How many cadres are there in Upsc

IAS 19

The pension fund specialists at VZ VermögensZentrum have developed models with which companies can keep their provisions low and at the same time reduce the risk of underfunding their pension fund in the long term.

One of these models includes the entire pension, including statutory minimum benefits. The basic idea is to switch from collective to individual fluctuation reserves: some of the risks and opportunities from investing the extra-mandatory assets are transferred to the insured. This means that they participate much more directly in the income generated.

The credit balance of the insured receives interest in line with the market. This makes it transparent how much the pension fund generates, how much it earns, and how much it passes on to the insured. Insured persons who leave the pension fund take their assets with them along with their investment income. For companies with a high proportion of extra-mandatory provision, this becomes a defined contribution solution in the sense of IFRS and USGAAP.

Above parity savings by the employer are not fixed obligations of the pension fund, but are booked to individual value fluctuation accounts. Because underfunding is practically impossible, there is also no need for remedial measures.

A second model is based on individual investment strategies for employees with an annual salary of CHF 129,060 or more. This also enables pension obligations to be better managed.