In light of the current situation, our office is working with a reduced number of personnel. Access by telephone is limited and cannot always be guaranteed. However, you can still contact us by e-mail. Whenever possible, please send us documents by e-mail and not in the post.

Thanks for your kind understanding! Stay healthy!

Information Livica July 2020

Financial situation 
The Corona pandemic has had a direct effect on the financial markets and consequently on the expected rate of return of pension funds. For Vorsorge RUAG, there is still no need for immediate action. Thanks to the recovery of the financial markets, the rate of return since the beginning of the year is still only -1.2%, compared with its lowest value of -6.9% on 19 March. As at the end of May, the coverage ratio is 105% (end of 2019: 106.9%).

Change in the Foundation Board
It was the objective of the Foundation Board that, from 1 July 2020, RUAG MRO Schweiz and RUAG International should be represented on it by two employers each. In order to make this possible, Daniel Fürst has announced his intention to resign from the Foundation Board as at 30 June 2020. He has been a member of the Foundation Board since 1 May 2018. 

The Board of Directors RUAG MRO Holding Ltd has appointed Michelle Mägerle of CHRO RUAG MRO Holding Ltd as his successor. She will take up this appointment on 1 July 2020.

Change of name as at 1 July 2020 – Livica Collective foundation 
This means that, with effect from 1 July 2020, Vorsorge RUAG will be known as the Livica Collective foundation. Together with the change of name, a few organisational changes will also be made which transform the previous Group Pension Fund into a collective foundation. This transformation is a response to the unbundling of RUAG in the occupational pensions sector. 

Information on the transformation will follow in a letter to all insured parties.

As a result of these organisational changes, our office will be closed from 1 to 3 July. We will be at your disposal once more from 6 July.

The coronavirus pandemic – consequences for pension funds
In order to prevent a collapse of the healthcare system, the Federal Council ordered the standstill of public life, which is having a paralysing effect on the economy.

The resulting turmoil is also having an effect on pension funds. The massive falls on the share markets let the accrued fluctuation reserves melt away in a flash. The Investment Committee has greatly intensified its monitoring and oversight of financial assets and drawn an interim conclusion:

• The investment strategy will be stuck to and rebalancing continued.
• Liquidity is guaranteed and very high.
• As things stand, the company is in a financially stable position.
• The system is not in danger, and the pensions and retirement assets are secure.
• The markets have partially recovered since February 2020.

There is no immediate need to act. As of the end of April 2020, the return is -2.0%. The coverage ratio dropped from 106.9% as of the end of 2019 to 104.8%.

The Investment Committee will continue to very closely monitor developments on the markets

The transition from a Group pension fund to a collective foundation
It is common knowledge that the Federal Council has decided to reposition and unbundle RUAG in view of its future fields of activity.

Vorsorge RUAG, which previously was a Group pension fund, therefore adapted its structure and organisation to the new RUAG Group structure and has repositioned itself as a collective foundation.

The RUAG pension fund operated under the name of Vorsorge RUAG for about 20 years. With effect from 1 July 2020, the pensioners and active insured persons will find themselves in the various affiliated pension funds of the collective foundation called Livica Collective Foundation.

An unchanged pension plan will be offered to insured parties in the new organisational units of the unbundled RUAG. As of 30 June 2020, interim financial statements will be drawn up and the pension capital and corresponding assets will be assigned to the individual affiliated pension funds. This assignment will be monitored and checked by the auditors, the occupational pension experts and the Supervisory Board for Foundations. Every affiliated pension fund will thus start on 1 July 2020 with its own balance sheet and income statement. Pensioners who started drawing old-age or spouse’s pensions on or before 1 January 2020 were already transferred to their own affiliated pension fund at the beginning of 2020. Further information will follow in the coming months in the form of a personal letter to insured persons.

The supreme body of the collective foundation is the current Foundation Board. In order to ensure a smooth transition, there will be a one-time extension of the period of office until 30 June 2021. The affiliated pension funds will be managed by the pension committees whose composition must be based on equal representation and whose members are yet to be elected.

2019 annual report and financial statements
The Foundation Board has approved the annual report and annual financial statements for 2019. The 2019 annual report with an integrated invoice can be downloaded from our website from mid-May. Anyone who requested a printed copy will also be posted the report from mid-May onwards.

Office
In light of the extraordinary current situation, our office is working with a reduced number of personnel. Access by telephone is limited and cannot always be guaranteed. However, you can still contact the office by e-mail.

Thanks for your kind understanding! Stay healthy!