Dear colleagues,

We would like to inform you of the decisions taken by the Board of Trustees in relation to our pension fund:

• The Board of Trustees has decided to give a greater consideration to the criterion of sustainability (environmental, social, governance) in investment decisions. To effectively implement this, the pension fund has invested a portion of its assets in the “Swisscanto responsible fund” of our new asset managers Zürcher Kantonalbank ZKB.
• Retirement savings will earn interest at 1.0% in 2022. As a result of the negative investment performance of roughly -10% (return YTD November 30, 2022), no additional interest will be paid. In spite of this negative investment performance, however, our pension fund continues to be in a solid financial position with a funding ratio of approximately 110%.
• Sebastian Hoch will take his seat on the Board of Trustees as a new employer representative starting January 1, 2023. He will replace Wolfgang Bäcker who will be leaving the Board of Trustees. We would like to thank Wolfgang Bäcker for his many years of service on the Board of Trustees, and we are delighted that he will continue to make a significant contribution to our Real Estate Committee as an external member.

Greater consideration of ESG aspects when investing

The Board of Trustees has decided to take greater consideration of environmental, social, and governance aspects in future investment decisions. When making investments, both the return on the investment and its impact on the environment and on society must be considered. The Board of Trustees seeks to ensure a positive performance of investments in the long term and a reduction of investment risks.

These guidelines are new and enshrined in the Investment Fund Regulations. Upon the switch to Zürcher Kantonalbank ZKB, the guidelines are being implemented with the investment of a portion of the pension plan assets in the “responsible fund” of our new asset managers.

The Investment Fund Regulations are available on the Bayer Pension Fund Switzerland homepage.

Definitive interest rate of 1.0% on retirement savings in 2022

Retirement savings will earn interest at 1.0% in 2022. As a result of the negative investment performance of roughly -10% (return YTD November 30, 2022), no additional interest will be paid. In spite of this negative investment performance, however, our pension fund continues to be in a solid financial position with a funding ratio of approximately 110%.

This negative performance trend is primarily due to the current geopolitical situation and the development of the financial markets. Fortunately, however, October and November produced this year’s first positive investment results. The investment is being monitored by the Board of Trustees, assisted by the Investment Committee and an external investment controlling firm. For the Board of Trustees, this negative performance trend is understandable. The Board of Trustees therefore does not see any urgent need to take action to adjust the strategic assets.

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

Organization of the Committees for the Term 2023–2025

Composition of the Board of Trustees:

Composition of the Investment Committee:

Composition of the Real Estate Committee:

Amendments contained in the 2023 Pension Fund Regulations

The 2023 Pension Fund Regulations contains amendments to the financing of any reductions in or exemptions from pension contributions. Any such reductions or exemptions can be financed through the employer or a welfare foundation.

The 2023 Pension Fund Regulations are available on the Bayer Pension Fund Switzerland homepage.

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