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Long-term view, dynamic implementation

Tellco pkFLEX is a semi-autonomous collective foundation. The risks of disability and death have been reinsured with an insurance company. The pension funds function as totally independent pension funds. They select their own investment strategies as well as their asset managers, if any. A target value fluctuation reserve is determined according to the investment strategy that is selected. This reserve must be raised within a reasonable period. Tellco prepares annual financial statements consisting of a balance sheet and operating account statement for every pension fund and calculates the funding ratio separately for each pension fund.

Generally speaking, every pension fund can suffer a funding deficiency. If the funding ratio falls below 90%, rehabilitation measures are immediately instigated. This also applies if the target value fluctuation reserve cannot be raised within a reasonable period.


When 75% of the target value fluctuation reserve has been raised, the pension fund commission decides on the interest rate for retirement assets. It should be kept in mind that 50% of the surplus must be allocated to the value fluctuation reserve until the full target has been reached. If the value fluctuation reserve amounts to less than 75% of the target reserve, the retirement assets earn interest at the minimum interest rate adopted by the Federal Council.

If the funding ratio is less than 90%, the board of trustees must immediately implement measures to rehabilitate the pension fund. These include in particular a lower or zero interest rate, the collection of rehabilitation contributions from the employer and employees, and the reduction of the conversion rate.

Termination of contract

If an affiliation contract is terminated and the funding ratio of the pension fund is less than 100%, the vested benefits are reduced by the amount of the funding deficiency (imputation principle). The mandatory retirement assets, however, may not be reduced. The available value fluctuation reserve or uncommitted funds of the pension fund are used to reduce or eliminate the deficit. If the funding ratio is 100% or more, all funds are transferred to the new employee benefits institution.


The pension funds manage their pension capital and also their pension reserves if any themselves by investing in the tried-and-tested, pre-defined investment strategies of Tellco Ltd, mixed and single funds from third-party providers as well as exchange traded funds (ETFs). Pension funds with capital available for investment from CHF 20 million are free to make direct investments. Pension funds are also free to choose their own asset managers, advisors and depositories.

© Tellco Ltd
Tellco Ltd, Bahnhofstrasse 4
P.O. Box 713, CH-6431 Schwyz
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© Tellco Ltd