How do more than 52,000 insured see
the pension model of pension fund pro?
In a positive light, month after month.
pension fund pro is a semi-autonomous collective foundation. The risks of disability and death have been reinsured with an insurance company. The retirement capital is managed dynamically but conservatively, and our portfolio contains a relatively high equity component (20% to 25%). This allows us to achieve a better performance in the long run in spite of fluctuations in the value of the investments. The process of investing the pension capital is a closed system, i.e. the employee benefit assets and the income earned on these assets remain with the foundation and benefit only the insured.
Equity market volatility can lead to an actuarial deficiency. If the funding ratio falls below 90%, restructuring measures are implemented without delay. To avoid an actuarial deficiency in the long term, surplus profits are used to raise fluctuation reserves, among others (cf. Surplus model).
In contrast to the so-called capital guarantee granted on a certain percentage of an investment by life insurance companies (based on a very limited equity component and subject to the requirement that 10% of the investment income must be passed on to the insured (legal quota)), the investment model applied by the collective foundation pension fund pro has the potential for earning a bigger return on a bigger equity component while faced with lower costs and administrative expenses.