Published: 20.10.09
University senate

Looking after pensions

The University senate obtained information from representatives of the Publica pension fund about the current financial situation and the options. It became apparent that a majority of the senate members preferred to use any released capital to increase reserves rather than to reduce wage deductions.

Norbert Staub
The University senate discusses how any capital that may be released by the Publica pension fund should be used. (Image: iStockphoto.com/rzdeb; Josef Kuster/ETH Zurich)
The University senate discusses how any capital that may be released by the Publica pension fund should be used. (Image: iStockphoto.com/rzdeb; Josef Kuster/ETH Zurich)

The relief could also be felt at the plenary session of the University senate: the Publica pension fund has achieved a liquidity ratio of just over 100% again after falling to around 94% due to the financial crisis. As a result, recapitalisation and the possible drastic consequences for contributors, employees and benefit drawers is not an issue at the moment. The ETH Personnel Manager Piero Cereghetti explained, however, that now was not the time to relax. He is a member of Publica's Fund Commission and thus a member of its strategic governing body. The underlying conditions remain difficult (key issues: lack of complete financing at the start of 2003, conversion to the defined contribution plan in 2008). On the one hand it is very important to now build up sufficient stabilisation reserves and to strive towards a liquidity ratio of 115%. If, however, the risk premiums can be reduced from 4 to 3%, the released capital should serve to improve payments, believes Cereghetti, as "the contribution of the insured parties to the development of Publica has been very large in recent years."

Jorge Serra, the employee representative in the joint body of the ETH company pension plan, also supported an increase in payments, although he pointed out that the ETH council, as an employer, had only paid a contribution of 10.6% due to the contribution percentages, instead of the legally stated 11% of the overall wage total. In the meantime the ETH council had declared its readiness to pay the difference. Serra believed it would be suitable, however, to increase the employer's share slightly and thereby unburden employees.

Better to have security than more money in the short term

Jorge Serra's committee colleague Oliver Deprez emphasised a different point. He pleaded for the released capital to be used to increase the reserves, because a pension fund with insufficient coverage would above all face an investment risk and would have no scope to increase payments. In the view of University senate President Jürg Dual, the key question was how important it was to the contributing parties to have more security in the future. This had to be balanced against the prospect of more disposable income in the short term. As for the University senate, their preference soon became clear: the University senate members affected – i.e. not the student members – came to an ad hoc agreement in a consultative mood with a majority of two to one, deciding to use free capital to increase reserves rather than to reduce wage deductions.

Disarm violence before it breaks out

Cookie Timmel, head of the Safety, Health and Environment (SGU) staff unit at ETH, talked about a completely different form of planning for the future. She explained that nowadays violence at schools and universities was a global problem, but the problems and conflicts which led to violence could often be disarmed with early, competent intervention. The ETH's Threat Management Team has made this its aim. The team consists of members of the Rectorate, Legal Office, Security, Communication, Psychological Counselling Centre, Human Resources and Personnel and Organisational Development. ETH members who feel threatened or hear of threats against colleagues can contact the SGU at any time (internal telephone number: 888). The SGU guarantees that each report will be dealt with quickly and confidentially.

University Subsidies Law: concerns taken on board

Jürg Dual recently had the opportunity to present ETH's serious reservations about the draft of the University Subsidies Law at a meeting with various involved parties. Amongst them was Hermann Bürgi, member of the Swiss Council of States and President of the Committee for Science, Education and Culture: "He understood our concern with regard to the associated expenses and quality assurance in the distribution of funds very well", said the HV President. It remains to be hoped that the Committee will now make amendments to the draft.

 
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