CC merger: "Three good ones for a better one!
The three AVS compensation funds "Verom", "Horticulturists & Florists" and "Joiners" are merging into a new fund. The aim is to concentrate, simplify and accelerate what is currently being done in three separate funds. The planned merger of the three funds will make AVS monitoring for industries and companies more modern, simpler and more productive. The new "Forte" compensation fund is synonymous with fitness, social security and a better future!
The branches and occupational groups represented in the three current compensation funds are diverse: in addition to hardware & household goods, fruit & vegetable trade, fruit growers and processors, multimedia specialists and carpenters, horticulturists & florists and music teachers are also among the insured.
The three compensation funds "Verom", "Horticulturists & Florists" and "Carpenters" provide comprehensive services for AHV/IV/EO, family allowances, vocational training funds and occupational pension schemes (CP). For the past five years, the three funds have been managed by the same staff at the joint secretariat in Schlieren, under the direction of Urs Fischer. - Parallel management of three funds is tedious and complex. Merging into a single new fund offers potential savings and productivity gains. The project is on track, and the final decisions are ready. The merger is scheduled for January 1, 2022. Urs Fischer explains the ins and outs.
Mr Fischer, you currently manage three parallel funds with virtually identical services. How did this structure come about?
I was first hired as a cashier at the CC for horticulturists and florists. Then I took over the CC for carpenters. Later, the opportunity arose to integrate CC Verom into the portfolio and manage the cash desks at a common site in Schlieren. Working together at a single location has led to synergies and cost savings. Three autonomous funds, however, means three management committees, three meeting schedules, three websites, three fund reports, three general meetings, three databases, three cost allocations, three audits, etc. - Behind these three legal entities, there are also eleven founding associations and branches, each with its own social context, particularities and right to autonomy. As a service provider, we have to respect these specificities and reconcile them with our legal mandate.
"Merging the three funds into a single legal entity is the logical consequence. However, individual support for associations, their members and policyholders must remain."
But the triple management of the funds with eleven founding associations is - at least from the outside ... complex and costly!
Yes, that's right. The logical consequence is to merge the three funds into a single legal entity. However, individual monitoring of the associations, their members and policyholders must continue.
How will the new fund be organized?
Each founding association will be represented by at least one member on the caisse's 24-strong Management Board, with larger associations represented by additional members on a pro rata basis. The Board's primary tasks are legal and strategic. A 6-member committee closely monitors the secretariat and supervises the fund on behalf of the Management Board. A Compliance Officer is the direct contact for all stakeholders. He reports periodically to the fund's Management Board and may, if necessary, activate specific contacts (President, Social Insurance Office, auditing firms).
Are you still able to offer the benefits provided by
this merger?
In future, many processes will only be carried out once. This is more economical, and we can act and decide more quickly. Customer expectations are rising. Speed has always been a criterion of quality, and the pandemic emergencies have confirmed this. What's more, we want to focus our efforts on more professional competence and communication to replace complicated processes. Fewer bodies and meetings, quicker decisions, less work on process controls, reviews and configuration of software and hardware - all this will have a positive impact on administrative costs in the medium term. All expenses, in particular for the technical data meeting, will be financed from existing own funds. We see this as an investment and expect a return after three or four years. The reduction in costs will be used to benefit the companies and policyholders affiliated with us.
Should we also expect loopholes and risks?
The neutral name of the fund "CC Forte" puts the identification of the branches in the background. The name "Verom" was already neutral in this respect. All parties involved quickly got used to it. Bringing data together in a single structure is tedious and requires a great deal of care. What's more, the legal completion of a merger is always a tour de force. These processes will push us to our limits.
Who gives the final go-ahead in the various founding associations?
daters?
The body of the association that is competent to amend the Articles of Association. Depending on the size and structure of the foundation, this may be the General Meeting, the Delegates' Meeting or the Members' Meeting. Decisions taken by these bodies are binding. It is important that all eleven founding associations approve the merger.
And what majority is required for a merger decision?
For the merger to be accepted, a quorum of three quarters of the votes cast must be present. Votes for, votes against and active abstentions count as votes cast. Abstentions are counted as votes against, as they are not explicitly for. We need an explicit yes majority of three quarters of all votes cast.
Under normal circumstances, the above-mentioned bodies take decisions at their ordinary annual meetings. During the pandemic, however, these votes are organized by post or electronically. This increases the risk of voting rights not being exercised. This would lead to inactive absentees, but above all to the potential loss of votes in favor.
"It is therefore important that we have a good turnout and as few abstentions expressed as possible, as we want to be able to implement the merger through stable member consent and on the basis of convincing facts."
A person who wishes to abstain from voting so as not to influence the decision should therefore refrain from taking part in the vote...
Because every abstention actively expressed weakens the "yes" camp. So it's important that we have a good turnout and as few abstentions as possible, because we want to be able to implement the merger with stable member consent and on the basis of convincing facts.
What's the timetable?
We aim to make these decisions in the first half of 2021. The second half of the year will be used to submit them to the supervisory authority, and to continue with operational implementation. This will enable CC Forte to become operational on January 1, 2022. Once the project has been completed, the profit generated will be used for the benefit of all those involved in the new CC Forte.
So all that's left for us to do is to wish you every success for
Voting and the different processes!
Interview by Andreas Grünholz for perspective.
