Over 250 fund members attended AVENA’s three evening information sessions held in fall 2024, the third year in a row we have offered this event. The impressive online and in-person turnout and the numerous questions asked underscored members’ need for information on the Swiss pension system, as well as their keen interest in retirement planning.
This year, for the first time, we used a different format for each information session. The first one,  “Occupational pension Q&A night,” was our first extended question-and-answer session run both in-person and online; it proved to be a hit, with close to 120 questions asked at the event. The following session, “The ABCs of your occupational pension,” was held as a German-only online event for the first time and drew a large crowd. The final session, “Key steps in retirement planning,” was held in Lausanne in person, bringing together fund members of all ages from across Vaud Canton.

Advantages of AVENA
Some fund members had questions about how the Swiss pension system works in general: When can I take early retirement? What steps do I need to take now if I want to retire in five years? How is the conversion rate calculated, and how low can it go? What reference salary will be used to calculate my AVS pension if I change employers one year before retirement? 
Other members asked questions specific to how AVENA works, which gave panelists the opportunity to highlight AVENA’s advantages relative to other pension funds. These include the inability to rapidly reduce the conversion rate under the current regulations, and the fact that if a member dies before retirement, any voluntary contributions (less early withdrawals) will be returned to the beneficiaries.

Spotlight on phased retirement 
Fund members’ questions also pointed to their embrace of the trend toward phased retirement: Can I continue to work after I retire? In which canton does it make sense tax-wise to hold my retirement capital if I retire abroad? Can I stop working at 55? Should my retirement budget be the same at 86 as it is when I’m 66? Questions such as these showed that people in Switzerland are increasingly choosing to keep working at least part-time in retirement or to ease into retirement, whether for financial reasons or to maintain social ties.

Voluntary contributions: beyond the basics
These increasingly complex retirement situations also prompted a great many questions about voluntary contributions, also known in Switzerland as “purchasing” past years to close any gaps in pension coverage. Until what age can I continue to make voluntary contributions? How do I make voluntary contributions when I have several businesses registered in my name? How can I simulate my options for making voluntary contributions? 
Francis Bouvier, the director of AVENA, and Olivier Reymond, a retirement planning specialist at BCV, reviewed the basics of voluntary contributions in their presentations. They also provided tips and tools for fund members on understanding their pension statements, preparing a retirement budget, keeping in mind important deadlines, spreading their pension assets across several accounts in order to stagger withdrawals, and more.

“Take out your phones!”
The sessions were highly interactive, with attendees encouraged to use their mobile phones to submit anonymous questions and respond to live polls, such as “How many of you have already made a retirement budget?” Despite the differences in fund members’ individual situations, this format revealed a number of common questions and doubts – underscoring the importance of information sessions like these. See you in 2025!

Learn more
Click on the links below for a recap of the three information sessions discussed here. Answers to a number of questions asked by fund members are available here.

• Occupational pension Q&A night – 5 November 2024 | AVENA – Fondation BCV 2e pilier
• The ABCs of your occupational pension – 7 November 2024 | AVENA – Fondation BCV 2e pilier (in German only)
• Key steps in retirement planning – 3 December 2024 | Avena Fondation BCV 2e pilier
   

>Dominique Blanchard, chair of the Investment Committee

AVENA recently decided to invest some of its assets in sustainability-themed investments. Why this change in investment strategy?

I wouldn’t say it’s a change – it’s more that our strategy has evolved. Over the past few years, we’ve been taking steps towards something that we consider to be a long-term shift rather than a fleeting fad. In 2022, for instance, we commissioned an assessment of our portfolio based on environmental, social and governance (ESG) criteria as part of our approach to socially responsible investing. We were awarded an A– rating on the basis of that assessment. And with our recent decision to add sustainability-themed investments, we are going one step further and taking a more active approach to how we manage part of our portfolio. 

How did you decide how much to allocate to these investments?

The decision will affect just 3–4% of our assets under management. Our aim is to play an active role in the transition towards a more responsible and sustainable economy, while also fulfilling our duty to manage our members’ retirement savings responsibly over the long term.

