We are pleased to present our study of trends based on 239 Swiss companies’ reporting at 31 December 2025 here:
2026 Review of employee benefits accounting
Some highlights of this edition:
- The average funding level under accounting standards improved from 92% to 96% over 2025, mainly due to higher discount rates (from 0.97% to 1.14% per year on average).
- A “set-and-forget” approach to assumptions, particularly demographic ones, remains highly prevalent, so that assumptions may no longer be best estimate.
- The assumed proportion of retirement benefit taken as cash rose from 35% to 39% on average, still below the latest Swiss average of 43%.
Three developments deserve particular attention for the 2026 year end. The BVG 2025 tables, published in late December 2025, are expected to be adopted by most companies over 2026. The BVG Commission has recommended to the Federal Council a rise in the BVG/LPP minimum interest rate from 1.25% to 1.75% for 2027, which companies should allow for in their interest credit assumption. Finally, discount rates have risen: our latest recommendation for a 15-year duration stood at 1.40% per year at 30 September 2026, compared with 1.20% at 31 December 2025.
Changing the interest credit assumption may result in an overall deterioration in the accounting balance sheet, depending on the extent of the change, the maturity of the pension plan and the level of turnover. We would be pleased to discuss what this means for your company and to help you plan for your year end, ideally well ahead of it.
We support your year end with valuations under IAS 19, US GAAP ASC 715 and IPSAS 39.