BVK Personalvorsorge of the Canton of Zurich

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BVK Personalvorsorge of the Canton of Zurich
legal form Foundation under private law
founding 11th September 2013
Seat Zurich , Switzerland
management
  • Thomas R. Schönbächler
    (Chairman of the Management Board)
Branch Occupational pension
Website www.bvk.ch

The BVK is with 124,000 insured (as of 2019; 87,000 active insured and 37,000 pensioners), the largest pension fund of Switzerland . 60% of the customers of the approximately 460 affiliated employers are from the health, education, infrastructure, transport and administration sectors. The remaining 40% are employees of the Canton of Zurich . The BVK operates across Switzerland. Since 2017, their business activities are no longer restricted by regulations to the Canton of Zurich.

It was the first large pension fund to become an independent foundation under private law. Since January 1, 2014, the Board of Trustees, made up of an equal number of employee and employer representatives, has been the highest governing body of the BVK.

Legal bases

The legal basis is formed by the Federal Act on Occupational Old-Age, Survivors 'and Disability Pension Plans (BVG) , the Federal Act on Freedom of Movement in Occupational Old-Age, Survivors' and Disability Pension Plans (Vested Benefits Act, FZG) and the associated ordinances. The BVK regulations are also part of the legal basis.

organization

The eighteen-member board of trustees is the highest governing body of the BVK. It is made up of equal numbers, which means that an equal number of employee and employer representatives sit on the committee. The President of the Board of Trustees is the employee representative Lilo Lätzsch (secondary school teacher), and Vice President of the employer representatives Bruno Zanella (Head of Human Resources at Flughafen Zürich AG ). After half of the term of office, the Presidium automatically changes from the President to the Vice-President and vice versa. The top management body is supported by the pension committee, the investment committee, the audit and personnel committee. These committees are also composed equally; they are made up exclusively of members of the Board of Trustees. The operational business is managed by the BVK management under the chairmanship of Thomas R. Schönbächler.

history

The BVK was founded on January 1, 1926 and acted externally as an insurance fund for state personnel and later as an insurance fund for civil servants. According to the deed of foundation, its formal name was BVK Personalvorsorge des Kanton Zürich . Externally, however, it has appeared as BVK since 2014 , whereby these three letters are no longer assigned any meaning.

The BVK's coverage ratio was below 100% in the fourth year when the government council of the Canton of Zurich announced in autumn 2011 that it wanted to make a contribution to the long-term financing and restructuring of the BVK with a one-off contribution of 2 billion Swiss francs . The one-time contribution was linked to a revision of the articles of association, in which the technical interest rate (from 4% to 3.25%) and thus also the pension conversion rate were reduced. In April 2012, the Zurich Cantonal Council approved the restructuring package with just one vote against. No referendum was held against the single premium during the two-month period. The corresponding resolution of the cantonal parliament thus came into force at the beginning of 2013. With the single premium, the Canton of Zurich also compensates for decisions based on which it decided between 1994 and 2001 to improve benefits such as premium reductions and inflation allowances at the expense of the BVK. At that time, the decisions were justified, supported by the social partners and, where necessary, legitimized by a decision of the cantonal council. In the decisions, the coverage ratio was always more than 100% (exception: 1995 inflation allowance).

In autumn 2012, the Parliamentary Commission of Inquiry (PUK BVK), headed by Markus Bischoff, published its report on the corruption allegations against the former investment manager, who was also sentenced in autumn 2012 to six years' imprisonment by the Zurich district court in the first instance.

In the PUK report, the potential damage caused by the corruption scandal is roughly estimated at "a few hundred million to one and a half billion francs". In its report, the PUK also recommends that the Board of Trustees review the responsibilities after it has become independent.

The PUK report also shows that the BVK has made “significant structural changes” under the managing director since 2009 and that the pension fund has been gradually modernized. The internal control system (ICS) at BVK was expanded further in the 2012 financial year. All departments of the BVK have been reinforced. Important decisions are prepared, controlled and documented according to the four-eye principle. With the distribution of competencies between at least two employees and a consistent substitute regulation, "head monopolies" are prevented.

On January 1, 2014, the BVK became independent and transferred to a foundation under private law. It was thus politically separated from the canton. In October 2017, the BVK opened up to the Swiss pension market and adapted the legal basis in order to meet new customer needs. The connection requirement of close economic or financial ties with the Canton of Zurich, which had applied up to then, was lifted when the legal basis was adjusted: The BVK can now operate employee benefits schemes for employers from all over Switzerland. The prerequisite for new connections is that they are in the overall interest of the health fund or the insured and the affiliated employers.

In the summer of 2015, the BVK Board of Trustees decided to adapt the actuarial principles to the reality in order to ensure long-term financial security for pensions. By lowering the technical interest rate to 2%, the redistribution of around 440 million francs annually from the active insured to the pension recipients will be stopped. The BVK finances cushioning measures of around CHF 950 million for all insured persons aged 48 and over. The BVK achieved an average annual performance of 4.2% between 2015 and 2019. The performance in 2019 is 11.3%. The coverage ratio at the end of the year was shown at 100.5%. The asset management costs increased by 0.01 percentage points and are 0.15% (TER-OAK).

Web links

Individual evidence

  1. ↑ Annual report. In: BVK. Retrieved March 4, 2020 .
  2. ↑ Board of Trustees | BVK. Retrieved July 2, 2019 .
  3. ↑ BVK - key figures at a glance. In: bvk.ch. Retrieved March 4, 2020 .