Swiss assembly: the government consults on new accounting rules for Compenswiss | New

The Swiss government has decided to launch a consultation on the introduction of new accounting rules at Compensiwss, the public institution managing the social security funds of the first pillar AVS, AI and EO.

The consultation will last until February 16, 2022, and the new rules are expected to come into force on January 1, 2025.

The Compenswiss accounting process would in future be based on International Public Sector Accounting Standards (IPSAS). The new regulations will also have an impact on Compenswiss’ investment activities.

Under the new accounting rules, Compenswiss will have to use a different method to report the investment category of “direct loans”, depending on whether the loan will be held until the end of the contract.

In addition, contributions not yet invoiced to the AVS, AI and EO funds must be recognized as an asset; overdue obligations for services not yet invoiced must be declared as debt.

This applies in particular to AI benefits, which are currently only recognized at the time of payment.

Pensions are considered a liability if a member notifies the pension scheme after reaching retirement age and it is not paid before the end of the year. The same goes for deferred old-age pensions.

Maternity benefit claims should also be counted as a liability if the benefit is not paid before the end of the year.

Interest rate maintained at 1%

The Swiss government has decided to keep the minimum interest rate paid on occupational pensions at 1% for 2022.

For the third year in a row, the interest rate remains unchanged, based on positive developments in financial markets, he said.

The minimum interest rate depends on bond yields and returns on stocks and real estate investments. It applies to pension savings accumulated on salaries in the range of CHF 21,510 (€ 22,022) to 86,040 per year, corresponding to the compulsory part of occupational pension insurance.

The yield on 10-year federal bonds remained low at -0.53% at the end of 2020 and -0.17% at the end of September 2021, the government said in the note.

The performance of stocks, bonds and real estate improved overall in 2020, albeit in a volatile environment, and remained positive in 2021.

For equities, the Swiss Performance Index was up 3.8% in 2020 and 12.9% in 2021 at the end of September. Bond performance was slightly positive in 2020, but weakened this year due to rising interest rates. The performance of real estate investments remained “very positive”, he added.

In August, the federal commission for occupational pensions, BVG-Kommission, voted in favor of an interest rate of 1%, above the 0.75% suggested last year, against a backdrop of positive momentum on the financial markets and the highest level of Pensionskassen funding since 2004, commission chairman Christine Egerszegi-Obrist told PEI.

The unions, however, demanded an interest rate of 1.25%, while the majority of employer representatives on the committee were in favor of 1%, with the exception of the Swiss employers’ association, which voted in favor of an interest of 0.4-0.5%. rate.

Switzerland commits to fight climate change in developing countries

Switzerland is funding the United Nations Adaptation Fund to help communities in developing countries vulnerable to climate change with an additional 10 million francs for the period 2022-2024.

The Adaptation Fund has committed over $ 850 million to date for climate change adaptation and resilience projects and programs.

Switzerland also pledges 8 million Swiss francs to the Coalition for Climate and Clean Air (CCAC) for the period 2022-2025, 9 million Swiss francs to the Least Developed Countries Fund for the period 2020-2022 and $ 16 million to the Climate Investment Fund. It will devote nearly 10 million Swiss francs to the High Impact Partnership for Climate Action set up by the European Bank for Reconstruction and Development.

Swiss President Guy Parmelin, who represented the country at the World Leaders’ Summit at the UN Climate Change Conference COP26 in Glasgow, urged all countries to do more to tackle global warming.

He said: “I call on all countries, especially major emitters, to aim for climate neutrality by 2050. However, this does not go far enough; these long-term goals must be translated into short-term actions. I therefore call on all countries to submit ambitious climate goals for 2030, ”he said.

Switzerland intends to halve its greenhouse gas emissions by 2030 and become climate neutral by 2050.

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