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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

The Swiss pension institutions surveyed achieved an estimated asset-weighted return of –0.04% (YTD: 7.09%) in the third quarter of 2021. Only the global bonds, Swiss real estate and commodities asset classes made positive contributions to returns.

Current funding ratios

Due to the slightly negative quarterly return, the estimated average funding ratios fell in the third quarter by less than one percentage point compared to the highest levels in the previous quarter. The development of the funding ratios (estimates) is as follows:

Pension schemes

Funding ratios 31.12.2020* in %
Funding ratios 31.06.2021 in %
Funding ratios 31.09.2021 in %
Private-law funds

116.1
123.3
122.7
Public-law funds,
full capitalisation

109.2
115.8
115.3
Public-law funds, partial capitalisation

87.7
93.2
92.6

*Results of the Swiss Pension Funds Study 2021.

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, 27 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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