from the Pension Fund, or by reducing the amount of your lifetime retirement pension. From age 60 at the earliest, you will receive one-half of an AHV bridging pension from the Pension Fund of up to CHF 13,920 per year. The costs will be met by the Pension Fund. You can decide whether you yourself wish to finance the amount that would raise this pension to the maximum AHV bridging pension.
Speak to an Advisor As soon as you and your line manager have agreed on your retirement date you should contact your pensions advisor at the Pension Fund, who will be happy to calculate your retirement benefits at your proposed retirement date and to discuss AHV bridging pensions and the possibility of a lump-sum withdrawal.
15
Disability Benefits As a rule, you are entitled to receive disability benefits from the Pension Fund if you are at least 25% disabled (and unable to work). The three pension plans offer different benefits in the event of disability.
16
Annuity Plan
Lump-Sum Plan
Plan 58
Temporary disability pension Disabled person's child's pension Disability bridging pension
Temporary disability pension Disabled person's child's pension
Payout of accrued assets
Temporary Disability Pension If you become disabled, you will receive a temporary disability pension from the annuity and lump-sum plans until you reach normal retirement age (62 or 63) at the latest. When you retire, this is replaced in the annuity plan by a lifetime retirement pension of the same amount. See Retirement Benefits, page 12. The following table summarizes the most important facts about the temporary disability pension.
Amount of pension and basis for calculation
The amount of your temporary disability pension, which is shown on your personal insurance certificate, is equal to a maximum of 70% of your pensionable salary. It is the same as your insured retirement pension. If you are partially disabled, the pension is calculated on the basis of your degree of disability.
Beginning and end of entitlement
When you first become unable to work, your employer will continue to pay you a salary for a maximum of 12 months, based on your years of service, or you will receive daily benefits under the insurance against loss of earnings. After that you will receive a temporary disability pension until you reach normal retirement age at the latest. Entitlement to a pension ends: if you regain the ability to work; on your death. When you reach normal retirement age, you will receive a lifetime retirement pension (of the same amount) instead of the temporary disability pension.
The amount of your temporary disability pension is shown on your personal insurance certificate. The pension is equal to 50% of the average of the last three insured Awards, up to a maximum of CHF 75,000. If you are partially disabled, the pension is calculated on the basis of your degree of disability.
The temporary disability pension from the lump-sum plan will be paid out at the same time as the one from the annuity plan, and will cease no later than when you reach normal retirement age. Entitlement to a pension ends: if you regain the ability to work; on your death. When you reach normal retirement age, you will receive a single lump-sum payment equal to the amount of your available retirement capital instead of the temporary disability pension.
17
Disability Benefits
Disability Pensions at a Glance
Insurance against loss of earnings (90% of salary)
Salary
Continued payment of salary (100% of salary)
Event
Retirement pension from the Pension Fund (Individual pension amount, max. 70% of pensionable salary)
Temporary disability pension from the Pension Fund1 (Individual pension amount, max. 70% of pensionable salary)
AHV retirement pension (from age 64 for women)
Disability bridging pension from the Pension Fund2 Disability pension from the Swiss Federal Disability Insurance (IV)
Total of 12 months
62 / 63
64
65 Age
1
When you reach normal retirement age, this temporary disability pension is replaced by a lifetime retirement pension of the same amount.
Disabled Person's Child's Pension If you have children who meet the eligibility requirements, you will be entitled to a disabled person's child's pension from the annuity and lump-sum plans. This will equal 10% of your temporary disability pension for one child, 20% for two children, and 30% for three or more children. To qualify, children must be under 18. If the children are still in education, they may continue to draw the pension until they have completed their education, but only until they reach the age of 25.
18
2
Until you start receiving the Swiss Federal Disability Insurance (IV) pension, the Pension Fund will make you an advance on that pension by paying you a disability bridging pension equal to the anticipated amount of your future IV pension.
Disability Bridging Pension Until you start receiving the disability pension from the Swiss Federal Disability Insurance (IV), the Pension Fund will make you an advance on that pension by paying you a disability bridging pension equal to the anticipated amount of your future IV pension. To be entitled to a disability bridging pension from the Pension Fund, you must first have filed an application for a disability pension with the Swiss Federal Disability Insurance. Plan 58 At the time the Pension Fund starts to pay you a temporary disability pension, the assets you have accrued in Plan 58 will be paid out to you as a single lump sum.
