• The investment performance for 2023 is 4.8%. The estimated funding ratio at the end of 2023 is around 114%. Retirement savings will earn interest at 1.5% in 2023. This interest rate decision is based on the interest rate regulation in the Investment Fund Regulations.
• Slight adjustment of the investment strategy as of January 1, 2024 due to an asset liability study carried out in the summer of 2023. Among other things, the strategic bond ratio has been increased from 8% to 13%. The equity component remains unchanged. 
• Adjustments to the pension regulations as of January 1, 2024 due to the 2021 AHV reform. The conversion rate has also been harmonized, as well as transitional provisions for women insured as of December 31, 2023 (see the information for fund members issued in November 2023).

Definitive interest rate of 1.5% on retirement savings in 2023


Our pension fund closed 2023 with an investment performance of 4.8%. The estimated funding ratio is around 114%. In the past year, equities performed strongly – especially worldwide equities. The CHF bonds also made a significant contribution to the positive investment result – this was due to interest rate cuts in Switzerland which increased the value of the bonds in the portfolio.

Most pension funds in Switzerland ended 2023 with positive investment results. Based on the UBS barometer, the pension funds achieved investment performances of around or just below 5% in 2023. However, due to their different investment strategies, the investment performances of the pension funds are not directly comparable.

The Board of Trustees decided to pay 1.5% interest on retirement savings in 2023. The Board of Trustees based its decision on the interest rate regulation in the Investment Fund Regulations. With a funding ratio in the range of 110% to 115% and an investment performance of over 3%, the regulation implies a 1.5% return on retirement savings. The Investment Fund Regulations are available on the Bayer Pension Fund Switzerland website. https://bayerpensionskasse.ch/images/uploads/2023-01-01-anlagereglement.pdf

Compared over several years to other pension funds on the market, our members have thus far benefited from above-average interest rates on their retirement savings – see the comparison with the Swisscanto pension fund study:

Adjustment to Investment Fund Regulations as of January 1, 2024

In summer 2023, the Board of Trustees commissioned an asset liability study (ALM study) from the consulting firm c-alm AG. The purpose of the study is to optimally align investments with the long-term financial obligations of the pension fund. ALM studies are usually carried out approximately every 5 years. As a result of this ALM study, the Board of Trustees slightly changed the investment strategy as of January 1, 2024. The main changes to the strategic quotas are:

• Reduction of mortgages from 10% to 8%
• Increase in bonds from 8% to 13%
• Reduction of real estate from 30% to 28%

The real estate is divided into collective investment holdings and direct real estate. The Board of Trustees achieved a further expansion of direct real estate with the construction project in Pfeffingen which began in 2023.

The equity component remains unchanged at 40%.

Amendments contained in the 2024 Pension Fund Regulations

In mid-November, we informed you about the adjustments to the pension regulations as of January 1, 2024, see https://bayerpensionskasse.ch/en/news/take-aways-on-the-ahv-21-reform/

The majority of the adjustments are related to the AHV 21 reform on the one hand and the uniform conversion rates on the other. However, transitional provisions apply to women insured in the pension fund as of December 31, 2023. The following is an overview of the most important adjustments:

If you have any questions, our contacts at Kessler Vorsorge or the members of the Board of Trustees will be happy to help.

Yours sincerely,

Bayer Pension Fund Switzerland

Pascal Bürgin, President

Yves Windhäuser, Vice-President