Multi-employer pension fund Tellco Pensionskasse has been placed into administration by the Swiss supervisory authority Zentralschweizer BVG und Stiftungsaufsicht (ZBSA), with WTW appointed administrator of the CHF4.88bn (€5.27bn) Swiss pension fund.
Tellco said in a statement that the move was necessary due to ongoing disputes between members of the board of trustees.
The disagreements, according to the scheme, “made proper management of the pension fund impossible”.
The appointment of WTW as administrator will ensure an orderly management of the pension fund and a reliable decision-making process, Tellco said.
The global advisory, broking and solutions company is temporarily taking over responsibilities of the board of trustees of the scheme.
Tellco said WTW’s mandate includes, in particular, fulfilling the statutory responsibilities of the board; ensuring the management of the scheme; and restoring a stable and sustainable decision-making processes within the board.
Tellco stressed in its statement that the suspension of the board’s members was due to the governance of the scheme – not its current financial situation.
“For employers, members and sales partners, there will be no changes in day-to-day operations. Business continues as usual. All benefits, contributions and contractual obligations will be fulfilled as normal,” Tellco said in the statement.
The pension fund added: “There will be no changes in everyday life for the affiliated employers, the insured persons and the sales partners. Operations will continue unchanged and the usual contact persons will be available. All benefits, contributions and contractual obligations will be fulfilled as usual.”
In the first quarter, the number of members increased by 30% year-on-year, and the funding ratio stood at 106.3%.
