Swiss pension discount rates used for international pensions accounting were at historical lows at the year end and have fallen further following the SNB’s 15 January announcement.
KPMG’s annual survey of Swiss pension accounting assumptions showed that median discount rates used by companies reporting under IFRS or US GAAP fell by 110bps over 2014. Following the SNB’s 15 January announcement regarding the break in the CHF-EUR peg, yields fell by around a further 50bps though have, at the time of publication, recovered by around 10-15bps.
KPMG’s survey of 92 Swiss pension foundations where the sponsors report under IFRS or US GAAP provides an insight into trends into developments in accounting assumptions over 2014.
KPMG brochure