Development in the 1e market
As of 1 October 2017, 1e pension plans will not only be able to transfer any profits, but the investment losses will also be borne by the insured persons. At least one low-risk investment strategy must be offered. With the abolition of the minimum guarantees, it was to be expected that new providers would get involved in the 1e market and that the prices and offers of the previous collective foundations would come under pressure.
This is demonstrated by the latest examples of Credit Suisse Collective Foundation 1e (market entry 01.01.2019) and Katharinen Pensionskasse II (market entry 01.04.2019 for external connections). The market for 1e pension plans is still small compared with the overall market, but is gaining in importance and volume. There are now 15 collective foundations on the market offering 1e pension solutions. According to the OAK Report 2018, the number of insured persons in the 1e market rose from 7,668 to 11,264 in 2017 (+ 47%).
1e pension plans give policyholders with higher incomes (> CHF 127,980) more freedom with regard to the investment strategy of their retirement assets. In such pension solutions, employees can freely choose from a maximum of ten proposed investment strategies, depending on their individual risk capacity and risk appetite. A younger employee with a long investment horizon, for example, would opt for a higher proportion of equities than an employee who is about to retire in order to minimise the risk of having to sell the shares at an unfavourable time.
The SonntagsZeitung and “Finanz und Wirtschaft”, together with the financial boutique Weibel Hess & Partner AG, have already compared the providers in the 1e market for the third time. 12 bidders were contacted with the hidden invitation to tender for a company with 6 management employees. SwissLife, Trianon Sammelstiftung and VZ Sammelstiftung have already announced in advance that they no longer wish to participate in the public market comparison. 9 collective foundations have submitted an offer. Elite Vorsorgestiftung also withdrew from the market comparison after announcement of the publication. Due to the size of the contract, Zurich Vita has waived its offer. Baloise 1e also waived its offer due to the competitive situation with Elite Vorsorgestiftung (cooperation partner). AXA (cooperation with Liberty) was unable to offer 2020 on time due to a lack of tariff fixing.
Mystery shopping shows great differences. The price differences for the risk/administration costs and the foundation fees are large. As in the previous year, Liberty 1e Flex Investstiftung has the lowest risk and administration costs, at CHF 9,448. At CHF 14,957, the difference to the second-placed Credit Suisse Collective Foundation 1e is enormous (+ 58%). In contrast to the Liberty 1e Flex Investment Foundation, however, the latter does not charge any additional volume-based foundation fees. This means that as the investment volume increases, those providers in the ranking who do not charge any foundation fees become cheaper. This model is also offered by GEMINI, Swisscanto 1e Collective Foundation and Tellco Vorsorge 1e, which have offered the highest risk and administration costs in this comparison. The Katharinen Pensionskasse II has personal and connection-related foundation fees (fixed costs). Additional volume-based asset management costs are charged to the insured on the pension assets. The assessment must also include who has to pay the foundation fees. With yourpension and PensFlex, there is freedom of choice as to whether the fees are paid by the employer or debited directly to the insured person’s custody account and thus borne by the employee.
There are also differences in the choice of investment strategies. Almost half of the collective foundations offer exclusively in-house investment strategies. Only yourpension and GEMINI offer the option of selecting both their own “standard strategies” and individual external solutions. Asset managers can be called in as required – with corresponding additional costs.
The returns on the providers’ recommended investment strategies were also compared in last year’s pension fund comparison (target: passive investment strategy with a maximum equity component of 50%). The returns in 2018 of -3.73% to -6.20% also vary widely here. In contrast to basic pension solutions, the investment opportunities (positive and negative) lie entirely with the insured person. Since 1e pension solutions do not have to guarantee statutory BVG pensions, the total return – after deduction of costs – benefits the insured person. In such solutions, therefore, there is no redistribution from the active to the retired.
1e foundations are on a growth course. The consulting and implementation of management pension solutions are complex and time-consuming. Nevertheless, many companies opt for individual provision for their management staff. They also help to recruit qualified employees and managers.
Quelle: WHP PK-Vergleich