Occupational pension schemes in Switzerland, also referred to as the second pension pillar, are governed by the Federal Act on Occupational Old Age, Survivors' and Invalidity Pensions (OPA). Pension schemes covered by this law are permitted to hand over all or part of the capital and risk management which they are unable or unwilling to perform themselves to private life insurers.
The Insurance Supervision Act (ISA) stipulates that FINMA is responsible for supervising private life insurers. These group life insurers provide cover especially for the pension schemes of small and medium enterprises (SMEs) by:
The transparency report on second-pillar activity published annually by FINMA aims to increase transparency of occupational pension schemes and to positively influence the conduct of private insurers.
FINMA compiles this report on the basis of figures voluntarily disclosed to it by the group life insurers. The report includes key indicators such as costs, dividend payout policy and the nature of capital investments. These indicators highlight the strengths and weaknesses of market participants and permit performance comparisons. This is beneficial for companies requiring pension coverage and their employees.