{"id":4144,"date":"2020-07-10T10:46:12","date_gmt":"2020-07-10T08:46:12","guid":{"rendered":"https:\/\/www.m-q.ch\/?p=4144"},"modified":"2021-01-25T14:53:58","modified_gmt":"2021-01-25T13:53:58","slug":"pension-risk-study-on-the-coverage-ratio-of-sli-companies-2","status":"publish","type":"post","link":"https:\/\/www.m-q.ch\/en\/pension-risk-study-on-the-coverage-ratio-of-sli-companies-2\/","title":{"rendered":"Pension Risk Study on the coverage ratio of SLI companies"},"content":{"rendered":"<figure id=\"attachment_4145\" aria-describedby=\"caption-attachment-4145\" style=\"width: 680px\" class=\"wp-caption alignnone\"><img loading=\"lazy\" decoding=\"async\" class=\"size-medium wp-image-4145\" src=\"https:\/\/www.m-q.ch\/wp-content\/uploads\/2020\/07\/digitialit\u00e4t-menschenrechte-up-umwelt-perspektiven-680x461.jpg\" alt=\"\" width=\"680\" height=\"461\" srcset=\"https:\/\/www.m-q.ch\/wp-content\/uploads\/2020\/07\/digitialit\u00e4t-menschenrechte-up-umwelt-perspektiven-680x461.jpg 680w, https:\/\/www.m-q.ch\/wp-content\/uploads\/2020\/07\/digitialit\u00e4t-menschenrechte-up-umwelt-perspektiven-768x521.jpg 768w, https:\/\/www.m-q.ch\/wp-content\/uploads\/2020\/07\/digitialit\u00e4t-menschenrechte-up-umwelt-perspektiven-1536x1042.jpg 1536w, https:\/\/www.m-q.ch\/wp-content\/uploads\/2020\/07\/digitialit\u00e4t-menschenrechte-up-umwelt-perspektiven-2048x1389.jpg 2048w, https:\/\/www.m-q.ch\/wp-content\/uploads\/2020\/07\/digitialit\u00e4t-menschenrechte-up-umwelt-perspektiven-16x12.jpg 16w, https:\/\/www.m-q.ch\/wp-content\/uploads\/2020\/07\/digitialit\u00e4t-menschenrechte-up-umwelt-perspektiven-258x175.jpg 258w, https:\/\/www.m-q.ch\/wp-content\/uploads\/2020\/07\/digitialit\u00e4t-menschenrechte-up-umwelt-perspektiven-516x350.jpg 516w, https:\/\/www.m-q.ch\/wp-content\/uploads\/2020\/07\/digitialit\u00e4t-menschenrechte-up-umwelt-perspektiven-1179x800.jpg 1179w, https:\/\/www.m-q.ch\/wp-content\/uploads\/2020\/07\/digitialit\u00e4t-menschenrechte-up-umwelt-perspektiven-920x624.jpg 920w, https:\/\/www.m-q.ch\/wp-content\/uploads\/2020\/07\/digitialit\u00e4t-menschenrechte-up-umwelt-perspektiven-1400x950.jpg 1400w, https:\/\/www.m-q.ch\/wp-content\/uploads\/2020\/07\/digitialit\u00e4t-menschenrechte-up-umwelt-perspektiven-300x203.jpg 300w, https:\/\/www.m-q.ch\/wp-content\/uploads\/2020\/07\/digitialit\u00e4t-menschenrechte-up-umwelt-perspektiven-1024x695.jpg 1024w, https:\/\/www.m-q.ch\/wp-content\/uploads\/2020\/07\/digitialit\u00e4t-menschenrechte-up-umwelt-perspektiven-624x423.jpg 624w\" sizes=\"auto, (max-width: 680px) 100vw, 680px\" \/><figcaption id=\"caption-attachment-4145\" class=\"wp-caption-text\">Very good investment year in 2019 for Swiss company pension plans, but it's not time for jubilation. (Image: Unsplash)<\/figcaption><\/figure>\n<p>The internationally oriented Pension Risk Study by Willis Towers Watson analyzes the funding situation of the pension obligations in the balance sheets of all defined benefit pension plans of the 30 leading SLI companies in Switzerland in accordance with the international accounting standards IFRS and US-GAAP, both within and outside Switzerland.<\/p>\n<p>\"Every year, we monitor the markets and examine the impact on the pension obligations of Swiss companies. In our experience and based on the findings of our studies, retirement planning is an important topic among employees. Employers are ready to develop measures to meet future challenges,\" explains Stephan Wildner, Head of Retirement at Willis Towers Watson in Zurich.<\/p>\n<p><strong>Encouraging 2019, cloudy outlook<\/strong><\/p>\n<p>Compared to the previous year, the pension liabilities of the SLI companies analysed increased by CHF 4.6bn (+2.2%). Over the same period, plan assets increased by CHF 8.8bn (+4.8%), so the average funded ratio for the SLI companies increased by 4% from 81% in 2018 to 85%. If discount rates had not fallen further since 2018, the result would have been even more positive.