Note In the event of disability you are no longer required to pay contributions to the annuity or lump-sum plans. Disabled persons are exempt from the obligation to pay contributions (waiver of contributions) for as long as they remain disabled, or until they reach normal retirement age at the latest. During the period of disability the Pension Fund will pay both your own savings contributions and those of the employer, which will be calculated on the basis of your last pensionable salary before the occurrence of the disability. The Pension Fund pays a total savings contribution of 12% to the lump-sum plan (6% employee contribution, 6% employer contribution) so that your retirement benefits continue to accrue. Savings contributions are calculated on the basis of the average of the last three insured Awards.
19
Benefits Payable in the Event of Death and Order of Beneficiaries If an active insured or a recipient of a retirement or disability pension dies, pension benefits and/or lump sums will be paid out. Make use of the options available to you by specifying in good time to whom you wish to leave the lump sum payable at death.
20
Surviving Spouse's Pension The surviving spouse will receive a Surviving spouse's pension if he or she satisfies one of the following three conditions: The surviving spouse is responsible for financially supporting one or more children. The surviving spouse is 45 or older at the time of your death, and your marriage lasted at least three years. The surviving spouse is entitled to a pension from the Swiss Federal Disability Insurance or becomes entitled to such a pension within 12 months after your death. Surviving spouses who do not satisfy any of these conditions will receive a lump-sum payment equal to three times the annual amount of the surviving spouse's pension. The following table summarizes the key information on the surviving spouse's pension upon the death of an active insured or recipient of a disability pension.
Annuity Plan
Lump-Sum Plan
Amount of pension
The surviving spouse's pension equals 66 2/3% of your insured retirement pension or the disability pension already being drawn.
The temporary surviving spouse's pension is 66 2/3% of the disability pension.
Beginning and end of entitlement
When an active insured dies, the surviving spouse receives a posthumous salary payment from the employer.
The temporary surviving spouse's pension under the lump-sum plan is paid out at the same time as the one from the annuity plan.
The Pension Fund then pays a surviving spouse's pension. Entitlement to this pension ends: on remarriage; a t the latest on the death of the person entitled to the pension. If the surviving spouse remarries, the Pension Fund pays a single lump sum equivalent to three times the annual surviving spouse's pension that is being discontinued. If the recipient of a disability pension dies, the surviving spouse's pension will be paid starting the month after the pension recipient's death.
Entitlement to this pension ends: on remarriage; on the death of the person entitled to a pension, but at the latest on the date on which the active insured or the recipient of a disability pension would have reached normal retirement age. If the surviving spouse remarries, the Pension Fund pays a single lump sum equivalent to three times the annual surviving spouse's pension that is being discontinued.
21
Benefits Payable in the Event of Death and Order of Beneficiaries The following table summarizes the key information on the surviving spouse's pension upon the death of a retiree.
Annuity Plan
Lump-Sum Plan
Amount of pension
The surviving spouse's pension is 66 2/3% of the retirement pension.
No pension is paid.
Beginning and end of entitlement
The surviving spouse's pension will be paid starting the month after the retiree's death.
No pension is paid.
Orphan's Pension Eligible children receive an orphan's pension from the annuity and lump-sum plans. This amounts to 20% of your insured retirement pension (or the retirement or disability pension already being drawn) for each child, up to a maximum of 60% in the case of three or more children. To qualify, children must be under 18. If the children are still in education, they may continue to draw the pension until they have completed their education, but only until they reach the age of 25.
Lump Sum Payable at Death in Case of Active Insured and Recipients of a Disability Pension The following table summarizes the key information on the lump sum payable at death.
Amount of the lump sum payable at death
Annuity Plan
Lump-Sum Plan
Plan 58
If an active insured dies, a lump sum payable at death equal to 50% of the pensionable annual salary will be paid out in addition to the surviving spouse's pension.
The lump sum payable at death corresponds to your available retirement capital, regardless of whether or not a surviving spouse's pension is to be paid.
