The Eighties


Adoption of the LOB under which the top level organisations of employees and employers set up the jointly administered LOB Guarantee Fund Foundation. The tasks of the LOB Guarantee Fund are to pay subsidies in respect of unfavourable age structures, to secure statutory benefits in the event of insolvency of a benefit scheme and to accept the costs incurred by the Supplemental institution in relation to the compulsory affiliation of employers.


After the top-level organisations had found it impossible to agree on a solution for the LOB Guarantee Fund, the Federal Council set up the Foundation by means of an Ordinance of 17 December (SFV 1).


On 17 May, the Foundation Board of the LOB Guarantee Fund adopted a regulation and on 16 December it empowered the Union for the implementation of the LOB Guarantee Fund to collect the resources of the Guarantee Fund. This Union consists of the Inter-Cantonal Personal Benefits Association, the Conference of Business Managers for the Insurance of Persons, the Swiss Association for Private Personal Benefits, the Union of Occupational Benefit Schemes organised in associations, the Swiss Association of Private Life Insurers, the Union of the Equalisation Fund Association and the Association of Swiss Cantonal Banks.


The Federal Council adopted the ordinance on the management of the Guarantee Fund (SFV 2).


The registered occupational benefit schemes settled contributions to the Guarantee Fund for the first time. The contribution rate was 0.2% of the remuneration coordinated under LOB. In 1987 benefits were paid out for the first time in the amount of CHF 34,215.00 in a case of insolvency.


The Swiss Supreme Court in its ruling of 27 January supported the practice of the Guarantee Fund of safeguarding benefits at the level of groups of insured but regarded the statutory basis for this as inadequate. It further held that the Guarantee Fund safeguards benefits and not contributions; it follows that no guarantee is provided for risk contributions, administrative costs, etc.