Which approach will you take for these investments?

With our ESG strategy, which we developed together with BCV, our main asset manager, we have so far prioritized approaches that seek to mitigate any adverse impacts of our investments. These include approaches such as negative screening, which involves excluding investments in companies or themes deemed incompatible with certain norms or values, such as coal or pornography, and reducing the portfolio’s exposure to fossil fuels. By introducing thematic investments, we are looking to increase our positive impact. We will do this investing in companies that offer solutions that contribute to achieving the United Nations Sustainable Development Goals. This could include companies operating in areas such as renewable energy, energy efficiency, education, and poverty reduction.

Does this move affect the Fund’s overall portfolio management strategy in any way?

Our portfolio management strategy is guided by a long-term vision and a quest for stability, which helps to ensure we don’t get sidetracked by fleeting trends or fads. By allocating some of our assets to sustainability-themed investments, we aren’t changing that strategy – we’re simply moving forward with it. 

What does this mean for the Fund’s members?

With this move, our aim is to diversify our investments in order to manage risks. Diversifying in this way also helps us to make our portfolio more resilient in today’s complex environment, which we will continue to analyze. Going forward, any decision we make will be based – as it always has been – on a holistic analysis of how best to allocate our assets. Here, our aim is to deliver the returns needed to manage our Fund effectively and to ensure our members enjoy a top-notch retirement.
 

Understanding your pension certificate

What’s a pension certificate?

A pension certificate is an overview of your personal pension coverage. It includes: 

• your member information
• your salary information
• your and your employer’s contributions
• your insured benefits
• your pension savings
• your retirement benefits
• general information (withdrawal amount available to buy a home, maximum possible voluntary contribution, etc.)
  
   

Where can I get my certificate? 

Directly from your Occupational Pension Cockpit. 

In addition to getting your certificate there, you can view your member information, carry out simulations (voluntary contributions, retirement, etc.) and contact your pension fund manager directly.
If you would like further information, please do not hesitate to contact us using the form below.
 

Find out more:

Information bulletin (FR):
Télécharger la notice au format pdf

Article (FR): 
Comment décoder son certificat de prévoyance | PME

Videos (FR) :
Comment lire son certificat de prévoyance? Vidéo du 16 mars 2022
Comment lire son certificat de prévoyance? Vidéo du 19 avril 2023

Link to FAQ: 
FAQ | Avena Fondation BCV 2e pilier

AVENA’s Pension Board has decided to pay an interest rate of 3.25% on all savings capital for 2024. That’s the maximum percentage permitted by law, and it brings our funded status to an estimated 109.4%.

This level of remuneration is significantly higher than the legal minimum (1.25%), and our insured members will see the boost in their retirement savings.

The annual interest paid by the Fund is just the tip of the iceberg – it’s the most visible result of a series of measures underpinning AVENA’s ongoing solidity.

The Pension Board is unanimous in its belief that this strategy will produce better long-term results while safeguarding the Fund’s future.

Watch the video (french) and download the presentation below (english)
AVENA held an evening information session on 5 November 2024 at the Royal Savoy hotel and livestreamed it via LiveChat. Our experts covered a number of topics, including:

•    What is a voluntary contribution and how does it help me?
•    Can I use my pension assets to buy or renovate a home?
•    How does AVENA manage my pension savings? What does the fund invest in?
•    What key information is in my pension statement?
•    When do I have to decide whether I receive my retirement benefits as a lump sum or a monthly pension?

Panelists:
Francis Bouvier, director of AVENA 
Olivier Reymond, pension fund specialist at BCV

Moderator:
Alain Jeannet, former editor-in-chief of L’Hebdo
 

>Delphine Saleres-Deney, CFO, Garden Center Schilliger

Why did you want to join the Pension Board?

