For the first time, Swiss public pension institution Compenswiss will set different asset allocations for the three first-pillar social security funds it manages – AHV, IV and EO.
The funds, established gradually after the Second World War, now face distinct financial challenges. The outlook for the disability insurance fund (IV) remains weak, while uncertainty surrounds the funding of the 13th AHV pension month, approved in a 2024 referendum and due to be paid out this year.
Swiss pension funds also face risks in hedging investments against the US dollar or currencies from high-interest-rate countries. The sector broadly supports currency hedging to reduce risk, but disagrees on whether current interest rate differentials justify the moves.
In Germany, industry and policymakers are intensifying efforts to roll out defined contribution (DC) pensions nationwide, highlighting the need to shift towards capital market-based solutions with lower costs.
Beate Petry, chair of the Arbeitsgemeinschaft für betriebliche Altersversorgung (aba), said the occupational pension association backs further reform to open social partner DC models to third parties, following the law to reinforce occupational pensions that took effect this year.
Social partners behind the German banking sector’s Pensionsfonds BVV are revising collective bargaining agreements to scale up DC plans. Unions, including Ver.di, are supporting these social partner DC pensions, collaborating with colleagues in education and chemical sectors to expand coverage.
Lawmakers are also paying attention. Pascal Reddig, MP for the CDU/CSU and member of the new pension commission (Alterssicherungskommission), highlighted the need to reach 80-90% penetration of capital-funded pensions, potentially through another major reform.
Meanwhile, market shifts and corporate requirements are driving consolidation among pension consultancies. Mercer is targeting firms in strategic communications, HR technology and investment management, while SV SparkassenVersicherung has taken a stake in Heubeck pen@min to strengthen its position in the occupational pension sector.
Items to note:
- The IPE Real Assets Infrastructure & Natural Capital Global Conference & Awards 2026 is taking place on 17 and 18 September in Munich.
Luigi Serenelli
IPE DACH Correspondent
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