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Swiss pension plans
Pension plans are governed by the Swiss Federal Law on Occupational Retirement, Survivors’ and
Disability Pension Plans (BVG). The Group’s pension plans are administered by separate legal founda-
tions, which are funded by regular employee and company contributions. Plan participants are
insured against the financial consequences of old age, disability and death. The most senior govern-
ing body of the pension plan is the Board of Trustees. The Board of Trustees is responsible for
the investment of the plan assets. All investment decisions made by the Board of Trustees need to
be within the guidelines set out in a long term investment strategy. This strategy is based on legal
requirements, expected future contributions and expected future obligations and is reassessed at
least once a year. All governing and administration bodies have an obligation to act in the interests
of the plan participants. The final benefit is contribution-based with certain minimum guarantees.
Due to these minimum guarantees, the Swiss plans are treated as defined benefit plans for the purpos-
es of these IFRS financial statements, although they have many characteristics of defined contri-
bution plans. Retirement benefits are based on the accumulated savings capital, which can either be
drawn as a lifelong pension or as a lump sum payment. The pension is calculated by multiplying
the balance of the savings capital with the applicable conversion rate. The plan is exposed to actu-
arial risks, such as longevity risk, interest rate risk and market (investment) risk. In case of an
underfunding, the Board of Trustees is required to take the necessary measures to ensure that full
funding can be expected to be restored within a reasonable period. The measures may include
increasing employee and company contributions, lowering the interest rate on retirement account
balances or reducing prospective benefits.
US pension plans
The Group’s major defined benefit plans in the USA have been closed to new members. New employ-
ees in the USA now join defined contribution plans. The defined benefit plans are subject to the
provisions of the Employee Retirement Income Security Act of 1974 (ERISA), which defines minimum
standards such as the statutory minimum funded status.
Pension plans in other countries
Autoneum maintains defined benefit plans in Canada and in the Great Britain. The pension plan in
Great Britain has been closed for new members. New employees join a defined contribution plan.
The pension plan in Canada is open for all Canadian employees. The plan is funded, and the majority
of the contributions are paid by the employer.
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Autoneum
Financial Report 2015
Consolidated financial statements