Investment of a Pension Fund's Assets with the Employer Company

Facts

The pension fund of the Amtsersparniskasse Thun, founded in 1941, had invested 92.62% of its assets as of 31 December 2000 and 93.09% as of 31 December 2001 at the interest rate for first mortgages with the employer company of its insured members (Amtsersparniskasse Thun). The Office for Social Insurance and Foundation Supervision of the Canton of Bern determined that this one-sided investment of assets was not in compliance with the law and violated the fundamental principle of diversification. The pension fund filed a complaint against this decision.

Considerations

The Federal Supreme Court dismissed the complaint. It stated that the principles of security and appropriate risk distribution in asset investment pursuant to Art. 71 para. 1 OPA and Art. 50 para. 3 OPO 2 do not allow for any exceptions. The investment of over 90% of the assets with a single debtor, even if it is a bank, clearly violates the requirement of diversification by investment categories, regions and economic sectors. Neither the creditworthiness of the debtor nor the fact that it is the employer makes any difference.…