PERSONALVORSORGESTIFTUNG DER FELDSCHLÖSSCHEN-GETRÄNKEGRUPPE Annual Report. (Short Version)

Transcription

1 PERSONALVORSORGESTIFTUNG DER FELDSCHLÖSSCHEN-GETRÄNKEGRUPPE 2012 Annual Report (Short Version)

2 2012 Annual Report The buoyant trend on equity markets in 2012 further strengthened pension funds in Switzerland, which in turn increased the funding ratio. This situation also had a positive effect on the return on investments made by the Feldschlösschen-Getränkegruppe staff pension fund. The return on the entire portfolio for 2012 amounted to 6.83% (previous year 1.64%), corresponding to the return estimated by various institutes and associations. At CHF 38.9 million, net income from securities helped to offset the prior-year expense surplus of CHF 9.54 million and enabled the fluctuation reserve to be augmented by CHF 15.9 million. However, we are still far from the fluctuation reserve target of CHF 102 million. The Carlsberg Supply Company was set up as planned in The number of employees increased from 65 at the beginning of 2012 to 133 by the end of On the other hand, there was a decline in the number of insured members at Feldschlösschen Getränke AG. Overall, however, the number of insured members has increased, which had a positive impact on contributions. In 2012 the minimum BVG rate of 1.5% was applied to the retirement capital of active insured members. An expense of CHF 2.9 million was booked for the interest paid. As at 31 December 2011, the pension plan showed a slight underfunding (funding ratio 98.46%). However, a positive funding ratio of more than 100% was already recorded in the interim statements as at 31 March The positive trends continued up to year-end, resulting in a funding ratio (ratio of available plan assets to actuarial obligations) of % on 31 December The investment measures adopted by the Board of Trustees with a view to cutting costs and increasing returns were implemented in The last step, carried out in November 2012, involved transferring the mandate held by Swisscanto for foreign currency obligations to a passive mandate with Credit Suisse. This change will allow asset management costs (hidden costs) to be reduced by a further CHF 160,000 per year. As part of the structural reforms in the occupational pensions area (2nd pillar), asset management costs must be presented transparently for the first time in the financial statements for the year ended 31 December An asset management expense (direct costs) of CHF 296, is recorded in the income statement. This includes asset management costs of CHF 157, for an investment volume of CHF 370 million, Global Custodian fees, costs for investment advice and controlling, bank charges and real estate consulting costs. Due to the new regulations, pension funds are also required to present hidden costs related to investment products in the Notes to the financial statements. Hidden costs primarily relate to the real estate funds and amount to CHF 916, for an investment volume of CHF million. The structural reform and Swiss GAAP FER 26 accounting standards require transparency not only in terms of asset management costs but also in terms of administrative costs in general, which for the first time must be presented in detail in the income statement. The administrative costs presented in the income statement amount to CHF 571, for The largest position, "own administrative expenses", covers salary and social insurance costs for employees working exclusively for the pension plan, as well as IT and 2

3 office expenses, which represent an additional drain on the staff pension fund of Feldschlösschen Getränke AG. For more information on the financial statements at 31 December 2012, refer to the Notes to the Financial Statements starting on page 7. The regulations also had to be amended in line with the structural reform. The changes concern the organisation of the pension fund. The tasks of the Board of Trustees, experts on occupational pension plans, auditors and supervisory authorities are now listed in detail in the regulations. The revised regulations were submitted to the Aargau Pensions and Trusts Supervisory Authority (BVSA) in December 2012 and are available to employees on the intranet under FSGNET > Bereiche > Personal > Personalvorsorge. For insured members who are already drawing a pension, the regulations applicable on the date on which they started to draw benefits remain valid. In 2012 the Personalvorsorgestiftung der Feldschlösschen-Getränkegruppe conducted checks on pension recipients. Since the summer of 2012 the Personalvorsorgestiftung der Feldschlösschen-Getränkegruppe has had access to the register of the Central AHV Compensation Office in Geneva. Pension funds can check this register to determine whether or not AHV pensions have been paid to insured members of the staff pension plan or whether a death has been registered. This does away with the need to request a confirmation directly from pension recipients. Outlook With the structural reform, which required significant efforts on the part of pension fund managers in 2012, now in place, things should once more calm down. The cantonal supervisory authorities have been spun off by the cantonal administrations and the Federal Supervisory Commission has begun its task of overseeing and coordinating cantonal and regional supervisory authorities The Board of Trustees of the Personalvorsorgestiftung der Feldschlösschen-Getränkegruppe has already taken several steps in the interests of stabilisation. In this context, the following conversion rates apply for retirements over the next few years (retirement pensions already being paid out are not affected): 6.7% from 1 January % from 1 January % from 1 January 2015 However, these measures will not be enough to achieve the required level of stabilisation for our pension plan in future. According to actuarial calculations made by occupational pension plan experts based on current calculation criteria (current life expectancy, constant lower yield on assets in the past and future), the conversion rate of 6.5% from 2015 is still too high. The Board of Trustees is aware that a further reduction in the conversion rate is unavoidable. At the same time, however, measures will be launched to ensure that future pensioners do not suffer any major disadvantages. The Board of Trustees will make concrete decisions in this regard in the first half of Information will be sent out to insured members once these decisions have been reached. 3