<\/p>\n<p>However, it is not appropriate to be jubilant in the current environment. That's because the onset of the COVID-19 crisis severely shook up investment markets in the first quarter of 2020, wiping out much of the strong investment returns of 2019. The second quarter of 2020 did see some rebound, but not enough to offset the effect of the COVID-19 slump. As a result, the outlook for 2020 remains clouded for the moment.<\/p>\n<p><strong>Long-term declining discount rates and rising plan assets?<\/strong><\/p>\n<p>Discount rates are expected to stagnate or even decline further over the long term due to the central banks' monetary glut to combat COVID-19. Given the ever-increasing retiree burden and low discount rates, companies should expect pension plan funding requirements to continue to increase. \"The strong investment results in 2019 should not make us careless, as the current trend due to COVID-19 shows. It is therefore important to consider relieving measures,\" says Peter Zanella, pension fund expert at Willis Towers Watson in Zurich. \"Introducing 1e plans or adjusting benefit parameters and funding help stabilize liabilities. Optimizing the investment strategy can help to increase the expected return on assets while maintaining the same level of risk. This can create better conditions to meet the challenges ahead,\" adds Zanella.<\/p>\n<p><strong>Switzerland catches up again in international comparison<\/strong><\/p>\n<p>The average funding ratio in (US) companies, summarised in the Willis Towers Watson Pension 100 Index, has risen slightly from 86% to 88%. This means that Switzerland (2018: 81%, 2019: 85%) is catching up again somewhat with US plans. The coverage ratio of DAX companies recorded a decline from 67% (2018) to 66%. Compared to other countries, Switzerland performs worse, which is mainly due to the much lower interest rate level as a result of the Swiss National Bank's negative interest rate policy.<\/p>\n<p><strong>Background information on the study<\/strong><strong><br \/>\n<\/strong>The Pension Risk Study by Willis Towers Watson examines the pension obligations as well as the level and development of pension expenses of the companies in the Swiss Leader Index (SLI). This index is made up of the 20 SMI companies and the 10 largest stocks of the 30 SMI Mid Cap stocks. The SLI thus contains the 30 most important stocks on the Swiss equity market and comprises the country's leading listed companies.<\/p>\n<p>In 2019, Willis Towers Watson analysed the disclosed pension liabilities of SMI and SLI companies according to the international accounting standards IFRS and US GAAP. The results therefore differ fundamentally from the data published by Swiss pension funds in accordance with Swiss GAAP FER26.<\/p>\n<p>The aim of the Pension Risk Study by Willis Towers Watson is to gain an overview of the situation of Swiss companies and thus create a sound basis for the development of specific measures for individual companies.<\/p>\n<p><a href=\"http:\/\/www.willistowerswatson.com\">www.willistowerswatson.com<\/a><\/p>\n<p>&nbsp;<\/p>\n<p>&nbsp;<\/p>\n<p>&nbsp;<\/p>\n<p>&nbsp;<\/p>","protected":false},"excerpt":{"rendered":"<p>The internationally oriented pension risk study by Willis Towers Watson analyzes the funding situation of the pension obligations in the balance sheets of all defined benefit pension plans of the 30 leading SLI companies in Switzerland in accordance with the international accounting standards IFRS and US GAAP both inside and outside Switzerland. \"Every year we monitor the markets and examine the impact on the pension obligations of the [...]<\/p>","protected":false},"author":35,"featured_media":4145,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[4],"tags":[4261,4358,4357,3490,4223],"class_list":["post-4144","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-risikomanagement","tag-corona-krise","tag-deckungsgrad","tag-pension-risk-studie","tag-schweiz","tag-studien"],"acf":[],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v26.2 - 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