Legal changes for Employer Sponsored Funds ("Personalfürsorgestiftungen" or "patronale Wohlfahrtsfonds")
The number of Employer Sponsored Funds has greatly diminished ever since the introduction of the Swiss occupational benefit plan ("BVG") back in 1985. However, there are still some 2'600 such funds in Switzerland with aggregated assets of CHF 16 billion, i.e. an average of respectable CHF 6 million per fund. With the amendment of Article 89a of the Swiss Civil Code ("ZGB"), effective as of 1 April 2016, those Employer Sponsored Funds have been liberated of the suffocating and confining pension fund legislation, which opens up new opportunities for enterprises.
On the hand, the support of a company's pension fund and personnel is improved and on the other hand new business development opportunities include restructuring, financing, management buy out, transfer of business within the family, impact upon the valuation of an associated company, etc.
At any rate, the easing of the restrictive regulation has opened up an Employer Sponsored Funds' options, but at the same time the new regulation will lead to enhanced responsibilities and possible liabilities of the Directors of such funds. How this newly gained room to manoeuver can effectively be used for the benefit of a particular company needs to be carefully explored on a case by case basis.