Interest rates and pension adjustments

Interest on the retirement savings capital of active members

The Pension Board has decided to grant additional interest of 2.75% on top of the minimum interest rate of 1.25%. This additional interest has been credited to the retirement savings capital of all active members insured with the Fund as at 31 December 2025. Total interest was therefore 4% for 2025.

Total interest on retirement savings capital has averaged 3.69% over the last five years and 2.69% over the last ten years. This remains higher than the average annual LPP/BVG minimum rate of 1.10% over 5 years and 1.07% over 10 years.

Pension adjustments

The Pension Board is required by law and regulations to decide each year whether to adjust pensions currently being paid. The Fund’s Regulations do not provide for any automatic link between pensions and the cost of living, as measured by the consumer price index or the inflation rate. This is also the case for almost all Swiss pension funds, in which only the minimum pensions provided for by the LPP/BVG and paid in the event of disability or death are periodically adjusted in accordance with Federal Council requirements. In its deliberations, the Board takes several parameters into account, such as the Fund’s performance during the year, its financial health as evidenced by its funded status, and the equitable treatment of active members and pensioners. Although the Fund had a funded status of 121.2% as at 31 December 2025 and non-committed funds were available, the Pension Board took the view that it would not be appropriate to adjust the benefits of pensioners. In an uncertain economic context, the Pension Board therefore preferred to take a cautious approach, while also taking into account historic retirement conditions (adjustments to conversion rates in 2018 and associated transitional measures).