4 Staff changes Following the departure from Feldschlösschen Getränke AG of Alexandre Clerc on 30 June 2012, Piotr M. Majchrzak took over his tasks on the Board of Trustees and Investment Committee in the autumn of Piotr M. Majchrzak left Feldschlösschen Getränke AG at the beginning of 2013, necessitating yet another change on the pension plan s Board of Trustees and Investment Committee. Claude Kirschner, successor to Piotr M. Majchrzak, CFO of Feldschlösschen Getränke AG, will now sit on the Board of Trustees as an employer representative and also take over as Chairman of the Investment Committee. Rudolf Hasler, a long-serving member of the Investment Committee, is retiring and will be succeeded by René Steiner. We should like to take this opportunity to extend our warmest thanks and appreciation to the outgoing members of the Board of Trustees and Investment Committee for their valuable services in the past, and wish the two newly appointed colleagues every success and satisfaction in their positions. Rheinfelden, May 2013 Personalvorsorgestiftung der Feldschlösschen-Getränkegruppe 4

5 Balance Sheet CHF CHF ASSETS Investments 569'113' '056' Cash and cash equivalents 39'180' '328' Receivables 1'965' '681' Employers' current account 4'834' '200' Swiss Life current account 1'956' '931' Securities 521'176' '914' Prepayments and accrued income Assets from insurance contracts 69'319' '484' Total 638'433' '542' LIABILITIES Liabilities 3'198' '550' Termination benefits and pensions 3'198' '550' Accrued liabilities and deferred income 797' ' Non-actuarial reserve 1'206' '599' Insurance capital and actuarial reserves 617'371' '982' Retirement savings capital of active insureds 200'653' '984' Retirement savings capital of pensioners 390'879' '015' Actuarial reserves 25'837' '982' Fluctuation reserve 15'859' Noncommitted funds '540' At start of period -9'540' Income/expense surplus 9'540' '540' Total 638'433' '542'

6 Income statement CHF CHF Ordinary and other contributions and transfer-ins 24'170' '850' Employees' contributions 8'724' '773' Employers' contributions 12'535' '165' One-time payments and purchase amounts 2'909' '911' Entry lump sum transfers 6'226' '586' Termination benefit transfers 6'018' '066' Payments for early withdrawal home ownership/divorce 208' ' Inflow from contributions and entry lump-sum transfers 30'396' '437' Regulatory benefits -37'664' '227' Retirement pensions -22'494' '602' Survivors' pensions -8'139' '146' Disability pensions -2'921' '214' Lump-sum payments on retirement -3'819' '563' Lump-sum payments on death -289' ' Termination benefits -10'622' '144' Termination benefits on leaving -9'693' '572' Withdrawals for home ownership/divorce -928' '572' Outflow for benefits and withdrawals -48'286' '372' Increase/Decrease of insurance capital, actuarial reserves and contribution reserves -2'553' '274' Reversal of insurance capital for active members 5'245' '322' Reversal/formation of insurance capital, pensioners 3'135' '376' Change in assets from insurance contracts -6'164' '439' Formation/reversal of actuarial reserves -1'855' '098' Interest on savings capital -2'915' '879' Income from insurance benefits 7'808' '853' Insurance benefits 7'806' '073' Surplus from insurances 2' ' Insurance expense -98' ' Contributions to Security Fund -98' ' Net result from insurance activites -12'734' '452' Net return on assets 38'675' '846' Interest income 73' ' Interest expense, vested benefits and bridging pensions -56' ' Income Swiss Life 13' ' Income from reals estate 11' '881' Revaluation of real estate ' Net income from securities 38'930' '174' Administrative expense for assets -296' ' Other income 30' ' Other earnings 30' ' Administrative expense -571' ' Own administrative costs -371' ' Auditors -34' ' Occupational pension plan experts -65' ' Supervisory authorities -2' ' Legal advice, other consulting services and external IT services -14' ' Fees, levies, contributions -3' ' Miscellaneous expense -79' ' Result before recognition/reversal of fluctuation reserve 25'399' '214' Increase/decrease of fluctuation reserve -15'859' '674' Income/expense surplus 9'540' '540'

