Swiss lawmakers reject variable pension payouts

first_imgSwiss pension providers are unlikely to be permitted to alter pension payouts to retirees after a committee of MPs rejected a proposal to allow flexibility around existing payments.The group of 22 politicians – known as the SGK-NR commission – narrowly voted down the proposal, making it unlikely that parliament would approve it.The motion was put forward by Green Party MP Thomas Weibel in December 2017 to help ease the mounting pressure on Pensionskassen from fixed pension payouts. The pressure has increased due to high conversion rates and low interest rates.In Switzerland pension levels are promised when a contract with a Pensionskasse is signed, meaning adding variable elements to existing pension promises is almost unprecedented. In their reasoning, the committee argued that variable pension payments would “bring great uncertainty” to members of Pensionskassen.Additionally, the committee said that introducing such a fundamental change to the second pillar could interfere with other pension reforms currently under discussion.Those who voted in favour of the motion cited the “unfair” use of active members’ accrued assets to pay existing pensioners’ benefits, as was the case with a number of Pensionskassen in Switzerland.A small number of companies have introduced a form of top-up element that can vary with time, while 1e plans for high earners also have variability for payouts – but in most cases this only applies to new members.Overall, the concept – even for new contracts – is regarded with scepticism by the Swiss pensions industry. Variable pension payments were the subject of a heated debate at a conference in Zurich organised by regional supervisor BVS. Pension funds welcome decisionAfter the vote, the Swiss pension fund association Asip welcomed the commission’s decision.“Without a minimum guarantee the reliability of the occupational pension system and people’s trust in it would be strained,” Asip warned.Rather than introducing a variable element to existing pensions, the lobby group called on Pensionskassen to “issue much more cautiously defined guarantees today to allow for possible surpluses to be shared with pensioners in the future”.Under current regulations, inflation-linked pension increases have to be granted by individual funds and do not happen automatically. Payouts can be increased but cannot be cut, even when a pension fund is in financial trouble.Lower levels of guarantees in future contracts could still prove insufficient to help Pensionskassen that are struggling with keeping promises made when interest rates were higher.Weibel has brought forward several motions over the past few years to reform the occupational pension sector, including one aimed at making infrastructure investments more attractive for Pensionskassen.This was approved by both chambers of parliament last year but has yet to make it into legislation.last_img read more

Lorraine L. Foster

first_imgThe family of Lorraine L. Foster are mourning the loss of their very beloved mother and grandmother who was called from this life on March 20, 2016 at the age of 87.  She was comforted and surrounded by her family at Arbor Grove Village of Greensburg, Indiana, as she passed away from this life into the next. She was born December 27, 1928 in Batesville, Indiana to the late Albert and Emma Lampe Goldsmith.     Lorraine married Stanley Edward Foster on June 21, 1947. They began their life together first living at the Old Central House in Napoleon, Indiana, but shortly thereafter, Stanley along with his brothers built their home in Napoleon where they lived the rest of their lives together, raising their eleven children. Stanley preceded her in death on July 12, 1993.      A devout Catholic, she loved her church, St. Maurice of Napoleon.  She loved music and was blessed with a beautiful voice! For approximately fifty five years, she served as a cantor singing songs of praises to the Lord.  She also sang at weddings and funerals. Her family stated that she loved to hear Willie Nelson and Elvis Presley sing. She could do a good rendition of “I’m All Shook Up”!      Asked what her occupation was, she would answer, “Raising my children.” Her family and grandchildren had been her life!  She will be so sadly missed. SURVIVORS:    Sons:  (7) Dennis (Janice) Foster of Nogales, AZ ; Timothy (Janet) Foster of Batesville, IN; James (Cheryl) Foster of Batesville; Doug (Pam) Foster of Greensburg, IN; Terry “Mick” Foster of Greensburg; John Paul (Lynnis) Foster of Osgood; Larry Mark (Phyllis) Foster of Greensburg. Daughters:  (4)  Diane Huening of Greensburg; Rita Foster of Greensburg;Peggy (Duane Sizemore) Murray of Osgood; Laurie Foster of NapoleonGrandchildren: 23; Great Grandchildren: 47; Great Great Grandchildren: 5She was preceded in death by six brothers (Ralph, Albert, Bob, Clifford, Paul and Earl Goldsmith) and four sisters (Dorothy Oswald, Mildred Scheney, Rita Maple and Katie Fichtner).SERVICES:Visitation: Tuesday, March 22, 2016/ Neal’s Funeral Home/ 5:00 p.m. – 8:00 p.m.Funeral: Wednesday, March 23, 2016/ St. Maurice Catholic Church of Napoleon, IN/ 10:00 a.m.Burial:  Church Cemetery, Napoleon; Memorials: Donor’s ChoiceArrangements by Neal’s Funeral Home          www.nealsfuneralhome.netlast_img read more