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Post-employment benefit plans
 12 Months Ended
Dec. 31, 2023
Disclosure Post-employment Benefit Plans [Line Items]  
Post-employment benefit plans [text block]
Note 27
 
Post-employment benefit plans
 
a) Defined benefit plans
UBS has established
 
defined benefit
 
plans for its
 
employees in various
 
jurisdictions in
 
accordance with
 
local regulations
and practices.
 
The major
 
plans are
 
in Switzerland,
 
the UK,
 
the US
 
and Germany.
 
The level
 
of benefits
 
depends on
 
the
specific plan rules.
Swiss pension plans
The Swiss pension
 
plans consist of
 
the UBS Swiss
 
plan and the
 
Credit Suisse Swiss plan,
 
covering employees of UBS
 
Group
AG in Switzerland and employees of
 
companies in Switzerland that have close economic
 
or financial ties with UBS
 
Group
AG, and exceed the minimum benefit requirements under Swiss pension
 
law. The Swiss plans offer retirement,
 
disability
and survivor
 
benefits and
 
are governed
 
by Pension
 
Foundation Boards.
 
The responsibilities
 
of these
 
boards are
 
defined
by Swiss pension
 
law and the
 
plan rules. The
 
UBS Swiss
 
plan covers contributions
 
for all salary
 
levels. The Credit
 
Suisse
Swiss plan
 
covers contributions
 
up to
 
a salary
 
of CHF
138,180
 
(USD
164,169
), and
 
contributions above
 
that salary
 
go
into the Credit Suisse
 
Swiss 1e plan, which
 
is accounted for under
 
IFRS Accounting Standards
 
as a defined contribution
plan.
Savings
 
contributions
 
to
 
the
 
Swiss
 
plans
 
are
 
paid
 
by
 
both
 
the
 
employer
 
and
 
the
 
employee.
 
For
 
the
 
UBS
 
Swiss
 
plan,
depending on the
 
age of the
 
employee, UBS pays
 
a savings contribution
 
that ranges between
6.5
% and
27.5
% of the
contributory base salary
 
and between
2.8
% and
9
% of the contributory
 
variable compensation. Employees
 
can choose
the level
 
of savings
 
contributions paid
 
by them,
 
which vary
 
between
2.5
% and
13.5
% of
 
the contributory
 
base salary
and
 
between
0
%
 
and
9
%
 
of
 
the
 
contributory
 
variable
 
compensation,
 
depending
 
on
 
age
 
and
 
choice
 
of
 
savings
contribution
 
category.
 
For
 
the
 
Credit
 
Suisse
 
Swiss
 
plan,
 
depending
 
on
 
the
 
age
 
of
 
the
 
employee,
 
UBS
 
pays
 
a
 
savings
contribution that ranges between
7.5
% and
25.0
% of the contributory base salary and
6
% of the contributory variable
compensation. Employees
 
can choose
 
the level
 
of savings
 
contributions paid
 
by them,
 
which vary
 
between
5.0
% and
14.0
% of the contributory base salary
 
and between
3
% and
9
% of the contributory variable
 
compensation, depending
on age and choice of savings
 
contribution category. UBS also pays
 
risk contributions that are
 
used to fund disability and
survivor benefits.
The plans offer to members at the
 
normal retirement age of
65
 
a choice between a lifetime pension
 
and a partial or full
lump sum payment. Participants
 
can choose to draw
 
early retirement benefits starting
 
from the age of
58
, but they can
also continue employment
 
and remain active
 
members of
 
the plan until
 
the age of
70
. Employees can
 
make additional
purchases of benefits to fund early retirement benefits.
The pension amount
 
payable to a
 
participant is calculated
 
by applying a conversion
 
rate to the
 
accumulated balance of
the
 
participant’s
 
retirement
 
savings
 
account
 
at
 
the
 
retirement
 
date.
 
The
 
balance
 
is
 
based
 
on
 
credited
 
vested
 
benefits
transferred
 
from
 
previous
 
employers,
 
purchases
 
of
 
benefits,
 
employee
 
and
 
employer
 
contributions
 
made
 
to
 
the
participant’s
 
retirement
 
savings
 
account,
 
and
 
interest
 
accrued.
 
