The ETH Domain pension plan

The parity commission of the ETH Domain pension plan has decided on its interest rate for 2025. At 3.5%, it is above the minimum interest rate of 1.25% for the mandatory portion of the OPA pension set by the Federal Council. This means that active members will once again receive an attractive rate of interest on their pension assets.

The 2025 interest rate on pension assets in the ETH Domain pension plan is 3.5%. This will be credited on 31 December 2025. As every year, the decision was made shortly before the end of the year and is based on the pension plan’s financial situation and prospects.

The interest is made up of two components: one derived from the return on investments in 2025, and the other from the last release of provisions. On the date on which the decision was taken, 1 December 2025, the provisional return on investments was 6.3%, and the provisional funded ratio a pleasing 110.4%.

Since 2022, the parity commission has employed an interest rate strategy which stipulates that part of the performance is used to strengthen the funded ratio, until the fluctuation reserve of 117% is reached. This procedure enhances the pension plan’s financial stability and creates scope for a dependable interest rate over the years.

From 2008, the year in which the ETH Domain pension plan was set up, until 2023, only the statutory minimum interest rate could be applied. There were two main reasons for this. First, a number of reductions in the conversion rate were necessary to take account of increasing life expectancy. Provisions were created in order to partially cushion the reductions in benefits and offer one-time payments to the active members concerned. Second, PUBLICA was in a phase of low risk capacity owing to the high proportion of pension recipients. This meant that the strategic asset allocation had to be correspondingly conservative, limiting the extent to which PUBLICA could profit from movements on the capital markets. 

However, in each of the three years when the conversion rate was cut (2012, 2015 and 2019), substantial one-time payments were made in favour of active members’ pension assets. These accompanying measures strengthened individual pension assets.

Thanks to sound foundations and a systematically implemented strategy, PUBLICA and the ETH Domain pension plan are well placed and look to the future with confidence.

For and on behalf of the commission presidency 
Margot Ziekau, President of the ETH Domain parity commission
Karsten Bugmann, Vice President of the ETH Domain parity commission