First off, I’m deeply invested in the idea of ensuring a stable and secure financial future for the coming generations. And I’m passionate about anything that has to do with social responsibility, sustainable development, and equitable treatment. I saw joining AVENA’s Pension Board as an opportunity to contribute directly to that mission. Drawing on my skills and my 20 years of professional experience, I hope to contribute to the strategic decisions needed to safeguard the future of retirement. I also come with some background in occupational pensions, having served as an employee representative with my previous employer’s pension fund. 

What is your role on the Board?

Besides participating in Board meetings, I sit on the Marketing and Communications Committee and the Real Estate Committee. One of my responsibilities as a Board member is to help develop and oversee the investment policy, ensuring that it’s in line with the Fund’s long-term goals. In addition, I’m involved in assessing risks and opportunities and in monitoring the overall performance of the Fund’s investments. In that capacity, I work to represent the interests of all of our members and to ensure everyone enjoys equal treatment.

What challenges is the Board facing right now?

One of our major challenges will be navigating an investment environment that’s constantly changing – identifying and seizing opportunities while also mitigating risks. In that regard, I’m particularly mindful of the policy we’ve adopted with regard to responsible investing and, in particular, to the incorporation of environmental, social, and governance (ESG) criteria in the Fund’s investments. We’ll also need to remain vigilant because of economic and regulatory challenges on the horizon that could affect AVENA’s financial stability. I’ll give you an example: real estate. We need to ensure that our real-estate portfolio is in line with our sustainability commitments and that it complies with the law – which continues to evolve.

Where do you see AVENA in ten years?

In ten years, I see AVENA as a leader in the occupational pension sector, as a pension fund known for its careful, innovative investment management as well as for its solid performance. That’s why it’s so important to implement a responsible investment strategy today – so that we can safeguard the future of tomorrow’s retirees. I’m also convinced that we will have continued to expand our sphere of influence and our impact by offering high-quality pension solutions to a growing number of members.

> Bruno Chappuis, Senior Sports Rights Manager, European Broadcasting Union (EBU)

Why did you want to join the Pension Board?
Because of my professional history in occupational pensions – for example, I worked for PPCmetrics, a consulting firm for institutional and private investors. It seemed natural to get involved in the EBU’s pension fund, which I did in 2017. When we decided to join AVENA, in September 2019, it was important to me that I contribute actively to overseeing our Fund, to bring my experience to bear, and to ensure the EBU was represented on the Pension Board.

What is your role on the Board?
After I was elected, I was encouraged to join the Marketing and Communications Committee in light of the field I work in. I took over as chair of the committee in May, when my predecessor, François Pugliese, became the president of the Vaud Chamber of Commerce and Industry (CVCI). Because I had worked for several years in occupational pensions, I also joined the Investment Committee. I also serve as deputy chair of the Pension Board, representing employees. 

What challenges is the Board facing right now?
I would point to two. The first is about communication. The occupational pension system was created by specialists for specialists, and the messaging can be very (sometimes excessively) technical. We need to inform our members about the importance of occupational pensions by communicating more clearly. That includes taking advantage of new communication channels. It’s quite surprising that only 25% of members were registered with AVENA’s secure digital platform in January 2024. We’re fortunate to have a very solid three-pillar system in Switzerland. But we really need to customize our digital communications, by adapting our messaging to individual needs. It’s like sports broadcasting: it’s not enough today to simply air a sporting event – you have to make it more interactive by adding custom content on social media. The second challenge is linked to the first: we need to bolster the public’s confidence in the pension system by transparently showing how solid it is. That means striving for more open communications.

Where do you see AVENA in ten years?
Intercantonal, digital, and multiservice. We can use this communications strategy to attract not just more members but also more resources and more professionals with a strong digital skillset. AVENA could be one of the main players in occupational pensions in French-speaking Switzerland and Switzerland as a whole. We have the opportunity to build on the strong foundation of BCV, which, as a universal bank, brings together a number of different specializations that can help us meet our members’ needs and expectations. I think that AVENA will not only provide services related to occupational pensions – I think it will become a one-stop shop for other retirement-planning services as well, such as financial planning and tax advice. To ensure our members feel involved, they will need access to the full range of those services.

