Interview mit Gernot Scharf - trustee of the Pension Fund of F. Hoffmann-La Roche Ltd and Vice President of the Supplementary Pension Scheme
In the Pension Fund of F. Hoffmann-La Roche Ltd, employees are represented on the Board of Trustees by members of the Employees' Association and the Works Council. Differences within the Board of Trustees are rare – these are resolved in preliminary advisory working groups. Through the system of alternates and regular further training, the trustees interact as equals.
Gernot Scharf is a trustee of the Pension Fund of F. Hoffmann-La Roche Ltd and Vice President of the Supplementary Pension Scheme. The microbiologist has worked at Roche for 20 years, currently as Global Quality Manager. He has been involved in employee representation almost since joining Roche. Continuity is important to him, as it is for the company. In addition to his everincreasing professional responsibilities, he is passionate about his work as an employee representative. Within the Board of Trustees, he is a member of the working group on technical issues (Pension Fund Rules, legal adjustments). The German-Swiss dual citizen is married and is a father of two children. Mr Scharf enjoys exploring other cultures with his family and spending time in the kitchen trying out recipes.
Mr Scharf, who is considered an employee representative on the Board of Trustees?
Roche has two pension schemes: the Pension Fund and the Supplementary Pension Scheme. We have twelve trustees in the Pension Fund and eight in the Supplementary Pension Scheme. This means that there are a total of twenty trustee offices, whereby there are double mandates – as in my case. Employee representatives on the Board of Trustees may be members of one of the two employee associations. The Works Council represents the approximately 1,000 employees in the collective agreement and provides two members of the Board of Trustees; the Employees' Association, whose 6,000 members represent over 10,000 employees with individual employment contracts, provides six members. I myself, as Vice-President, am one of 16 board members of the Employees' Association.
In addition to the trustees, you also have alternates. What role do they play?
Alternates are deputy trustees. They are treated in the same way as the trustees, i.e. they receive invitations to the meetings and to information and training events. Everyone starts as an alternate. If a trustee resigns, an alternate who has been able to gain sufficient knowledge and experience in the second row and is therefore ready for the office of trustee, takes their place.
What about external trustees?
The Roche Pension Fund has no external trustees.
How can suitable, committed and young employee representatives be motivated to serve as a trustee?
As board members of the Employees' Association, we ask around about employees who might be interested in working for the Association and ultimately on the Board of Trustees. Ideally, they are already members of the Association. In the regular Association meetings we then learn how they think and act. These honorary offices require a personal commitment. So far we have always found interested people, even young people, even with an insurance or financial background. Young trustees can develop professionally and also resign. That is the way things go.
How is the election procedure structured?
There is no election to the Board of Trustees, strictly speaking. Trustees are selected in discussions between the Employees' Association and potential candidates, independently of the continued voluntary insurance for older workers. It was a matter of concern to the employer. A term of office lasts four years; there is no term limit. This leads to continuity and solid experience on the part of the trustees.
How are employees informed about the new trustees and decisions taken by the Board of Trustees?
We inform the members of the Association and all other employees via newsletter. In addition, there is a publication through the Annual Report of the Pension Fund and at the general meeting of the Employees' Association.
What happens if you can't find enough employee representatives?
That could theoretically happen, but we have yet to experience it. Much depends on the workload of employees and whether they have their line managers' support. Those who serve as employee representatives are happy to do so, despite the additional work involved and the lack of compensation – in other words, the role is entirely voluntary. The exchange with management at the Board of Trustees meeting, which takes place twice a year, is very much appreciated.
Are there conflicts of interest with the employer representatives?
There is rarely any controversy in the Board of Trustees. Technical issues are prediscussed in the Pension Fund working group, which comprises both employee and employer representatives. If there are differing views, they are discussed in depth. It is always a matter of factual discussion and, generally, a consensus is reached that the arguments from one side or the other are more valid. An example of a more intensive discussion is the new employee representatives to make this possible from the age of 55 instead of 58 as provided by law. We were able to convince the employer representatives that this can be done in a cost-neutral way for the Pension Fund. After intensive discussion, everyone ultimately agreed. Another example are the 1e plans. Some wanted them, others were sceptical. In the end, we prepared the matter extensively with external consultants in order to clarify what added value it creates for whom. Our conclusion was: No, that does not suit us yet.
How do employee representatives prepare for the meetings?
In the Pension Fund Information Circle of Employee Foundation Boards (PIKAS), we discuss current topics and Board of Trustees meetings six times a year. In the PIKAS, we have another opportunity to listen to explanations about complex topics in a better way and in understandable language. Sometimes we also bring in someone from the Pension Fund Office. In the PIKAS, everyone can freely ask or say what they might not feel comfortable saying in the Board of Trustees. The PIKAS is a space for us employees.
How do the employee representatives present their positions on the Board of Trustees?
Due to the intensive preparation in the PIKAS and in the working group, we tend to present a united view on the Board of Trustees. However, there is no compulsory voting. It may be that an employee representative has a different opinion and votes differently. Sometimes we also present demands. And this can mean reaching a "trigger point" with the employer. For example, if we request that the employer make an even greater financial commitment in order to cushion losses in benefits. Roche already provides a very decent level of support. Nevertheless, the employer's stance sometimes needs to be counterbalanced by the employees.
How do you deal with knowledge differences?
The Pension Fund Office invites us once a year to the training centre in Buonas for a training course on current topics. There is also a Roche PF basic beginners' course. Finally, each trustee is allocated a budget for training; this is financed by the employer. Many attend external training courses. PIKAS also often provides clarity on specific topics. And even in the working group, asking a supposedly simple question is nothing to be embarrassed about. We deal openly with gaps in knowledge and know that running a pension fund is a complex task and it takes time to understand it well. You can always ask questions.
How do employee representatives ensure that they decide in the interests of the employees?
As the Employees' Association, we collectively ensure that we represent the interests of the employees. For example, in salary negotiations, where the salary increases of 14,000 employees in Switzerland are negotiated. With the PF, sometimes you have to take off your employee representative hat and act in the interest of the PF. I cannot just advocate for a high interest rate for the benefit of a colleague who is about to retire, which would damage the PF. Only board members of the employee association who maintain contact with staff anyway can be considered as trustees. Everyone is anchored in their job and can talk to their work colleagues about their interests and therefore safeguard them in order to ultimately decide in the interest of the employees. However, regardless of whether they are employer or employee representatives, trustees always decide in the interests of the pension fund.
Interview: Gregor Gubser
Source: Schweizer Personalvorsorge 10-21