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Pension Funds Monitor

2nd pillar indicator providing information on funding ratios and investment performance.

Funding ratio and return as key criteria

The Pension Funds Monitor is a real-time indicator of the financial position in the 2nd pillar. It provides information about the average funding ratio and the average investment performance of Swiss pension funds. The aim of the Pension Funds Monitor, besides gaining insight on performance, is to provide an indicator that can act as a key criterion for assessing the financial situation of pension institutions.

Current yields

In the extremely turbulent investment year 2020, Swiss pension institutions recorded an estimated asset-weighted yield of 3.59%. With the exception of commodities and global bonds, all asset classes made positive contributions. In the fourth quarter, the estimated asset-weighted yield was 4.45%.

Current funding ratios

The funding ratios increased again in the fourth quarter. At the end of the year, the Swiss pension funds offset the funding ratio losses of the first quarter and are now even above the level seen at the end of 2019.
The development of the funding ratios (estimates) is as follows:

Pension schemes Funding ratios 31/12/2019* in % Funding ratios 30/09/2020 in % Funding ratios 30/12/2020 in %
Private-law funds
113.9 111.1 115.6
Public-law funds,
full capitalisation
107.7
105.3 109.3
Public-law funds, partial capitalisation
82.4
80.7 84.0

*Results of the Swiss Pension Funds Study 2020

You will find the complete results of the current Pension Fund Monitor as a PDF file to download under "Our publications". Publication dates 2021: 26 January, 26 April, 26 July, 26 October.

Information provided by the Monitor

The calculations of the Pension Fund Monitor are based on data from the Swiss Pension Fund Study, which is published annually.

The funding ratios of the current year are estimated and aggregated for the individual pension plan. Changes on the liabilities side are determined using the historical target returns of the previous year. If no reliable target return can be calculated, the average of the historical target returns is used. The performance of individual asset-side balance sheet items is simulated by means of index performances without deduction of asset management costs and under the assumption that no rebalancing takes place.

The result of the aggregation is the performance of the total assets. Weighted averages are, in principle, used for the estimations at the aggregated level. The weighted and the unweighted averages are given for the performance estimate: the unweighted average is the simple mean of the performance estimates at the level of the individual pension scheme.

We recognise that a consideration of the average funding ratio alone provides only limited information. Each pension scheme must be considered based on its individual situation.

Our publications

Further documents on the following topics can be found on the German and / or French versions of this page:

  • Publication "Pension Funds Monitor"
  • Pension Funds Study

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