The Pension Fund of Credit Suisse Group (Switzerland), with total assets of some CHF 18.1 billion, around 18,000 active participants, and more than 11,000 pensioners, is one of the largest pension funds in Switzerland.

As an all-encompassing pension fund, the Pension Fund of Credit Suisse Group (Switzerland) pays interest on the entire retirement savings capital – including the extra-mandatory portion – at the interest rate set by the Board of Trustees. The Board of Trustees deliberately attaches greater weight to security through the formation of the reserves for fluctuations in asset value and the technical reserves than to the direct participation of the active participants in the performance. In view of the above, the Board of Trustees set an interest rate of 2.25% on the retirement savings capital for 2020.

The coverage ratio indicates the extent to which a pension fund’s obligations are covered by its assets. The coverage ratio as of the end of 2020 stood at 120.5%; this represents a noticeable rise, since it stood at 116.4% as of the end of 2019. Ample reserves exist for fluctuations in asset value; the target value is 16.0%. The Pension Fund thus has non-committed funds and unlimited risk ability. The target value for the reserve for fluctuations in asset value is to be raised gradually from the current 16% to 20% by 2024.

Cost-of-living allowance for pensioners

Each year, the Board of Trustees reviews whether to grant a cost-of-living allowance. In view of the prevailing and historically low inflation environment, the Board of Trustees decided not to grant any new increase in the cost-of-living allowance as of January 1, 2021. Pensions were last adjusted on January 1, 2007. The cumulative increase in the cost of living since then amounts to 1.8%.

An investment performance of 6.2% was generated; of this figure, around 0.6% is required to lower the valuation rate for pension obligations and revalue retirement losses.

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The Pension Fund of Credit Suisse Group (Switzerland) conducts an annual detailed asset and liability management study, in which it analyzes whether the assets and benefit obligations are aligned with one another in the medium and long term. This constitutes the basis for defining the Pension Fund’s investment strategy, risk ability, risk tolerance, and performance objectives.

The total number of insured participants increased by 40 people and now totals 28,923 people. At the end of 2020, the Pension Fund had 17,893 active participants and 11,030 pensioners. As in previous years, the number of active participants has continued to increase and the number of pensioners has fallen. Active participants account for 62% of the total number, with pensioners accounting for 38%.

The largest age category, comprising 5,131 active participants, is that of participants between 35 and 44 years old. The average age of active participants is 42.7 years for men and 40.2 years for women.

The 8,231 retirement pension recipients account for the majority of pensioners, making up 74,6% of the total. The 1,762 recipients of a surviving spouse’s pension constitute the second-largest group at 16%. The Pension Fund also paid 18 divorced person’s pensions in the 2020 reporting year.

The 65 to 74-year-olds comprise by far the largest group of pension recipients in numerical terms, with a total of 3,877 people. There are 94 insured participants in the 95-plus age group.