National Council wants to disclose administrative costs of pension funds
Published: Wednesday, Sep 11th 2024, 13:02
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The National Council wants more transparency regarding the administrative costs of pension funds. It approved a motion to this effect on Wednesday.
The Grand Chamber voted in favor of the proposal by its Social and Health Committee (SGK-N) by 139 votes to 46. Only the FDP parliamentary group and a few members of the SVP and Center Party parliamentary groups voted against. Next up is the Council of States.
The motion was triggered by a report by the Swiss Federal Audit Office (SFAO). According to the report, cost transparency in occupational pensions is satisfactory overall. However, some of the administrative costs are distorted.
The National Council is therefore calling for the legal basis to be amended. Specifically, second-pillar pension funds should be obliged to disclose their administrative costs. In 2021, pension funds spent around CHF 7 billion on administration.
Today, awareness of administrative costs is rather low among both insurers and insured persons, said committee spokesperson Samira Marti (SP/BL). Pension fund managers in particular rarely adopt strategies to reduce their costs. "Increased cost transparency and better access to information strengthen competition."
The Federal Council, on the other hand, sees no need for action. Pension funds already have to report their administrative costs in full in their operating accounts. They would have to differentiate between the costs of general administration, asset management, marketing and advertising, brokerage and broker activities, the auditors and occupational pension experts as well as the supervisory authority.
These figures must also be made available to insured persons on request, as Social Affairs Minister Elisabeth Baume-Schneider said. A simple request to the pension fund is sufficient. Many pension funds actively communicate these figures to their insured persons or even publish their annual financial statements on the Internet.
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