SWITZERLAND - The circa CHF12.3bn (us$11.5bn) Pensionskasse Novartis is discussing the closure of its defined benefit structure in favour of a defined contribution arrangement. The board of trustees expects changes to happen as of January 1, 2011, MandateWire reported.
"In the interest of securing sustainable funding for our Pension Fund, the Board of Trustees decided to review the existing pension plan concept and to modify it when indicated," the fund said.
"In this context, the Board of Trustees of the Novartis Pension Fund is in particular discussing the change from a defined benefit plan to a defined contribution plan. This review will take some time, and changes are only to be expected as of January 1st, 2011," it added.
The fund declined to make any further comment at this point in time.
The firm's Kaderkasse, an AVC scheme for manager level employees earning more than CHF220,000, is already a defined contribution fund.
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