The
 
annual
 
interest
 
rate
 
credited
 
to
 
participants
 
is
determined by the Pension Foundation Boards at the
 
end of each year.
Although the Swiss plans are
 
based on a defined contribution
 
promise under Swiss pension
 
law, they are accounted for
as defined benefit plans
 
under IFRS Accounting
 
Standards, primarily because
 
of the obligation to
 
accrue interest on
 
the
participants’ retirement savings accounts and the payment of
 
lifetime pension benefits.
Actuarial valuations in accordance
 
with Swiss pension law
 
are performed regularly. Should an
 
underfunded situation on
this basis occur, the
 
Pension Foundation Board of the respective
 
plan is required to
 
take the necessary measures to
 
ensure
that full funding can
 
be expected to
 
be restored within
 
a maximum period
 
of
10
 
years. If a Swiss
 
plan were to
 
become
significantly
 
underfunded
 
on
 
a
 
Swiss
 
pension
 
law
 
basis,
 
additional
 
employer
 
and
 
employee
 
contributions
 
could
 
be
required. In this situation, the risk is shared between employer and employees, and the employer is
 
not legally obliged to
cover more than
50
% of the
 
additional contributions required.
 
As of 31 December
 
2023, the technical funding
 
ratio in
accordance with Swiss
 
pension law was
119.2
% at
0.5
% technical interest
 
rate for the
 
UBS Swiss plan
 
and
124.0
% at
1.62
% technical
 
interest
 
rate
 
for
 
the
 
Credit
 
Suisse
 
Swiss
 
plan
 
(UBS
 
Swiss
 
plan
 
31
 
December
 
2022:
119.0
% at
0.5
%
technical interest rate).
The investment strategies of the
 
Swiss plans comply with Swiss pension
 
law, including the rules and regulations
 
relating
to diversification
 
of plan assets,
 
and are derived
 
from the
 
risk budget defined
 
by the Pension
 
Foundation Boards
 
based
on regularly
 
performed
 
asset and
 
liability management
 
analyses. The
 
Pension Foundation
 
Boards strive
 
for a
 
medium-
and long-term balance between assets and liabilities.
As of 31 December
 
2023, the Swiss
 
plans were in
 
surplus situations on
 
an IFRS Accounting
 
Standards measurement basis,
as the fair value of the plan assets exceeded the defined benefit obligation (DBO) by USD
6,332
m for the UBS Swiss plan
and USD
3,150
m for the Credit Suisse
 
Swiss plan (UBS Swiss plan 31 December
 
2022: USD
7,848
m, Credit Suisse Swiss
plan 31 May 2023: USD
3,772
m). However, a surplus
 
is only recognized on
 
the balance sheet
 
to the extent that
 
it does
not
 
exceed
 
the
 
estimated
 
future
 
economic
 
benefit,
 
which
 
equals
 
the
 
difference
 
between
 
the
 
present
 
value
 
of
 
the
estimated
 
future
 
net
 
service
 
cost
 
and
 
the
 
present
 
value
 
of
 
the
 
estimated
 
future
 
employer
 
contributions.
 
As
 
of
 
both
31 December 2023 and 31 December 2022, the
 
estimated future economic benefit of the UBS
 
Swiss plan was zero and
hence no net defined benefit asset was recognized on the balance sheet;
 
as of 31 December 2023 a net defined benefit
asset of USD
88
m was recognized
 
by UBS for
 
prepaid contributions held
 
at the Credit
 
Suisse Swiss plan
 
(31 May 2023:
USD
77
m).
The regular employer
 
contributions in
 
2024 are estimated
 
at USD
549
m for the
 
UBS Swiss
 
plan and USD
283
m for the
Credit Suisse Swiss plan.
Changes to the Credit Suisse Swiss pension plan
In December
 
2023, the
 
Pension Foundation
 
Board
 
of the
 
Credit
 
Suisse
 
Swiss plan
 
decided to
 
align the
 
Swiss
 
pension
scheme to
 
that of
 
the UBS
 
Swiss plan,
 
effective
 
as of
 
1 January
 
2027. On
 
that date,
 
the Credit
 
Suisse Swiss
 
plan
 
will
adopt the plan rules
 
of the UBS Swiss
 
plan. The Credit
 
Suisse Swiss 1e plan
 
will remain in
 
place as of this
 
date, but will
be closed for further
 
contributions. In accordance with IFRS Accounting
 
Standards, these decisions and related mitigating
measures led to an increase in UBS’s pension obligations in Switzerland resulting in a one-time pre-tax loss of USD
245
m
(CHF
207
m) and
 
an offsetting
 
gain in
 
other comprehensive
 
income
 
in the
 
fourth
 
quarter
 
of 2023
 
with
 
no impact
 
on
equity and CET1 capital.
UK pension plans
UBS maintains two major
 
pension plans in the
 
UK. The UBS UK
 
plan is a career
 
-average revalued earnings scheme,
 
and
the Credit
 
Suisse UK
 
plan is
 
a final
 
salary pension
 
scheme.
 
