March 15, 2023
Motion "Secure pensions": Missed opportunity to strengthen the BVG

The Council of States has rejected the motion "Secure pensions thanks to comprehensively competent management of pension fund assets". It has thus missed an opportunity to professionalize occupational pension provision. AMAS continues to advocate measures to strengthen the 3rd contributor - i.e. the investment return - in occupational pension provision.

Pension fund assets are the largest saved assets for many Swiss people. Therefore, the boards of trustees, who are responsible for the main investment decisions, have an enormously high fiduciary responsibility. It is therefore imperative that these decision-makers have the appropriate investment knowledge.
The motion was aimed at three important adjustments to strengthen the fitness of Swiss pension funds: Improving investment competence in the (Art. 33 BVV 2), ensuring comprehensive risk management (Art. 50) and abolishing category limits to better reflect different risk structures (Art. 55 BVV2).

The Swiss pension fund system urgently needs modernisation in the central areas of investment competence and risk management in order to better exploit the return potential in the individual pension funds. For some time now, the investment return on Swiss pension fund assets, the so-called 3rd contributor, has contributed more to asset growth than employee and employer contributions. In concrete terms, the 3rd contributor has contributed an average of around CHF 30 billion per year (i.e. a cumulative CHF 450 billion) to pension fund asset growth over the past 15 years. The 3rd contributor is a supporting pillar of occupational pension provision with considerable potential. Implementing the motion would have made a significant contribution to further strengthening the pension funds. A comprehensive professionalisation of the investment management of pension fund assets has a positive effect on the exploitation of existing return potential, taking into account the risk capacity. In addition, increased investment competence in the boards of trustees also has an effect on the cost efficiency of investment management. This also has a positive effect on the net return on investment assets.

For AMAS, strengthening Swiss pension funds and individual pension provision through Pillar 3a remains a strategic priority. The association will continue to advocate strengthening the 3rd contributor and thus the occupational benefit scheme.