If an active insured dies, the assets accrued to date are paid out as a lump sum.
If no surviving spouse's pension is paid, the lump sum payable at death will equal the vested benefits available or at least 50% of your pensionable annual salary. If a person receiving a disability pension dies, the lump sum payable at death corresponds to three times the annual pension minus any pension income already drawn. 22
No lump sum is paid on the death of a person receiving a disability pension, as the assets accrued under Plan 58 were already paid out upon initial commencement of the temporary disability pension.
Order of Beneficiaries in the Pension Fund Regulations The amounts payable at death are disbursed by the Pension Fund in accordance with the order of beneficiaries stated in the Regulations. The order is as follows:
a.
aa) the spouse; ab) the children of the deceased who are entitled to an orphan's pension; ac) natural persons who were supported to a considerable extent by the insured or the person with whom the insured had lived in a domestic partnership without interruption during the five years preceding death;
b. in the absence of beneficiaries under a.: ba) the children of the deceased who are not entitled to an orphan's pension; bb) the parents; bc) the siblings;
c. in the absence of beneficiaries under a. or b.: other legal heirs, to the exclusion of the community.
Changing the Order of Beneficiaries Stipulated in the Regulations You can change the order of beneficiaries within a specific category (e.g. under category a.), or distribute the benefits payable at death among multiple beneficiaries in the same category. Beneficiaries in a higher category, however, cannot be passed over in favor of those in a lower category. Changes to the order of beneficiaries can only be made within a specific category. Only in the absence of beneficiaries within a category can their place be taken by beneficiaries lower down the list. If you wish to change the order of beneficiaries stipulated in the Regulations, it is essential that you send the completed "Amendment to the General Order of Beneficiaries" form to the Pension Fund during your lifetime. The form can be found at www.credit-suisse.com/pensionfund. Benefits for Cohabiting Partners Pensions for cohabiting partners are not insured under the annuity insurance. As a result, your cohabiting partner will not receive a pension after your death, though he or she can be the beneficiary of a lump sum payable at death. If you wish to name your cohabiting partner as a beneficiary, the "Amendment to the General Order of Beneficiaries" form must be submitted. Enter your cohabiting partner on the form in category a., section ac). If no such entry is made on the form, we will not be able to take your cohabiting partner into consideration when paying out the lump sum payable at death. If you have entered your cohabiting partner in the appropriate section of the form, he or she will receive the lump sum payable at death provided one of the following conditions is met: You supported your cohabiting partner to a considerable extent. You were living together in a domestic partnership without interruption during the five years preceding death.
23
Purchase of Pension Benefits By purchasing additional pension benefits, you optimize your personal retirement situation while also enjoying tax privileges. Make your additional purchase by December 18 of each year at the latest for it to be tax deductible in the current tax period.
24
Opportunities to purchase additional benefits do not necessarily mean you are underinsured. What matters is the particular pension plan in which the potential for purchasing additional benefits exists.
Annuity Plan Purchases you make here will increase your insured pension benefits. If you are shown as being able to purchase additional benefits in the annuity plan, it means you will not receive the maximum possible pension benefits on retirement or in the event of disability or death. An option to purchase additional benefits in the annuity plan can be compared to a gap in pension coverage. We recommend that you check for gaps in your annuity plan and close them where appropriate. This makes sense, as you thus ensure that you receive the maximum pension benefits based on your annual salary. Reasons for purchasing additional benefits in the annuity plan The vested benefits that you transferred when you joined the Pension Fund were not sufficient to close the gap. Your vested benefits were reduced as a result of divorce or an advance withdrawal to finance home ownership. You have increased your level of employment.
Lump-Sum Plan Purchases increase your retirement capital. Purchases normally have no effect on the insured death and disability benefits.
Plan 58 Purchases will increase your assets under this plan. You may only buy into this plan if you have already exhausted your purchasing potential under the annuity plan.
