A modern pension scheme

In 2012, we changed from a defined-benefit to a defined-contribution pension scheme for the Personnel Pension Fund Foundation of Liechtensteinische Landesbank AG. As at 1 January 2013, the defined-contribution scheme was launched with a liquidity ratio of 105 percent. By the end of December, it stood at 107 percent and the pension plan assets amounted to over CHF 250 million. This is due to a good return on investment of 6 percent and to the moderate increase in pension payments. In 2013, the technical interest rate stood at 2.5 percent. The pension conversion rate, which converts retirement assets upon retirement at the age of 64 into a pension, stood at 5.6 percent. The accumulated capital bore interest at 3 percent.

According to an asset-liability examination the Personnel Pension Fund Foundation of LLB has a high-risk capacity and can easily manage fluctuations in assets. Accordingly, a slightly changed asset allocation has been in force since June 2013. We increased the share quota by 4.5 percent and lowered the bond quota. At the same time, we place emphasis on acting responsibly, efficiently and transparently and rely on an effective internal control system (ICS). We adapted our pension plan regulations hand in hand with the new compensation system. As of 2014, the insured annual wage will be increased and will consist of the annual income plus a target bonus. LLB is consequently able to ensure the continued existence of a financially sound and attractive pension scheme.

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