Update October 2021

Dear insured members

We would like to give you an update on various developments relating to the pension fund:

• The stock market development in 2021 has been quite positive so far, our return from January to September is + 5.6%. Equities contributed significantly with a return of + 14.7%. Accordingly, our financial situation is still very solid at the moment, and we currently have an estimated coverage ratio of over 120%.
• As discussed for some time, DXC has decided to consolidate all of its insured members in the DXC pension fund. They have therefore terminated their affiliation contracts with our pension fund and all insured members of DXC/Entserv will leave our fund at the end of 2021. This affects all active insured persons as well as all external members and retirees of DXC/Entserv. During the employee consultation process the DXC pension fund emphasized that the insured benefits will remain unchanged. The same applies, of course, to pensioners; here too, the pension payments are maintained at the same level. Current and future DXC/Entserv retirees can still be or become a member of the "HP Pensioner Association". This is guaranteed as long as DXC Switzerland makes a small annual contribution to the association, which is the case for the following year.
  Nothing will change for all other insured persons from HPE, Microfocus and Hemmersbach, as all affiliated employers are managed separately. The withdrawal of the DXC / Entserv insured therefore does not affect the financial situation of the other affiliations.

• The ongoing restructuring at our affiliated employers also affects our insurance structure. That is why we commissioned an asset-liability study last autumn in order to align our investments with our current obligations. One consequence of the strong increase in the number of retirees over the years, especially within the HPE affiliations, is a decreasing ability to endure fluctuations in the financial markets. The Board of Trustees has therefore decided on a new investment strategy with a lower equity allocation for 2022. Instead, we will invest more in bonds and generally reduce our investments in foreign currencies.