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Purchase of Pension Benefits Things to Consider When Purchasing Additional Benefits In accordance with a recent ruling of the Swiss Federal Supreme Court, once you have purchased additional benefits, your entire retirement capital is subject to a three-year blocking period for lumpsum withdrawals. These include: advance withdrawal to finance home ownership; cash payment on emigrating or becoming self-employed; lump-sum withdrawal on retirement. While it is still possible to make a lump-sum withdrawal within this three-year period, the tax authority will retroactively annul the tax deductibility of the amount paid in. The three-year blocking period is especially relevant if you are approaching retirement and are planning to make a lump-sum withdrawal, or if you wish to use funds from your employee benefits insurance to acquire residential property for your own use within the next three years.
If you are considering purchasing additional benefits, you should also bear in mind the following restrictions Purchases may only be made after repaying any advance withdrawals to finance home ownership. You may only make purchases if you have no vested benefits in other vested benefits institutions. Plan 58 is used to prefinance early retirement. You may only buy into Plan 58 if you have no opportunity to purchase additional benefits under the annuity plan. If you came here from abroad and have never before been a member of a Swiss pension fund, for the first five years after you move here the maximum amount for which you may purchase benefits in any one year is 20% of your pension able salary. If you were previously self-employed and have funds in Pillar 3a, these may be taken into account when calculating the maximum possible purchase amount. You can close gaps resulting from a divorce at any time without being constrained by the applicable purchase restrictions. Payment Deadline Please make your purchase in good time so that it can be taken into account in the current tax period. If your payment reaches us after December 18, we will not be able to accept it and it will be returned to you.
Tip Consider your purchase options at an early stage, as the gap in your coverage increases each month. The later you purchase additional benefits, the larger the amount you will have to pay to close the gap. Additional purchases of Pension Fund benefits are deductible from your taxable income, regardless of which pension plan you have paid into. You can either make your purchase as a single payment or you can spread the payments over several years. Spreading the purchase amount over several years has the advantage that you can avoid moving into a higher income bracket more than once. If you have moved to Switzerland from abroad or if you earn income abroad, we recommend that you contact the tax authorities before purchasing additional pension benefits to clarify whether they would be tax deductible, or consult a tax advisor.
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Leaving the Pension Fund If you end the employment relationship, your membership in the Pension Fund also comes to an end. Payment of the Vested Benefits on Leaving the Pension Fund New pension fund
Transfer of the entire vested benefits to the new pension fund
Leaving the Pension Fund No cash payment
No new pension fund
Resident in Switzerland
Cash payment
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Transfer of the entire vested benefits to a vested benefits account or policy
Persons becoming self-employed may withdraw the entire vested benefits
Emigration to an EU/ EFTA member state
The mandatory BVG portion remains in Switzerland. The extra-mandatory amount may be withdrawn
Emigration to a non-EU/ EFTA member state
Withdrawal of the entire vested benefits is possible
You will receive the following benefits from the different pension plans when you leave the Pension Fund:
Annuity Plan
Lump-Sum Plan
Plan 58
Vested benefits in the form of the cash value of the accrued retirement pension (actuarial figure)
Vested benefits in the form of retirement capital
Vested benefits in the form of accrued assets
How the vested benefits are transferred depends on whether or not you join a new pension fund after your change of job. As a rule, the Pension Fund will transfer your vested benefits to the pension plan of your new employer. The Pension Fund will continue to cover you for the risks of disability and death until you have joined a new pension plan, but only up to one month after you leave the Pension Fund. For persons not joining a new pension fund, vested benefits will either be transferred to a vested benefits account with a bank or to a vested benefits policy with an insurer according to your instructions. Cash Payment In a few legally defined cases, vested benefits may be paid out in cash. With a cash payment, the vested benefits are transferred to a private account rather than a new pension fund or vested benefits foundation. Cash payments are subject to tax, and a cash payment requires the consent of your spouse or registered partner. You can have your vested benefits paid out in cash under the following circumstances: You become self-employed; You leave Switzerland permanently.
