Statement on the takeover of Credit Suisse by UBS
The Pension Fund of Credit Suisse Group (Switzerland) is a legally independent foundation with its own organization and accounting. With 65 employees and assets under management of over CHF 17 billion, it is one of the largest Swiss pension funds. We insure over 17,000 employees of Credit Suisse and its subsidiaries and pay benefits to over 10,000 pensioners. In addition, we also manage Pension Fund 2 and the Hardship Fund of Credit Suisse Group (Switzerland).
The pension fund is in a very robust financial position. With a coverage ratio of almost 130% and fully accumulated fluctuation reserves, we have free funds and an unrestricted risk capacity. This is also reflected by the high interest rate on retirement assets of 6.5% in 2021 and 5% in 2022.
The acquisition of Credit Suisse by UBS has no direct impact on the independent, operational business activities of the pension fund. We are there for our insured if they have any questions about their pension provision and are pressing ahead with our projects to provide them with the best possible pension protection.
The benefit entitlements shown in the insurance certificate as well as the current pensions are not at risk in any way.
Investments with Credit Suisse
The pension fund is required by law to limit investments with the employer to a maximum of 5%. The proportion of investments with counterparty Credit Suisse was significantly below the legal requirements in the past and thus also before the announcement of the takeover of CS by UBS. No significant capital losses have arisen for the pension fund from investments with Credit Suisse as a result of the developments in recent days.
The information published here is based on the current state of knowledge. If changes to our pension model or the general benefits of the pension fund become apparent in the future, we will inform you immediately.
Frequently asked questions
1. What will happen to the Pension Fund of Credit Suisse Group following the announced integration of Credit Suisse into UBS?
The Pension Fund of Credit Suisse Group will continue to exist for the time being. As has been the case in the past, the Pension Fund will continue to insure all Credit Suisse employees. A decision will be made in the medium term about whether to merge the Pension Fund of Credit Suisse with the UBS Pension Fund.The decision has not yet been made.
2. How am I insured?
For as long as your employment relationship remains valid, you will continue to pay Pension Fund contributions as before. The deduction will be made automatically with the monthly salary payment. Retirement assets will continue to accrue accordingly. The benefits outlined in the insurance certificate and the options available under the Pension Fund regulations apply unchanged. We will inform you immediately of any future changes to our pension model or the Pension Fund benefits in general.
3. What will happen with my retirement capital in the Pension Fund?
Your retirement capital is safe. The financial situation of the Pension Fund is very stable; it has a coverage ratio of almost 130% and fully stocked reserves for fluctuations in asset value.
4. What will happen to Pension Fund 2?
For the time being, nothing will change for those who are also insured via the retirement capital savings of Pension Fund 2. The Board of Trustees is following developments closely. We will inform you in good time about any upcoming changes.
5. What will happen to the pension recipients in the Pension Fund of Credit Suisse?
UBS's takeover of Credit Suisse will have no impact on the independent operating activities of the Pension Fund at this time. Current pensions are in no way at risk. No decision has yet been made about if or when the pension recipients of the Pension Fund of Credit Suisse will be transferred to the UBS Pension Fund.
6. Can I still take early retirement?
Yes. All benefits outlined in the insurance certificate continue to apply.All options and choices under the Pension Fund regulations also continue to apply.This also includes the possibilities relating to early retirement.
7. In the case of the SBG and SBV merger (1997), the two pension funds paid out the surplus as a one-time payment to the respective employees of the two banks prior to the merger. Is the same procedure planned for this merger?
It is not possible to comment on this point at this time. What can be stated, however, is that in principle there will be no "dilution," i.e. no financial means outside of the current group of insured may be used.
8. Is there anything I need to do?
Employees who leave Credit Suisse and by extension the Pension Fund of Credit Suisse and who do not transfer to UBS are advised to keep themselves informed about future developments affecting the Pension Fund of Credit Suisse. At some point, those previously insured with the Pension Fund of Credit Suisse may be contacted regarding possible liquidation of the Pension Fund.
(As of September 2023)