In both
 
plans benefits
 
increase
 
automatically based
 
on UK
price inflation,
 
subject to
 
defined caps.
 
The normal
 
retirement
 
age for
 
most participants
 
is
60
 
or
65
. The
 
plans provide
guaranteed lifetime
 
pension benefits
 
to participants
 
upon retirement.
 
The UK
 
plans have
 
been closed
 
to new
 
entrants
for more than 20 years and participants are no longer accruing benefits for current
 
or future service. Instead, employees
participate in the UK defined contribution plans.
The governance responsibility for each UK plan
 
lies jointly with the Pension Trustee Board
 
of the respective plan and UBS.
Both plans
 
invest in
 
diversified
 
portfolios of
 
financial
 
assets.
 
The
 
UBS UK
 
plan
 
assets
 
include
 
swaps to
 
hedge
 
the
 
risk
between expected and actual longevity.
In 2019, UBS and the UBS UK
 
Pension Trustee Board entered an
 
arrangement whereby a collateral pool
 
was established
to provide security for
 
the UBS UK
 
pension fund. The
 
value of the collateral
 
pool as of
 
31
December 2023 was USD
260
m
(31
December 2022: USD
292
m) and includes
 
corporate bonds, government-related debt
 
instruments and other
 
financial
assets. The
 
arrangement provides
 
the Pension
 
Trustee Board
 
dedicated access
 
to a
 
pool of
 
assets in
 
the event
 
of UBS’s
insolvency or not paying a required funding contribution.
 
The
 
employer
 
contributions
 
to the
 
UBS UK
 
plan reflect
 
agreed-upon
 
funding
 
contributions,
 
determined
 
based
 
on the
most recent
 
actuarial valuation
 
using assumptions
 
agreed by
 
the Pension
 
Trustee
 
Board and
 
UBS. In
 
2023, UBS
 
made
funding contributions
 
of USD
19
m to
 
the UBS
 
UK plan
 
(2022: USD
5
m). The
 
employer contributions
 
in 2024
 
are estimated
at USD
19
m for the UBS UK plan, subject to regular funding reviews during
 
the year.
 
No contributions
 
were paid
 
to the
 
Credit Suisse
 
UK plan
 
in 2023
 
or are
 
planned for
 
2024. The
 
trustees of
 
the
 
Credit
Suisse UK
 
Pension Fund
 
have agreed
 
to meet
 
the cost
 
of the
 
active members’
 
contributions
 
into the
 
Credit Suisse
 
UK
defined
 
contribution
 
plan
 
from
 
the
 
pension
 
assets
 
of
 
the
 
Credit
 
Suisse
 
UK
 
defined
 
benefit
 
plan,
 
which
 
amounted
 
to
USD
7
m in 2023, and such payments are expected to continue
 
in 2024.
US defined benefit plans
There are
 
two main
 
UBS US
 
pension plans
 
and two
 
main Credit
 
Suisse US
 
defined benefit
 
plans, each
 
of which
 
has a
normal retirement age of
65
. All main plans
 
were closed to new entrants more than
 
20 years ago. Since
 
they closed, new
employees have participated in defined contribution plans.
One of
 
the
 
UBS defined
 
benefit
 
plans
 
is a
 
contribution-based
 
plan
 
in which
 
each
 
participant accrues
 
a
 
percentage
 
of
salary in a retirement
 
savings account. The
 
retirement savings account
 
is credited annually with
 
interest based on
 
a rate
that is linked to the average yield on one-year US government bonds. For the other UBS defined benefit plan, retirement
benefits accrue based on the
 
career-average earnings of each individual
 
plan participant. Former employees with
 
vested
benefits can take
 
a lump sum
 
payment
 
or a lifetime
 
annuity. In one
 
of the Credit
 
Suisse defined
 
benefit plans, benefits
are accrued based on
 
compensation and credited service. The other
 
Credit Suisse defined benefit plan
 
provides unfunded
health-care benefits for eligible retired employees.
As required under
 
applicable pension
 
laws, the
 
pension plans
 
have fiduciaries
 
who, together
 
with UBS, are
 
responsible
for the governance
 
of the plans. Each
 
plan’s fiduciaries are
 
responsible for the
 
investment decisions with
 
respect to the
plan assets.
 
