News from the Board of Trustees


ALSTOM Switzerland Pension Fund (PF) / Supplementary Insurance Plan (SIP): News from the Board of Trustees, 20 November 2014

Current performance

In October, the Pension Fund generated a positive return on investments of 0.99%, while the Supplementary Insurance Plan achieved 0.93%. The accumulated results from January to October 2014 have thus stabilised at excellent levels (PF = 7.14%; SIP = 7.00%).

2015 interest rates / increase in pensions

For the year 2015, the Federal Council has set a BVG minimum interest rate of 1.75% on savings capitals in the 2nd pillar. Thanks to the positive performance and the excellent coverage ratio achieved by the PF, the Board of Trustees has resolved to apply a 2.25% interest rate on savings capitals in 2015. The 2015 interest rate at the SIP has been set at 1.75%.

In the absence of any price rises, pensions will not be increased as per 1 January 2015.

Reduction of the conversion rate

Rising life expectancy and consistently low interest rates on the capital markets are placing increasing pressure on the conversion rate. The Board of Trustees has therefore resolved on a further reduction of the conversion rate.

The conversion rate in 2020 has been set at 5.7% (PF and SIP). The rate will continue to be set 5 years in advance on a rolling basis. A further reduction after 2020 is likely.

Changes on the Board of Trustees

Ferdinand Schulz is leaving the Board of Trustees of the PF and the SIP. He is expected to be succeeded by Peter Rosa.

Amendment of the Rules

The Rules have been amended due to new statutory provisions. The amendment was triggered by the adoption of the “Minder Initiative”.

Strategic alliance between GE and Alstom

Since the exploratory meeting between Alstom and GE representatives which focused on the mutual presentation of the various pension funds, no further talks regarding the future of the pension funds have taken place.

We shall inform you of any further developments as they arise.

The next meeting of the Board of Trustees will take place on 9 April 2015.