MPK underfunded for the first time
SWITZERLAND - The CHF14.8bn (€10bn) pensionskasse for the Swiss retail giant Migros (MPK) has fallen to a 97.1% funding level after delivering a negative return of 12.3% last year.
The pension fund for 82,000 employees needs CHF427m to meet a full funding level, noted the pensionskasse in a statement.
This is the first time in its almost 75-year history that the fund is below a 100% funding level as in 2007 the level had been 115% while the annual return was 2.4%.
The MPK’s asset allocation is currently divided as 48% in bonds, 24% in equities and 27% in real estate.
The fund noted it only indexed pensions to the minimum legal level last year.
Meanwhile, the CHF6.1bn pensionskasse comPlan for employees of the telecommunication company Swisscom noted its funding level has also dropped from 108% or CHF6.9bn in assets to 94%, so its fund is now CHF1bn underfunded.
If you have any comments you would like to add to this or any other story, contact Julie Henderson on + 44 (0)20 7261 4602 or email email@example.com