Information sheet Insurance certificate For your social security

Information sheet Insurance certificate For your social security

Making sense of your insurance certificate Insurance certificates can be more than a little baffling. This information sheet from SVE sheds some light on the subject. The Sulzer Pension Plan sends its insured members their new insurance certificates at the beginning of each year. Although the rows of numbers may appear daunting, it is worth giving them a quick check. Pension plan insurance certificates need not necessarily be a bewildering conundrum. For a better understanding please see the following example of an insurance certificate with the related information and declarations. To understand the benefits shown on your certificate, you also need to have an up-to-date copy of your pension fund s regulations. This shows, for example, how much your savings contributions are so that you can see how much your retirement assets have grown in comparison with the previous year. Anyone comparing their current income and future pension and giving some thought to the question of how they propose to live on their AHV pension and second pillar provision, would do well to keep a close watch on the progress of their retirement capital. Our certificate shows the current balance of your retirement capital. In the section at the bottom it also presents your projected benefits by the time you reach 65. If you don t think your projected pension looks sufficient, you may wish to make additional voluntary purchases. More details on this can be found on your personal insurance certificate. With our pension calculator (www.sve.ch) you can also simulate the impact of voluntary purchases on your future pension benefits. All the information you need to use the pension calculator can be found on your insurance certificate. 2

Information sheet Insurance certificate Basic Pension Fund SVE P.O. Box, 8401 Winterthur, Switzerland 2 Mr Patrick Muster Zürcherstrasse 12 8400 Winterthur Responsible for you 052 / 262 43 00 sarah.beispiel@sve.ch Sarah Beispiel E-Mail Production date 01.01.2018 Personal data 3 Date of birth Enrolment with foundation Personnel number AHV no. savings plan 00.00.0000 00.00.0000 XXXX.0000 000.0000.0000.00 basic plan 26 Company 1 4 6 8 Insurance certificate Status of your insurance on 01.01.2018 Basis Relevant annual salary Insured annual salary (IS) Monthly contribution by insured 5 Monthly contribution by company Maximum voluntary purchases 7 Maximum advance withdrawal for residential property* 10.00% 14.50% *less voluntary purchases of the last three years (BVG art. 79b) 9 11 13 15 16 48 Development of retirement capital previous year Retirement capital, status 01.01.2017 Interest 10 Retirement credit Purchases /vested benefits 12 Withdrawals Retirement capital, status 31.12.2017 14 Of which BVG share 3.00% 22.30% Current data of retirement capital Retirement capital per reference date 01.01.2018 (SVE / BVG) Retirement capital at age 50 17 Retirement capital at marriage 00.00.0000 387'036.20 CHF 98'800.00 73'480.00 612.30 887.90 113'362.60 325'034.10 Article in rules 27 6/2 6/1 8/1 8/1 9/5 30/2 359'854.55 7/1 10'795.65 16'386.00 0.00 0.00 387'036.20 192'213.80 7/3 7/2 9 30+31 7/1 / 192'213.80 325'034.10 34'744.05 7/1 30/2 28/2 Benefits In the event of a risk claim: If a claim is submitted, your risk benefits will be calculated on the basis of the average of your insured salaries for the last three years before the claim arose. 19 21 Monthly disability pension Monthly spouse's or life partner's pension 20 Monthly child's/orphan's pension One-off death lump sum 22 3'296.00 1'978.00 660.00 59'328.00 (60% of IV pension) (20% of IV pension) (150% of yearly IV pension) 15 17/18 16+19 20 At retirement (article 11): Assuming that the insured annual salary remains the same and that the retirement capital earns interest at a rate of 1 % for the current year and 2 % for the following years, you will be entitled to the following retirement benefits (retirement pension with option spouse's pension 60%): 23 25 Projected retirement capital Conversion rate 24 Monthly retirement pension age 58 519'467.60 4.01% 1'736.00 age 60 573'553.90 4.21% 2'013.00 age 61 601'411.00 4.32% 2'166.00 age 62 629'825.25 4.43% 2'326.00 age 64 688'370.00 4.67% 2'679.00 age 65 718'523.45 4.80% 2'875.00 The effective benefits will be paid out in accordance with the provisions of the rules that are valid at that time. This document replaces all earlier certificates of its kind. The conversion rate applied to the calculation of the benefits is not guaranteed and the interest rate applying to the retirement capital may be changed at any time. 3

1 Insurance certificate as of the relevant reference date. 2 our client advisor: he or she will be happy to answer all your questions concerning the benefits you can expect to receive from the Sulzer Pension Plan (SVE). 3 Your personal data such as the date you enrolled with the pension plan. Please also read Art. 2 Enrolment conditions in the regulations. 4 The full co-ordination amount is deducted from the relevant annual salary. The difference gives you your insured annual salary which form the basis for all subsequent calculations. 5 The monthly contributions are charged on the basis of the insured salary and consist of a savings contribution and a risk contribution (death and disability). The amount of the contribution rates is determined on the one hand by the age of the insured member and on the other hand on the basis of the chosen contribution scale (see Appendix 1 of the Pension Fund Regulations). 6 The employer s monthly contribution also comprises a savings contribution and a risk contribution. In this example the employer pays a savings contribution towards retirement benefits amounting to 13.2% of the employee s insured salary and a risk contribution towards disability and death benefits amounting to 1.3% of the insured salary. This results in a total monthly contribution of 14.5%. 7 An insured who is fully able to work may increase his or her retirement capital and the insured benefits by making one or more voluntary purchases. 8 Insured members may request an advance withdrawal of benefits (minimum withdrawal: CHF 20,000) to finance residential property for their own use (purchase and construction of residential property, shares in residential property or repayment of mortgages) up to three years before they become entitled to retirement benefits. 9 An individual retirement account is kept for each insured which reflects their retirement capital. 10 This interest rate is determined by the Board of Trustees. Interest is calculated on the balance of the retirement capital at the end of the previous year and is credited to the retirement capital at the end of each calendar year. 11 At the end of each calendar year, the retirement accounts of all insured aged 25 or older are credited with a retirement credit consisting of the savings contributions of the employee and the employer. 12 On the question of purchases, see also point no. 7. On joining the pension plan, the insured member must transfer in his or her vested benefits and notify the pension plan of his membership of a previous pension plan and the form of insurance cover provided by this institution. 13 Refers to early withdrawals for home ownership purposes or to the share of the retirement capital transferred to the former spouse in the event of divorce. 14 Previous year s balance of retirement capital as of 31 December of the previous year. 15 BVG share of retirement capital as of 31 December of the previous year. 16 Retirement capital per reference date, broken down in terms of total retirement capital (SVE) and share (BVG). 4

