SWITZERLAND - The number of underfunded Swiss Pensionskassen has increased considerably in the first quarter as 74.3% are now below the full funding level, according to Swisscanto.

The figure calculated by Swisscanto still was at 63.9% by the end of 2008 and the Swiss Federal Social Insurance Office (BSV) recently noted six out of 10 schemes were underfunded. (See earlier IPE story: Swiss funding levels deteriorate in three months)

Swisscanto,which monitors approximately 80% of all pensionskassen, said the current average funding level was at 91.9% by the end of the first quarter, which is 1.7 percentage points lower than three months ago, while around 27% of pensionskassen were below a 90%-funding level.

Private pensionskassen are now funded at 98.3% on average - 1.9 percentage points down on 20008 - while one-fifth are below 90%.

Among public pensionskassen, the average funding level is 84.2% - 1.6 percentage points lower than at the end of 2008 - and at least 60% are over 10% underfunded.

However, Swisscanto pointed out most of these public pensionskassen have a state guarantee.

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