SWITZERLAND - Despite a 9.5% return for 2009 the Pensionskasse for the canton surrounding the city of Basel, BLPK, is still far from its 2007 near full funding level.

Over the last year the funding level increased from 75.5% to 78.8% which is still far below the 2007 figure of 93.4%.

No decision on a possible switch to DC or recovery measures has been announced yet and the BLPK was not available for comment at the time of publication. (See earlier IPE article: Crisis forces Basel-Land to consider DC switch)

"Results from the working group on a possible switch to DC are expected sometime in 2010," Hans Peter Simeon, chairman of the board at BLPK, had told IPE earlier.

However, the fund pointed out it had invested in new admin software, a new internal control system and a new accounting structure all of which are being implemented.

As for its asset allocation in 2010 the BLPK noted in a press release it will remain cautious as "the visible improvement of the economic framework is not stable yet".

Assets in the fund increased from CHF4.5bn (€3.2bn) to CHF5bn.