Actuarial valuation report

An actuarial valuation report is a document prepared by an accredited pension actuary in accordance with Article 52e LPP/BVG. The report assesses, in an independent and objective way, how strong a pension fund’s financial position is; whether the tables it uses for actuarial calculations are appropriate; whether its regulations are compliant; and whether it can honour its long-term obligations. In the report, the accredited pension actuary confirms that they have complied with the professional standards laid down by the Swiss Chamber of Pension Actuaries and with the requirement of independence.

The main aim of the report, which must be prepared periodically but at least every three years, is to give the Pension Board an assessment of how robust the Fund is, identify any risks and confirm that insured benefits can be funded in accordance with statutory rules. In particular, it examines the Fund’s actuarial tables, discount rate, funding of benefits, provisions, security measures and ability to make up any underfunding. The exercise is an essential governance and oversight tool.

The report then assesses in detail the Fund’s financial position as at 31 December 2024. At that date, the Fund had a funded status of 119.4%, significantly higher than the year-earlier figure of 113.4%, and surplus assets of CHF 1.321 billion, allocated in full to the investment fluctuation reserve. That reserve equalled 97.1% of its target, which means that the Fund was well positioned to withstand market fluctuations. Available pension assets amounted to CHF 8.13 billion, while benefit obligations totalled CHF 6.81 billion.

The report also highlights the technical results for 2024. During that year, the Fund generated income of CHF 418.8 million. That was mainly due to the 9.0% investment return it achieved, which was much higher than the minimum return required (between 1.6% and 2.0%). There were some negative factors – such as the CHF 23.2 million loss on pensioner mortality – but they were comfortably offset by the Fund’s excellent financial performance. The report also found that the Savings Plan’s funding was balanced, with no structural deficit.

Overall, the accredited pension actuary’s assessment was good. All indicators were positive, with the exception of the Fund’s ability to make up any underfunding, which the actuary found to be limited because of the Fund’s demographic maturity. The Fund meets all statutory requirements, uses appropriate actuarial tables and is in a good financial position. The actuary made no urgent recommendations, although the Pension Board was invited to analyse the new LPP/BVG 2025 actuarial tables as soon as they are published.