17 The insured has access to an amount equalling his/her accrued vested benefits to finance residential property. Active insured who are 50 or older may withdraw or pledge their vested benefits accrued at the age of 50, or half of their current accrued vested benefits, whichever amount is the greater. The minimum advance withdrawal is CHF 20,000, and advance withdrawals can only be made every five years. The same vested benefits are available for pledging as for early withdrawals. 18 The insured is shown the balance of his or her retirement capital at the time of marriage if the Sulzer Pension Plan is in possession of these details. 19 If an insured becomes disabled, the retirement capital is increased for the purpose of calculating the benefits. The retirement capital equals the accrued retirement capital calculated as of the date on which contribution payments end plus a supplement based on the average of the insured salaries of the past three years prior to the occurrence of the insured event. The disability pension is based on the higher retirement capital and is calculated using the conversion rate given in Appendix 1 to the SVE Pension Regulations. 20 If an insured person dies, the surviving spouse or surviving cohabiting partner is entitled to a survivor's pension, provided that when the insured event occurs he satisfy the conditions in accordance with the regulations (see Art. 17 or 18 of the regulations). The survivor's pension amounts to 60% of the insured disability pension at the time of death. Entitlement to a survivor's pension takes effect in the month following death, but in any event not before the cessation of continued salary payments of the employer. Following the death of a retirement pension recipient, the survivor's pension amounts to 60% or 100% of the current retirement pension, depending on the deferred survivor's pension option chosen before the claim to a retirement pension arose. Unlike to married persons, one condition for cohabiting partner s entitlement to a survivor s pension is that the pension plan must have been notified in writing during the insured s lifetime of the mutual support obligation by using the support contract. 21 Recipients of disability pensions are entitled to a disabled person s child s pension amounting to 20% of the current disability pension for each child who would be entitled to an orphan s pension in the event of the insured s death. If an insured dies before or after his/her retirement, each of his/her children younger than 18 receives an orphan s pension. The orphan s pension is paid until the child reaches age 18 (or if the child is still in education or training until he or she reaches age 25 at the latest). 22 If an insured or a recipient of a retirement or disability pension dies, the entitled survivors will receive a oneoff lump sum death benefit amounting to 150% of the insured or current disability pension pursuant to Art. 15. Once the insured has started drawing a retirement or disability pension, the insured lump-sum death benefit will decrease by 1/20 per month until the figure reaches zero. The lump-sum death benefit amount is subject to change as it is based on the disability pension which changes in line with the applicable interest rate and the resulting retirement credits. 23 The projected lump-sum retirement benefits are based on the assumption that the salary remains unchanged and that the retirement capital can earn interest at the specified interest rate during the current year and in the subsequent years. 24 Conversion rates in accordance with Appendix 1 of the SVE Regulations. 25 The claim to retirement benefits arises when the employment relationship ends and the employee retires, at the earliest at the age of 58. The retirement benefits are paid out in the form of a retirement pension. However, 5

all or part of the retirement capital may be drawn as a lump sum. The retirement pension is calculated on the basis of the accrued retirement capital on the retirement date and the conversion rate. Another point which needs to be taken into account is whether the insured member opts for a spouse s pension of 60% or 100%. The current conversion rates can be found in Appendix 1 to the SVE Regulations. 26 You can choose to determine the amount of your employee contributions yourself. Apart from the Basic plan, your options also include the Comfort plan or the Super plan if you wish to increase your savings contributions. The employer s savings contributions are the same for all three plans. You can choose which plan to opt for when you join the pension scheme and will have the chance to switch plan once a year on 1 July. SVE must be given written notice of your choice using the enclosed registration form by 31 May at the latest. 27 The last column lists the applicable article from the Sulzer Pension Plan Regulations. If there are any changes in the salary or other factors, such as the interest rate, the co-ordination offset etc., there will also be changes in all benefits. This is why we send you an insurance certificate every year. The certificates are usually sent out in the spring of the current year at the latest. Needless to say, you can order an insurance certificate directly from your pension advisor at any time. The actual benefits are paid according to the regulations in force. The conversion rate used to calculate the benefits is not guaranteed and the rate of interest payable on the retirement capital may be adjusted at any time. 6

Contact your customer advisor for more information. The name of the person in charge of your affairs is given in your personal insurance certificate. Visit our website: www.sve.ch This website contains interesting information on the SVE. Sulzer Pension Plan (SVE) Your customer advisor team Sulzer Vorsorgeeinrichtung Zürcherstrasse 12 Postfach 8401 Winterthur Schweiz Telefon +41 52 262 43 00 Fax +41 52 262 00 87 No legal claims can be derived from this information sheet. The current provisions of the law and the pension fund regulations are binding. 2018