7 Notes to 2012 Financial Statements Legal form and purpose The purpose of the pension fund is to provide an occupational pension plan under the terms of the BVG and its implementation provisions, in order to insure employees of Feldschlösschen Getränke AG and companies which have close economic or financial ties to it and are affiliated to the pension fund, as well as their family and survivors, against the economic consequences of old age, death and disability. The pension fund can provide benefits beyond the minimum benefits defined by the BVG, including support benefits in emergencies such as illness, accident and loss of employment. The fund complies with the obligations of the BVG and is entered in the Occupational Pension Scheme Register and Supervisory Authority of the Canton of Aargau under Number Affiliated employers Active members Feldschlösschen Getränke AG 1,231 1,282 Carlsberg Group Procurement AG Delegate employees 2 3 Total 1,366 1,349 Effective 1 January 2010, an affiliation agreement exists with Carlsberg Group Procurement AG. Membership Active members Men 1,114 1,093 Women Total 1,366 1,349 Of which insured under the Plus plan Pension recipients Old age pension recipients Disability pension recipients Widows and widowers Orphans / children s pensions Total 1,698 1,734 7

8 Pension plan The pension plan is based on a defined contribution scheme for retirement provisions. The fund offers two plans for retirement provisions (Basic plan and Plus plan). Under the Basic plan, the employee pays retirement contributions of 40% and the employer 60%. Under the Plus plan, the employee's and employer's contributions are the same (50/50). Disability and death benefits (risk provision) are defined as a percentage of the insured salary (defined benefit scheme). The contributions are financed 40% by the insured member and 60% by the employer. Actuarial risks / risk coverage As an autonomous pension fund, the Personalvorsorgestiftung der Feldschlösschen-Getränkegruppe bears the risk itself for the regulatory benefits of the risk provision (disability and death) and retirement provisions. Insurance contracts Swiss Life pension agreement Part of the pension stock from some former pension funds is still fully reinsured with Swiss Life. The fund is the policyholder and pays the pension to pensioners on a monthly basis. Pensioners have no direct claims on Swiss Life. The corresponding repurchase value (assets from insurance contracts) is CHF 69.3 million. Actuarial principles The regulatory principles and calculations for the actuarial balance sheet are based on the actuarial principles set forth in the LOB 2010 / PT The technical rate of interest is 3%. To provide for the increase in life expectancy and other anticipated changes, a provision for changes in principles was recognised. Since the Personalvorsorgestiftung der Feldschlösschen-Getränkegruppe bears the risk relating to an excessively high actuarial conversion rate, a conversion rate provision was recognised. The reductions in the conversion rate from 2013, in line with the Board of Trustees' decision, are already factored into the calculation. 8

9 Since the foundation itself bears the actuarial risks in the event of death and invalidity, a risk fluctuation fund must be managed to offset actuarial fluctuations Changes in principles 3,852,961 1,943,333 Conversion rate 10,663,607 11,975,726 Risk fluctuation fund 11,321,224 10,063,586 Total technical provisions 25,837,792 23,982,645 Funding ratio pursuant to Art. 44 BVV2 Mr Stephan Gerber, an actuarial expert with ABCON AG, conducts an annual review under the terms of Art. 52e Para. 1.a BVG. The review of the year ended 31 December 2012 produced the following findings: The actuarial balance sheet at 31 December 2012 shows an actuarial surplus of CHF 15,859,553. The funding ratio is 102.6%. The Personalvorsorgestiftung der Feldschlösschen-Getränkegruppe has no underfunding within the meaning of Art. 44 BVV Required retirement capital and technical provisions 617,371, ,982,179 Retirement capital and technical provisions 617,371, ,982,179 Fluctuation reserve 15,859,553 0 Pension fund capital, noncommitted funds 0-9,540,108 Funds available to cover regulatory obligations 633,230, ,442,071 Funding ratio 102.6% 98.5% 9

