Correct definition of parameters
Over the past ten years, the actuarial reserves of pensioners have been increased by CHF 260 million. This enabled the technical interest rate to be reduced from 4% to 1.75%. This means that only a yield of 1.75% has to be achieved on the actuarial reserves to ensure that the current pensions are still financed. In today's environment, an expected long-term return of 1.75% for a pension fund is realistic. The conversion rate has been reduced to 4.7% in order to reflect these yield prospects and the rising life expectancy in the conversion rate. This means that no further cross-subsidisation of pensioners by the active insured occurs in the case of new retirements, and the yield generated can make a greater contribution to strengthening the pension fund.
Cautious investment strategy
Since the security of our policyholders is important to us, we have deliberately chosen a cautious investment strategy. This strategy puts us in a better position to counter poor investment years. The price we pay for this is that we do not benefit to the same extent from good investment years.
Long-term financial security
With the measures we have taken in recent years, we have taken important steps to ensure that our pension fund - and correspondingly your pensions - are secure in the long term.