>Sylvain Rochat, Director, Certified Tax Expert, Hervest Fiduciaire SA

Why did you want to join the Pension Board?
I wanted to invest my energies in our pension fund, contribute to decision-making, and have a real influence on the future of occupational pensions in our company. I also wanted to learn firsthand how a pension fund works. Even though retirement is a ways off for me – I’ll be turning 33 this year – I feel personally invested in the future of our occupational pension system. In fact, because I’m still relatively young it feels all the more pressing.

What is your role on the Board?
I sit on three committees: Governance, Real Estate, and Audit. On the Governance Committee, we make big decisions on how the Fund is run. The Real Estate Committee is involved in the planning and high-level management of our real-estate portfolio. And the Audit Committee meets with the auditor when the Fund’s accounts are reviewed. I participate in the meetings of these committees as well as those of the Pension Board.

What challenges is the Board facing right now?
We have a number of challenges ahead of us. We need to ensure that the Fund’s capital keeps generating solid returns, and we have to fine-tune the conversion rate for pensions in step with changing life expectancies while also protecting the interests of our members with less retirement savings. We also need to pay out the best possible interest rate on working members’ retirement savings while maintaining a solid coverage ratio for the Fund. That’s essential for ensuring that the retirement system continues to work, especially for the youngest members, who may be skeptical. I also recognize that we need to raise awareness among our members and those around us about topics related to retirement planning.

Where do you see AVENA in ten years?
I want to see AVENA continue to increase its membership so we can maintain the Fund’s financial health. Also, as a member of the Real Estate Committee, I hope that AVENA will have the opportunity to further build out its portfolio of income-generating real estate in order to diversify its property holdings, which, compared to more-volatile investments in the financial markets, will bolster its financial stability.

So how are we doing? In 2022, AVENA’s Pension Board decided to have our responsible investment practices evaluated to better prepare for the future. After assessing our portfolio according to environmental, social, and governance (ESG) criteria, Conser awarded us an overall score of A–. This places us above the benchmark of B, on a scale that ranges from D (poor) to A+ (very good).

Conser has developed a methodology (ESG Consensus®) that it uses to compare different portfolios and produce a broad picture of a portfolio’s sustainability. “We assess all underlying assets and the final score reflects the portfolio’s average level of sustainability. We also evaluate the portfolio’s exposure to major controversies, sensitive sectors, and climate change,” said a Conser spokesperson. For AVENA’s portfolio, Conser only analyzed stocks and bonds, which make up two thirds of the portfolio. We received a score of A for the bond component and A– for the stock component. Our direct real-estate investments are being evaluated by real-estate specialist SignaTerre.

According to the report, AVENA is above the benchmark when it comes to adhering to international standards on issues like corruption, environmental damage, and human rights. This is also the case for controversial sectors like the alcohol industry, GMOs, nuclear energy, and adult entertainment. As for the portfolio’s impact on the environment, our exposure to fossil fuels is below the benchmark, and our exposure to carbon-intensive companies and sectors – which reflects the ratio between our holdings’ emissions and revenues – sits below 12%.

These scores “show how productive discussions have been between the AVENA Pension Board and BCV, the fund manager,” said Francis Bouvier, the director of AVENA. “The report will be used to define and assess our long-term sustainability strategy.”

Continuing along this positive trajectory, AVENA intends to come up with a sustainability charter and will begin publishing a sustainability report this year, in keeping with ASIP recommendations.

At our virtual conference on December 6, we discussed the following topics:

• How does the 3-pillar system work?
• How do I decipher my occupational benefits certificate?
• What is a buy-back?
• Should I withdraw my second pillar as an annuity or as a lump sum?
• Can I use my second pillar to buy my own home?
• How much will I receive when I retire?
• How can I optimize my tax situation?

With our specialists:

Nicolas Colozier, Actuary with AVENA - Fondation BCV 2e pilier

Olivier Reymond, Pension Specialist, BCV