12  EMPLOYEE BENEFITS

Switzerland

(Swiss plans)

Retirement, death-in-service and disability benefits 

Funded

Nature of the benefits provided

The pension plans of Tecan Group Ltd., Tecan Schweiz AG, Tecan Sales Switzerland AG and Tecan Trading AG are plans with guarantee of a minimum interest credit on the savings and fixed conversion rates at retirement. Disability and death benefits are defined as a percentage of the insured salary.

Regulatory framework

The plan provides benefits based on the LPP/BVG law, which stipulates the minimum requirements of the mandatory employer-sponsored pension plan in Switzerland. In particular, annual salary up to CHF 88’200 (as from January 1, 2023) must be insured and the financing is age-dependent with contribution rates in per cent of the insured salary ranging from 7% to 18%. The conversion rate to calculate the annuity based on the accrued savings capital is 6.8% at normal retirement age (65 for men and women).

Under LPP/BVG law, the plan must be fully funded on a static basis at all times. In case of underfunding, recovery measures must be taken, such as additional financing from the employer or from the employer and employees, or reduction of benefits or a combination of both.

Specific plan rules

The saving credits for the retirement benefits are defined in percentage of the insured salary. The saving credits for the part of the annual salary between CHF 25’725 and CHF 88’200 are age-dependent and range from 8% to 19%. The saving credits for the part of the annual salary above CHF 88’200 amount to 14% for the employees and to 18% or 19% for the members of the management. The conversion rate for the mandatory part of the savings capital is 6.8% at normal retirement age. For the exceeding part of the savings capital, the conversion rate is defined by the board of trustees. 

The annual disability pension amounts to 70% of the insured salary, the annual partner’s pension to 50% of the insured salary or to 60% of the current retirement pension. In case of death before retirement an additional lump-sum of 200% of the insured salary is paid.

Governance of the plan

The companies are affiliated to the collective foundation AXA Collective BVG Foundation. The collective foundation is a separate legal entity. The foundation is responsible for the governance of the plan; the foundation’s board of trustees is composed of an equal number of representatives from the employers and employees chosen from all affiliated companies. The foundation has set up investment guidelines, defining in particular the strategic allocation with ranges.

Additionally, there are pension committees for each affiliated company composed of an equal number of representatives from the company and the employees. The pension committee is responsible for the set-up of the plan benefits.

Risks to which the plan exposes the Group

The plan provider AXA Collective BVG Foundation has reinsured the risks disability, death and longevity with AXA insurance. Therefore, the Group is only exposed to the investment risk and the risk that the AXA Collective BVG Foundation terminates the affiliation contract or increases the premiums.

Plan amendments, settlements or curtailments

In autumn 2021, the employees of the Swiss entities decided to move from the full insurance plan provided by former Swiss Life Ltd. to a partial insurance plan provided by AXA foundation. The new pension solution was effective as of January 1, 2022. The resulting past service cost of CHF 2.7 million, mainly caused by improved orphan benefits, was included in the personnel expenses of 2021.

Further past service cost of CHF 1.5 million related to the lower entry age limit of the employees (20 years instead of 25 years) was recognized in the personnel expenses of 2022.

Austria

(International plans)

Long-service leave benefits

Unfunded

Nature of the benefits provided

The severance-payments plan of Tecan Austria GmbH and Tecan Sales Austria GmbH guarantees a one-time lump sum payment, once the employee leaves the company. The plan was closed for new members at December 31, 2002. Plan participants are all employees with at least 3 years of service and an entry-date before January 1, 2003. The membership to this plan is mandatory.

Regulatory framework

The plan provides benefits according to Austrian law (AngG 23 and 23a) which stipulates benefits in case of retirement, death (50%), disability or termination of employment. Vesting is after 3 years of service, whereas all rights forfeit in the case of voluntary termination.

The level of the benefits depends on the period of service in the company and amounts to a lump-sum payment of 2 monthly salaries after 3 years of service up to 12 monthly salaries after 25 years of service. The monthly salary is defined as the twelfth part of the total annual salary of the last 12 months.

Governance of the plan

Only the company (employer) is responsible for the governance of the plan. 

Risks to which the plan exposes the Group

The plan is exposed to an inflation risk as well as to the risk of salary increases. There is no longevity risk because the payments are due latest at retirement.

Plan amendments, settlements or curtailments

There were no plan amendments, settlements or curtailments during the financial years 2021 and 2022.