Angel Lumbreras attended the meeting and provided us with his report of the event.
We are sharing this report with you as it is somewhat more detailed that the official minutes. Provided only in English.
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Good evening, friends:
Jean-Francois Grau and I attended yesterday the above mentioned meeting. As you could not attend it, I would like to give you a summary of my notes as I believe that you would be interested to know how things went yesterday.
In my opinion, the meeting went well. The Committee (6 members out of total 8) was present and run through the Agenda for the meeting. The minutes of the General Meeting of May 2016, the President’s report and the Treasurer’s report were approved by all participants.
The 6 members of the Committee present proposed themselves to be re-elected and asked if someone else from the participants would like to join them. Mr. Chopard proposed himself to join the Committee. The participants approved the new Committee of the Association. Then, the new Committee will be formed by 7 members.
Patrick Schriber, Chris Newton (representing the Pension Foundation Board) and Arnold …..(DuPont Compensations Manager EMEA) attended the meeting and shared the information below plus answered several questions (I have included below the most relevants to us).
– Dow-DuPont merger is effective since August 31, 2017. They plan that the split of this entity into three new ones will be effective by mid-2019. Meanwhile, the businesses allocated to the three future cos. are currently being run as three divisions of Dow-DuPont. (a) Agricultural &Food and Nutrition, b) Performance Materials and c) Specialty Products)
– Although final decisions need to be confirmed, most likely, the Swiss Pension Fund will be assigned to the future Specialty Products entity. This entity will be the largest operation remaining in CH (Meyrin Tech center will be one of its operations). This new listed company will have Sales of approx. 21 Bio. USD, about 32.000 employees, 200 manufact. operations and 10 tech. centers.
– Upon one of my questions regarding how DuPont would transfer the employees in CH to the new Specialty Products corporation in connection with our Pension Foundation, Patrick answered that more likely than not, although it’s too early for a final decision, current active employees of the Pension Fund moving to the Specialty Corporation might remain in our current Pension Fund. If this would be confirmed, it would be a good news for us retirees, because active employees contributions to the Fund would continue in the future years.
– Chris Newton presented the following information regarding the financial situation of the Fund at 31-10-2017:
– Coverage ratio was 108.8% …………………………….. >>>>>>>>>> Goal remains to be at 124 %.
– Technical Discount Rate for above calculacion was 2.25% (Official Swiss Actuaries recommendation).
The Fund plans to decrease the discount rate to 2.00% in January 2018 . This would have a negative
impact in the Coverage ratio of approx. 7 to 8 %.
– Last 5 years average Investment Performance was 7.8%. Most likely, future performance will be lower.
– Since 2006, the Company’s additional contributions to the Fund have been 220.3Mio. CHF to maintain the viability of the Fund. If needed, the Company (Specialty Products new corporation in the future) will continue making additional contributions. However, upon questions from the participants, DISA refuses to send a letter to its retirees confirming its above commitment (this letter had been sent in the USA).
– Number of Retirees per Active Employee in the DISA Pension Fund = 2.61
As a reminder, our Pension Fund is a closed Fund since 2012 (no NEW employees are accepted in the Fund).
– TPG / RAP – Arnold informed us that a lot of work has been done since about a year ago, when they had
increased the CallHR resources dedicated to this subject to 2.5 FTE’s. He recognised that there is still delayed work to be brought up to date and they will complete it asap.
In summary, I believe that there is no inmediate concern regarding the commitment of DISA Mgmt. to continue supporting our Pension Fund. However, we must remain vigilant, specially during the next couple of years, when they will make the organizational changes (transfer of employees) and the allocation of the fuure commitments for the Fund support to the new Specialty Products corporation.
I hope the above helps you to be up to date on this important subject for us. Pls., let me know if you have any question re. my above summary.
I wish you and your families a Merry Christmas and all the best in the New Year.
Warmest regrds,
Angel