Switzerland: Pensions and Investment News and Analysis
The country’s direct democracy has a lot to say about pensions in what is Europe’s third-largest pension market. A March 2024 referendum backed a higher state pension – the only issue is financing the hike, a problem the government is currently grappling with. A referendum on 22 September 2024 centres on a proposal to boost workplace pensions by maintaining benefits and protecting lower paid and part-time workers. It will lower pension accrual and increase contributions. The central motion has been backed by government, parliament, employers and the pension association ASIP, but not by unions.
Pension Funds in Switzerland - Country Report
Switzerland country report 2024: The trouble with Swiss second-pillar pension reform
Attempts to reform occupational pensions continue to fail, risking undermining public trust. But pension funds have already been making their own pragmatic changes
TOP SWISS PENSION FUNDS 2024
Pension fund/entity | Assets (€’000)
- Compenswiss/Swiss Federal Social Security Funds | 45,603,811
- PUBLICA | 43,640,320
- Kanton Zürich (BVK) | 42,843,506
- UBS Pensionskasse | 30,635,160
- Migros (MPK) | 30,597,045
©IPE Research; View the Top 1000 European Pensions Funds 2024 for a comprehensive market overview
Swiss corporate schemes under stress while risk of persistent low interest rates returns
Corporate schemes’ assets went up by 1.5%, partially offsetting increasing liabilities, but funding ratios fell to 120.9% in December 2024, from 121.1% in September 2024
Profond’s returns climb to 9.4%, funding ratio to 110% in 2024
Board of trustees decides to apply interest rate of 8% on retirement savings
Swiss pension funds see boost in returns, funding ratios in 2024
Consultancy PPCmetrics says schemes saw returns of 8.7% in 2024, while funding ratios reached a 115.5% level
Faire Vorsorge suggests second pillar reform to end ‘discrimination’ of low earners
The Swiss think tank’s proposal is a more radical reform compared to the ‘light touch’ one proposed by association IZV and consultancy c-alm
Swiss think tank proposes CHF300bn SWF to fund first-pillar pensions
The Swiss National Bank would provide CHF300bn foreign currency assets as a loan to kick-start the sovereign wealth fund, with 1% interest
TOP MANAGERS: SWISS INSTITUTIONAL ASSETS
Company | Assets (€m)
- Zürcher Kantonalbank | 259,829*
- UBS Asset Management | 257,813[1]
- Swiss Life Asset Management | 131,028
- Pictet Asset Management | 72,132*
- AXA Investment Managers | 66,904
- BlackRock | 55,609
- Record Currency Mangement | 53,436***
- Vontobel | 51,459*
- Mesirow Currency Management | 47,619**
- Baloise Asset Management | 38,295
As at 30.6.24, *31.8.24, **30.9.24 ***28.6.24
[1] Excludes Credit Suisse Asset Management AUM
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IPE BEST PENSION FUND IN SWITZERLAND AWARD WINNERS
- 2023 - Pensionskasse Manor
- 2022 - CERN Pension Fund
- 2021 - Pensionskasse Bosch Schweiz
- 2020 - Pensionskasse Manor
- 2019 - CPEG, Caisse de prévoyance de l’Etat de Genève
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Swiss pension funds reform second-pillar pensions from the bottom up
September’s referendum on the reform of second-pillar pensions demonstrates that comprehensive proposals engineered from the top down don’t always bring the expected results. The latest proposal was roundly defeated by two thirds of the electorate.
Swiss corporate schemes under stress while risk of persistent low interest rates returns
Corporate schemes’ assets went up by 1.5%, partially offsetting increasing liabilities, but funding ratios fell to 120.9% in December 2024, from 121.1% in September 2024
IPE DACH Briefing: Germany’s reform zeal to enter unchartered waters
Plus: SPRIN-D calls to deploy capital-funded pensions to support research and development projects; SPD wants to strengthen occupational pensions
Profond’s returns climb to 9.4%, funding ratio to 110% in 2024
Board of trustees decides to apply interest rate of 8% on retirement savings
Swiss pension funds see boost in returns, funding ratios in 2024
Consultancy PPCmetrics says schemes saw returns of 8.7% in 2024, while funding ratios reached a 115.5% level
Faire Vorsorge suggests second pillar reform to end ‘discrimination’ of low earners
The Swiss think tank’s proposal is a more radical reform compared to the ‘light touch’ one proposed by association IZV and consultancy c-alm
Swiss think tank proposes CHF300bn SWF to fund first-pillar pensions
The Swiss National Bank would provide CHF300bn foreign currency assets as a loan to kick-start the sovereign wealth fund, with 1% interest
PKBS switches to Pictet, LGIM to diversify risk
The emergency takeover of Credit Suisse by UBS in March 2023 triggered the pension fund’s decision to look for new asset managers
C-alm, IZV propose light-touch reforms to Switzerland’s second pillar pension system
IZV and c-alm are suggesting a cut in the conversion rate to calculate pension payouts from 6.8% to 6% of salary insured in eight steps, instead of one
Swiss BVK issues €700m infrastructure mandates
A €350m mandate will invest via a multi-manager arrangement, while the other €350m mandate will invest via an unlisted co-investment
Swiss pension funds association updates ESG reporting standards
ASIP updates standards to strengthen qualitative reporting, especially for stewardship
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