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Old 01.02.2017, 00:17
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pillar 2 ringfencing

Hi All,

The Pillar 2 concept is relatively new to me, it is effectively a corporate pension plan. In the UK work pension contributions were made to a 3rd party pension provider (had various during my tenure at various companies) and assets were ringfenced from the company I was working for.

Is the same true for Swiss Pillar 2 pension schemes? Are Pillar 2 corporate pension schemes ringfenced? what happens to the assets they hold if a company goes under?
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Old 01.02.2017, 00:46
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Re: pillar 2 ringfencing

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Hi All,

The Pillar 2 concept is relatively new to me, it is effectively a corporate pension plan. In the UK work pension contributions were made to a 3rd party pension provider (had various during my tenure at various companies) and assets were ringfenced from the company I was working for.

Is the same true for Swiss Pillar 2 pension schemes? Are Pillar 2 corporate pension schemes ringfenced? what happens to the assets they hold if a company goes under?
Yes, so nothing.
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Old 01.02.2017, 01:00
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Re: pillar 2 ringfencing

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Yes, so nothing.
Thanks for this, so it's similar to the UK, good news I guess
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Old 01.02.2017, 10:43
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Re: pillar 2 ringfencing

That's rather incomplete.

Art. 57 of BVV 2 rules that if unsecured, your Pensionskasse can invest up to 5% of its assets in your employer. If secured it can be more, but whether the securities hold value if the company goes bellyup is another thing.
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Old 01.02.2017, 11:21
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Re: pillar 2 ringfencing

"Ringfenced" is a rather silly term used where people or companies are unable to control themselves and breach certain parameters that they should not.

It means absolutely nothing and is regularly broken once somebody finds a loophole.
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Old 01.02.2017, 21:02
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Re: pillar 2 ringfencing

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"Ringfenced" is a rather silly term used where people or companies are unable to control themselves and breach certain parameters that they should not.

It means absolutely nothing and is regularly broken once somebody finds a loophole.
I don't agree, in the UK, private pension contributions were sent to a pension provider and then the employee chooses an asset allocation, lifetiming options etc, the range of index tracker funds is usually wide in terms of fund providers. This is clearly ringfenced from the future of the company (s)he works at.

In Switzerland I understand the segregation is not as straightforward though.
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Old 01.02.2017, 21:03
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Re: pillar 2 ringfencing

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That's rather incomplete.

Art. 57 of BVV 2 rules that if unsecured, your Pensionskasse can invest up to 5% of its assets in your employer. If secured it can be more, but whether the securities hold value if the company goes bellyup is another thing.
Thanks for this, I guess it is what it is but in either case it's good to know that Pillar2 pension assets are not really ringfenced
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Old 02.02.2017, 08:41
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Re: pillar 2 ringfencing

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I don't agree, in the UK, private pension contributions were sent to a pension provider and then the employee chooses an asset allocation, lifetiming options etc, the range of index tracker funds is usually wide in terms of fund providers. This is clearly ringfenced from the future of the company (s)he works at.

In Switzerland I understand the segregation is not as straightforward though.
That's exactly how the 2 Swiss schemes I was a member of worked.
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