2023 saw the net investment performance return to positive territory, with a consolidated figure of 3.9 %.
As a result, the consolidated funded ratio also rose, to stand at 98.3 % at the end of 2023. Of the eleven
open pension plans, three are still underfunded. The consolidated funded ratio of the closed pension plans was 100.6 %.
Despite the underfunding recorded at the end of 2022, improved return expectations meant that no restructuring measures were necessary. The governing bodies and units responsible will now examine in detail the financial situation at the end of 2023. PUBLICA’s finances and those of the pension plans have thus improved somewhat. We are both concerned and saddened by events in the geopolitical arena and the immense human suffering they are causing. It is difficult at present to predict the future ramifications of the escalation in the Middle East and its impact on the financial markets.
At the beginning of last year, PUBLICA embarked on a new strategy period, which runs from 2023 to 2026. When drawing up the strategy, we took great care to ensure that it is comprehensible and fit for purpose. Numerous projects have already been implemented.
Our employees have welcomed this, awarding us high marks for strategy in our 2023 staff survey. They are generally very satisfied with their work situation. The survey also highlights areas where we can still improve further, and we will now set about tackling them.
Our annual report details the measures we are taking to achieve our strategic goals. For example, we have made preparations for a merger of the closed pension plans, which will balance risks and simplify administrative processes. A number of adjustments have been made to the pension plan regulations, to reflect changes in the personal circumstances of our active members. The groundwork for these was laid last year, and they were implemented on 1 January 2024. The new portal has made it easier for affiliated employers to work with us. One of our actions to implement the strategic asset allocation has been to make initial investments in private infrastructure equity.
Internally, we have reorganised and streamlined our Pensions division. We are looking to grow our real estate activities and portfolio, and have already put in place the structures necessary to do so.
Best regards,
Kaspar Müller Doris Bianchi
Chair of the Board of Directors, PUBLICA Director, PUBLICA