The three AVS compensation funds "Verom", "Horticulturists & Florists" and "Joiners" are merging into a new fund. The aim is to concentrate, simplify and accelerate what is currently being done in three separate funds. The planned merger of the three funds will make AVS monitoring for industries and companies more modern, simpler and more productive. The new "Forte" compensation fund is synonymous with fitness, social security and a better future!
The branches and occupational groups represented in the three current compensation funds are diverse: in addition to hardware & household goods, fruit & vegetable trade, fruit growers and processors, multimedia specialists and carpenters, horticulturists & florists and music teachers are also among the insured.
The three compensation funds "Verom", "Horticulturists & Florists" and "Carpenters" provide comprehensive services for AHV/IV/EO, family allowances, vocational training funds and occupational pension schemes (CP). For the past five years, the three funds have been managed by the same staff at the joint secretariat in Schlieren, under the direction of Urs Fischer. - Parallel management of three funds is tedious and complex. Merging into a single new fund offers potential savings and productivity gains. The project is on track, and the final decisions are ready. The merger is scheduled for January 1, 2022. Urs Fischer explains the ins and outs.
Mr Fischer, you currently manage three parallel funds with virtually identical services. How did this structure come about?
I was first hired as a cashier at the CC for horticulturists and florists. Then I took over the CC for carpenters. Later, the opportunity arose to integrate CC Verom into the portfolio and manage the cash desks at a common site in Schlieren. Working together at a single location has led to synergies and cost savings. Three autonomous funds, however, means three management committees, three meeting schedules, three websites, three fund reports, three general meetings, three databases, three cost allocations, three audits, etc. - Behind these three legal entities, there are also eleven founding associations and branches, each with its own social context, particularities and right to autonomy. As a service provider, we have to respect these specificities and reconcile them with our legal mandate.
"Merging the three funds into a single legal entity is the logical consequence. However, individual support for associations, their members and policyholders must remain."
But the triple management of the funds with eleven founding associations is - at least from the outside ... complex and costly!
Yes, that's right. The logical consequence is to merge the three funds into a single legal entity. However, individual monitoring of the associations, their members and policyholders must continue.
How will the new fund be organized?
Each founding association will be represented by at least one member on the caisse's 24-strong Management Board, with larger associations represented by additional members on a pro rata basis. The Board's primary tasks are legal and strategic. A 6-member committee closely monitors the secretariat and supervises the fund on behalf of the Management Board. A Compliance Officer is the direct contact for all stakeholders. He reports periodically to the fund's Management Board and may, if necessary, activate specific contacts (President, Social Insurance Office, auditing firms).
Are you still able to offer the benefits provided by
this merger?
In future, many processes will only be carried out once. This is more economical, and we can act and decide more quickly. Customer expectations are rising. Speed has always been a criterion of quality, and the pandemic emergencies have confirmed this. What's more, we want to focus our efforts on more professional competence and communication to replace complicated processes. Fewer bodies and meetings, quicker decisions, less work on process controls, reviews and configuration of software and hardware - all this will have a positive impact on administrative costs in the medium term. All expenses, in particular for the technical data meeting, will be financed from existing own funds. We see this as an investment and expect a return after three or four years. The reduction in costs will be used to benefit the companies and policyholders affiliated with us.
Should we also expect loopholes and risks?
The neutral name of the fund "CC Forte" puts the identification of the branches in the background. The name "Verom" was already neutral in this respect. All parties involved quickly got used to it. Bringing data together in a single structure is tedious and requires a great deal of care. What's more, the legal completion of a merger is always a tour de force. These processes will push us to our limits.
Who gives the final go-ahead in the various founding associations?
daters?
The body of the association that is competent to amend the Articles of Association. Depending on the size and structure of the foundation, this may be the General Meeting, the Delegates' Meeting or the Members' Meeting. Decisions taken by these bodies are binding. It is important that all eleven founding associations approve the merger.
And what majority is required for a merger decision?
For the merger to be accepted, a quorum of three quarters of the votes cast must be present. Votes for, votes against and active abstentions count as votes cast. Abstentions are counted as votes against, as they are not explicitly for. We need an explicit yes majority of three quarters of all votes cast.
Under normal circumstances, the above-mentioned bodies take decisions at their ordinary annual meetings. During the pandemic, however, these votes are organized by post or electronically. This increases the risk of voting rights not being exercised. This would lead to inactive absentees, but above all to the potential loss of votes in favor.
"It is therefore important that we have a good turnout and as few abstentions expressed as possible, as we want to be able to implement the merger through stable member consent and on the basis of convincing facts."
A person who wishes to abstain from voting so as not to influence the decision should therefore refrain from taking part in the vote...
Because every abstention actively expressed weakens the "yes" camp. So it's important that we have a good turnout and as few abstentions as possible, because we want to be able to implement the merger with stable member consent and on the basis of convincing facts.
What's the timetable?
We aim to make these decisions in the first half of 2021. The second half of the year will be used to submit them to the supervisory authority, and to continue with operational implementation. This will enable CC Forte to become operational on January 1, 2022. Once the project has been completed, the profit generated will be used for the benefit of all those involved in the new CC Forte.
So all that's left for us to do is to wish you every success for
Voting and the different processes!
Interview by Andreas Grünholz for perspective.
