Compenswiss, the public institution managing Switzerland’s first pillar social security funds, has recorded positive financial results for 2020 for the compensation fund for old aged and survivors, AHV, of CHF1.9bn (€1.7bn), up from CHF1.6bn in 2019.
AHV ended 2020 with a positive ratio between income and costs of CHF579m. Equities pushed returns at AHV to CHF1.3bn in 2020, however below the CHF2.8bn recorded in 2019.
The interest of CHF51m paid by the disability insurance fund, IV, on its debt to AHV contributed slightly to the positive operating result alongside the tax reform (STAF) approved with the referendum to finance the AVH.
The tax reform adds CHF2bn per year to the old aged and survivors fund. Contributions from insured and employers into the AHV fund rose by 5.0% last year as a result of the reform passed in 2019.
EO, the fund providing compensation for loss of income to people in the military and civil services, for maternity and paternity leave, closed 2020 with a positive ratio between income and costs of CHF134m, while the fund for disability insurance (IV) ended the fiscal year with -CHF431m.
EO returned CHF50m in 2020, down from CHF89m the prior year, to reach positive operating results of CHF184m last year, compared with CHF142m in 2019.
The IV fund returned CHF164m last year compared with CHF407m in 2019, a result that leads to an operating loss of -CHF267m in 2020 compared with a positive return worth CHF24m the prior year.
The result means that the debt accumulated by the IV fund towards AHV remains unchanged at CHF10.2bn, even though positive operating results achieved since the foundation of the IV fund in 2011 helped to reduce the amount of debt by CHF4.6bn. Contributions to the IV and EO increased by 1.3%.
Assets at the AHV fund, including liquidity, returned 4.05% in 2020, 4.29% at IV and 4.34% at EO.
Compenswiss had total assets of CHF38.5bn at the end of 2020, up from CHF36.4bn in 2019, including CHF33.4bn in the AHV fund, CHF3.9bn in the IV and CHF1.1bn in the EO funds.