Tip: Check Your New Pension Situation The financing as well as the kind and scope of insured pension benefits differ from pension fund to pension fund. Changing jobs and transferring to a new pension fund can have advantages as well as disadvantages. You are therefore recommended to obtain an overview of your new pension situation as soon as possible, and to close any pension gaps, either by purchasing additional benefits from the new pension fund or by taking out private provision. Note on Leaving Switzerland Permanently The mandatory portion of the vested benefits cannot be paid out in cash if you leave Switzerland permanently to live in an EU or EFTA country where you will be subject to social security contributions. The BVG Security Fund can tell you how you will be affected by the social security regulations in the country you are moving to. Cooperation agreements have been concluded with the authorities of various EU and EFTA member states. You will find detailed information on these agreements, country fact sheets and relevant application forms at www.sfbvg.ch.
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Glossary AHV The abbreviation AHV stands for Eidgenössische Alters- und Hinterlassenenversicherung (Swiss Federal Old Age and Survivors' Insurance). AHV bridging pension A temporary pension granted by the Pension Fund between retiring and reaching the normal AHV retirement age (women: 64, men: 65). Award Discretionary variable incentive award Beneficiaries Persons eligible to receive the lump sum payable at death from the Pension Fund. BVG The abbreviation BVG stands for Bundesgesetz über die berufliche Alters-, Hinterlassenen- und Invalidenvorsorge (Swiss Federal Act on Occupational Retirement, Survivors' and Disability Pension Plans). The BVG regulates mandatory minimum benefits. BVG age The BVG age is the calendar year minus the year of birth. Cash payment A cash payment is made when vested benefits are transferred to a private account. The written consent of any spouse or registered partner is required. Coordination deduction Your annual salary is reduced by the sum already insured by the AHV/IV. This corresponds to one-third of your annual salary up to a maximum of CHF 27,840 (the maximum AHV retirement pension in 2011). Coverage ratio The coverage ratio within the meaning of Art. 44 BVV2 provides information on the extent to which the Pension Fund’s net assets are covered by the retirement assets. A coverage ratio of over 100% means that all the Pension Fund's obligations are covered by assets. Defined benefit system In a defined benefit system the type and amount of the pension benefits are stipulated in the regulations (e.g. 70% of pensionable salary), providing the basis for determining the level of contributions.
Defined contribution system A system in which the level of contributions is defined in the regulations (either as a fixed amount in Swiss francs or as a percentage of a reference value). These contributions and the interest paid on them make up the retirement capital, which serves as the basis for calculating the insured pension benefits. Disability pension, temporary A temporary pension that is paid when a person is at least 25% disabled. The temporary disability pension is payable until the recipient reaches normal retirement age at the latest. Divorce In the event of divorce, the portion of the retirement capital that accrued during the marriage is divided equally. Insurance certificate The insurance certificate issued by the Pension Fund is a statement of your insured pension benefits. IV The abbreviation IV stands for Eidgenössische Invalidenversicherung (Swiss Federal Disability Insurance). Lump-sum plan The lump-sum plan insures the cash portion of your Award that exceeds CHF 5,000. Shares and options are not insured. Pensionable salary The pensionable salary refers to the annual salary subject to AHV contributions, less the coordination deduction. Plan 58 A voluntary plan with which you can finance early retirement in advance. Purchase If it is possible for you to purchase additional benefits in the Pension Fund, you can do so by making personal payments. Retirement pension A lifetime pension paid upon retirement. The maximum retirement pension is 70% of your pensionable salary in the Pension Fund. Vested benefits Your vested benefits will fall due upon leaving the Pension Fund. The amount of vested benefits to be transferred corresponds to the assets in the three pension plans. Waiver of contributions Disabled persons are exempt from the obligation to pay contributions for as long as their disability lasts or until they reach normal retirement age at the latest.
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Further Information Do you have any questions about annuity insurance? Your Pensions Advisor will be happy to help. For contact details, please visit the website of the Pension Fund of Credit Suisse Group (Switzerland) at www.credit-suisse.com/ pensionfund.
PENSION FUND OF CREDIT SUISSE GROUP (SWITZERLAND) JPKM P.O. Box CH-8070 Zurich www.credit-suisse.com/pensionfund
JPKM 5520274 4.2011
This brochure is for information purposes only and summarizes the most important pension benefits of the annuity insurance in simplified form. Only the German version of the Regulations Governing the Annuity Insurance of the Pension Fund of Credit Suisse Group (Switzerland) is legally binding.