10 Accounting and valuation principles Bookkeeping, balancing of accounts and valuation complies with the provisions of the Swiss Code of Obligations and the BVG. The annual statements consisting of the balance sheet, income statement and notes provide a true and fair view of the financial situation as required by law. The applied accounting principles comply with the Swiss GAAP AAR 26 accounting standard which among other things require statements to be drawn up at market values and require no other reserves apart from those technically necessary. Noncommitted funds may be reported only when all reserves in the required amount have been augmented. All assets are measured at fair value (market value) on the balance sheet date, based on the rates provided by the depositaries. The provisions of Art. 48 BVV2 and Swiss GAAP FER 26.3 also apply. Fluctuation reserve The target for the fluctuation reserve is defined by the external investment expert in the course of a risk capability audit. The Board of Trustees generally grants the mandate every three years. A further audit is conducted if the investment strategy is amended. An audit was conducted as at 31 December For current asset investments this calculation results in a target fluctuation reserve of 16.5% of the tied-up retirement capital for a time horizon of one year. This corresponds to CHF 102 million. For a time horizon of two years, the reserve amounts to 25.5% of the tiedup retirement capital or a target amount of CHF million Fluctuation reserve at Addition / withdrawal 15,859,553-9,674,494 Fluctuation reserve acc. to balance sheet 15,859,553 0 Target fluctuation reserve 102,000, ,000,000 Reserve deficit - 86,140, ,000,000 Investment strategy The Board of Trustees defines the investment guidelines drawing on the services of PPCmetrics AG, Zürich, as consultant. The investment strategy is influenced by risk capability, demographics and the projected outflow of liquidity. At the end of the reporting year, the fund's own investment strategy had been kept within the defined bands in all investment categories. 10

11 Presentation of asset investments by investment category Portfolio Derivati ves Total Portfolio Bands 2 (TCHF) (TCHF) (TCHF) (%) Min. / max Liquidity 1 47,937 47, % 0.0% 10.0% Bonds CHF 3 228, , % 35.0% 60.0% Foreign currency bonds (hedged) 39,916 39, % 2.5% 7.5% Equities CHF 55,460 55, % 5.0% 9.0% Equities foreign 94,716 94, % 10.0% 16.0% Equities Emerging Markets 20,777 20, % 0.0% 5.0% Real estate CH 150, , % 15.0% 25.0% Total 638, , % 1 Including receivables and accruals 2 As per investment strategy 3 Including assets from insurance agreements Performance of total assets Total assets at start of FY 616,542, ,287,795 Total assets at end of FY 638,433, ,542,017 Average assets (unweighted) 627,487, ,414,906 Net income from asset investments 38,675,028 5,846,078 Performance relative to total assets 6.2% 0.9% 11

12 Organs Foundation boards Employer representatives Employee representatives Patrik Füeg, Chairman Roland Büttiker Thomas Metzger Alexandre Clerc (until ) Piotr M. Majchrzak (from ) Bruno Born Ronald Fürer Priska Gautschi Walter Heusser Investment Committee Alexandre Clerc, Chair (until ) Piotr M. Majchrzak, Chair (from ) Patrik Füeg Rudolf Hasler Dieter Neuschwander Dr. Dominique Ammann, PPCmetrics AG, externer Berater Investment controlling / reporting Asset management Global Custodian Asset managers PPCmetrics AG, Badenerstrasse 6, 8021 Zurich Credit Suisse, Zurich Credit Suisse Asset Management, Swiss bonds Swisscanto, foreign currency bonds (until ) Credit Suisse Asset Management, foreign currency bonds (from ) Credit Suisse Asset Management, Swiss equities Credit Suisse Asset Management, foreign equities Credit Suisse Asset Management, equities Emerging Markets Real estate management Livit AG, Altstetterstrasse 124, 8048 Zurich (until ) Adminsitration Auditors Susanne Baumberger, Head of Administration Barbara Wyss, Administration Petra Schwald, Restart GmbH, Fund Accounting Support Ernst & Young AG, Belpstrasse 23, 3001 Bern Actuarial expert Stephan Gerber, ABCON AG, Zentweg 13, 3000 Bern 15 Supervisory body Occupational Pension Scheme Register and Supervisory Authority Canton Aargau (BVSA) 12

13 Actuarial audit The actuarial audit is conducted by actuarial experts as at the end of each calendar year i.e. on the balance sheet date. The actuarial expert, Mr Stephan Gerber, ABCON AG, Berne, issued the report on the actuarial balance sheet as at 31 December 2012 on 7 March 2013 and found that the Personalvorsorgestiftung der Feldschlösschen-Getränkegruppe provided assurance on the balance sheet date that it was able to meet its actuarial obligations. The Personalvorsorgestiftung der Feldschlösschen-Getränkegruppe has no underfunding within the meaning of Art. 44 BVV2. Report of the Auditors Ernst & Young AG have conducted an audit of the financial statements, overall management, investment management and individual retirement accounts of the Personalvorsorgestiftung der Feldschlösschen- Getränkegruppe for the year ended 31 December In their opinion, these are in compliance with Swiss law, the Deed of Foundation and the Regulations. Ernst & Young AG recommend that the financial statements be approved. Further information is available from: Susanne Baumberger Personalvorsorgestiftung der Feldschlösschen-Getränkegruppe 4310 Rheinfelden Tel 058/ / susanne.baumberger@fgg.ch 13