PF – Pension capital savings PF 2 – Retirement capital savings

2022 Annual Report

Pension Fund of Credit Suisse Group (Switzerland)

2022 Annual Report

Pension Fund of Credit Suisse Group (Switzerland)

As of December 31, 2022

Key figures

Coverage ratio under Art. 44 BVV·2

128.7%

Total assets (CHF)

17.4 billion

Performance

-7.5%

Reserve for fluctuations in asset value (CHF)

2.4 billion

Technical interest rate

1.58%

Balance sheet

2022 2021
in CHF mn in CHF mn
Total assets 17,405 19,376
Active participants’ liabilities 6,629 6,404
Pensioners’ liabilities 6,622 7,838
Actuarial provisions 96 364
Reserve for fluctuations in asset value 2,400 2,480
Operative account 2022 2021
in CHF mn in CHF mn
Employee contributions 150 146
Employer contributions 258 297
Purchase amounts 41 51
Net return on investments 1,548 1,624
Termination benefits on leaving the Pension Fund 347 355
Retirement pensions paid out 409 411
Surviving spouse's pensions paid out 65 65
Disability pensions paid out 22 23

The Pension Fund of Credit Suisse Group (Switzerland), with total assets of approximately CHF 17.4 billion, over 18,000 active participants, and around 11,000 pensioners, is one of the largest pension funds in Switzerland.

Interest on retirement savings capital

The Board of Trustees of the Pension Fund set an interest rate of 5% on the retirement savings capital for the 2022 reporting year. The minimum BVG interest rate is 1.0%.

Comparison of minimum BVG interest rate vs. interest on retirement savings capital, 2018–2022

The Board of Trustees of the Pension Fund set an interest rate of 5% on the retirement savings capital for the 2022 reporting year. The minimum BVG interest rate is 1.0%.

Coverage ratio

The coverage ratio is 128.7%. The Pension Fund has unlimited risk ability.

Coverage ratio under Art. 44 BVV 2 2018–2022

The coverage ratio under Art. 44 BVV 2 stood at 128.7% at the end of 2022 and thus fell slightly, since it stood at 130.9% at the end of 2021. The reserves for fluctuations in asset value have been increased fully. The Pen-sion Fund thus has non-committed funds and unlimited risk ability.

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, 2023. Pensions were last adjusted on January 1, 2007. The cumulative increase in the cost of living since then amounts to 4.9%.

Performance

The Pension Fund of Credit Suisse Group (Switzerland) achieved a performance of -7.5% in the 2022 reporting year (previous year: 9.5%).

Performance in recent years

2018
-2.2%
2019
11.3%
2020
6.2%
2021
9.5%
2022
-7.5%

Investments

The Pension Fund of Credit Suisse Group (Switzerland) has a broadly diversified portfolio.

Asset Allocation as of December 31, 2022

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The Pension Fund of Credit Suisse Group (Switzerland) conducts an annual detailed asset and liability manage-ment 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.

Number of insured participants

There was only a slight drop in the number of pensioners and the number of insured participants in 2021.

Number of insured participants as of December 31, 2022

Active participants
18,244
Pensioners
10,875
2022 2021
Active participants 18,244 17,844
Pensioners 10,875 10,995
Total number of insured participants 29,070 28,839

The total number of insured participants increased by 231 to 29,070 persons. At the end of 2022, the Pension Fund had 18,244 active participants and 10,875 pensioners. Active participants account for 63% of the total number, with pensioners accounting for 37%.

Active participants

The number of active participants has not changed significantly; it increased by 2.2% – from 17,844 to 18,244 insured participants.

Age category as of December 31, 2022

2022 2021
Men 10,900 10,800
Women 7,344 7,044
Total number of active participants 18,244 17,844

The largest age category, comprising 5,231 active participants, is participants between 35 and 44 years old. The average age of active participants is 44.3 years for men and 41.9 years for women.

Pensioners

The total number of pensioners decreased by 120 to 10,875 persons as of the end of the year. This figure comprises all pensioners, including retirement pension recipients, disability pension recipients, surviving spouse's pension recipients, child's pension recipients, and support pension recipients.

Types of pension as of January 1, 2023

% Men Women Total
Retirement pensions 75.3% 5,073 3,051 8,124
Surviving spouse’s pensions 16.6% 160 1,640 1,800
Disability pensions 4.4% 218 261 479
Child’s pensions 3.8% 175 233 408
Support pensions 0.3% 20 12 32
Divorced spouse’s pensions 0.3% 1 31 32
Total number of pensioners 100% 5,647 5,228 10,875

The 8,124 retirement pension recipients account for the majority of pensioners, making up 75.25% of the total. The 1,800 recipients of a surviving spouse's pension constitute the second-largest group at 16.55%. The Pension Fund also paid 32 divorced spouse's pensions in the 2022 reporting year.

Number of pensioners by age as of December 31, 2022

2022 2021
Men 5,647 5,721
Women 5,228 5,274
Total numbers of pensioners 10,875 10,995

The 65–74 age group comprises the largest number of pension recipients, with a total of 3,836 persons. There are 124 insured participants in the 95-plus age group.