Adjustment of current pensions
The Pension Fund Board decides yearly in December based on the financial situation of the Pension Fund whether current pensions (retirement, disability, spouse's, child's and orphan's pensions as well as supplementary pensions) are to be adjusted for inflation. We notify you about the decision either in our annual report or in an individual letter.
The Pension Fund Board took note of the provisional financial statements of 31 October 2018 at its meeting of 10 December 2018. There are no free funds and based on the expected negative performance for 2018 there will also be no free funds at the end of 2018. Furthermore the unequal treatment between pensioners and activly insureds regarding the interest payment on the saving capital has not yet been compensated for.
Accordingly, current pensions such as retirement pensions, disability pensions, spouse’s pensions, child’s pensions, orphan’s pensions and supplementary pensions will not be adjusted for the year 2019.
New Pension Fund Regulations valid from 1 January 2019
New Pension Fund Regulations apply for the Pension Fund Swiss Re with effect from 1 January 2019.
As a pensioner, you are affected only by the following two changes:
- Now, on the death of the recipient of a retirement pension or temporary disability pension, this pension continues to be paid for a further three months (previously six months) provided the recipient leaves behind a partner or orphan entitled to a pension. This remains a highly generous provision, offered by only a few other pension funds. By law, the retirement pension or temporary disability pension must be paid only for the month in which the death occurs.
- For all newly established survivors' pensions, the following reduction conditions now apply to the survivors' pension: If the spouse is more than ten years younger than the deceased insured, the calculated spouse's pension is reduced. The reduction equals 4% per full year of age difference over ten years.
The wife is 11 years and 10 months younger than her deceased husband. Their age difference is therefore one full year more than ten years, which means that her lifetime survivors' pension is reduced by 4%. The duration of the marriage does not affect the reduction.