Swiss pension funds are trying to look on the bright side of their new-found situation, brought about after the issuance of 10-year government bonds with negative interest rates.
Christoph Ryter, president at the Swiss pension fund association ASIP, said a number of changes to technical parameters had already been accounted for, particularly at pension funds managing above-mandatory assets, which is currently the majority. “I do not see vultures circling over the Pensionskassen yet,” he said. “They can adapt to the situation.”
Responding to media reports warning of possible funding problems in the Swiss second pillar, Olivier Vaccaro, a consulting partner at Aon Hewitt, said: “Of course, if the current environment remains the same, there will be a big problem. “But pension funds are reacting – they are looking at plan design and de-risking adjustments and choosing more conservative technical parameters.”