The plan assets of the funded plans are invested in diversified
 
portfolios of financial assets.
The
 
employer
 
contributions
 
in 2024
 
are
 
estimated
 
at
 
USD
12
m for
 
the
 
UBS
 
US plans
 
and at
 
USD
10
m for
 
the
 
Credit
Suisse US plans.
German pension plans
There are two major unfunded UBS defined
 
benefit plans in Germany.
 
The normal retirement age
 
is
65
 
and benefits are
paid directly by UBS. In the larger of
 
the two plans each participant accrues
 
a percentage of salary in a retirement savings
account. The accumulated account balance
 
of the participant is credited
 
on an annual basis with guaranteed
 
interest at
a rate of
5
%. The plan has been closed to new
 
entrants, and all participants younger than the age of 55
 
as of June 2021
no
 
longer
 
accrue
 
benefits.
 
In
 
the
 
other
 
plan,
 
amounts
 
are
 
accrued
 
annually
 
based
 
on
 
employee
 
elections
 
related
 
to
variable compensation. For this plan, the accumulated account balance is credited on an annual basis with a guaranteed
interest rate of
6
% for amounts accrued before 2010, of
4
% for amounts accrued from 2010 to 2017, and of
0.9
% for
amounts accrued after
 
2017. Both plans are
 
subject to German
 
pension law,
 
whereby the
 
responsibility to pay
 
pension
benefits when they are due resides entirely with UBS. A portion of the pension payments is directly increased in line with
price inflation.
In
 
June
 
2021,
 
UBS
 
implemented
 
a
 
new
 
funded
 
pension
 
plan
 
with
 
interest
 
credited
 
to
 
participants
 
equal
 
to
 
actual
investment returns
 
with a
 
guaranteed
 
minimum of
0
%. The
 
plan was
 
implemented retrospectively
 
for new
 
hires since
June 2018 and for all eligible active participants younger
 
than 55 from July 2021. Each participant accrues
 
a percentage
of salary in a retirement savings account.
The employer contributions in 2024 are estimated at USD
14
m for the UBS German plans.
 
There are no major Credit Suisse defined benefit plans in
 
Germany.
Financial information by plan
The tables
 
below provide
 
an analysis
 
of the
 
movement
 
in the
 
net asset
 
/ liability
 
recognized
 
on the
 
balance sheet
 
for
defined benefit plans, as well as an analysis of amounts recognized
 
in net profit and in
Other comprehensive income
.
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Defined benefit plans
USD m
Swiss plans
UK plans
US and German plans
Total
31.12.23
1
31.12.22
31.12.23
1
31.12.22
31.12.23
1
31.12.22
31.12.23
1
31.12.22
Defined benefit obligation at the beginning of the year
22,272
27,398
2,166
4,105
1,375
1,740
25,813
33,242
Defined benefit obligation recognized upon the acquisition
 
of the Credit Suisse Group
15,142
0
954
0
1,025
0
17,121
0
Current service cost
567
416
1
0
5
5
573
420
Interest expense
680
344
139
67
88
35
907
446
Plan participant contributions
370
257
0
0
0
0
370
257
Remeasurements
4,446
(4,151)
195
(1,474)
37
(267)
4,678
(5,891)
of which: actuarial (gains) / losses due to changes in demographic
 
assumptions
76
3
(79)
(6)
(2)
1
(5)
(2)
of which: actuarial (gains) / losses due to changes in financial
 
assumptions
2,886
(4,666)
128
(1,575)
51
(279)
3,064
(6,520)
of which: experience (gains) / losses
2
1,484
512
146
107
(12)
11
1,619
631
Past service cost related to plan amendments
245
0
0
0
0
0
245
0
Curtailments
(29)
(20)
0
0
0
0
(29)
(20)
Benefit payments
(2,309)
(1,454)
(125)
(123)
(177)
(111)
(2,611)
(1,687)
Termination benefits
21
0
0
0
0
0
21
0
Other movements
0
(5)
0
0
0
0
0
(5)
Foreign currency translation
3,516
(513)
137
(408)
14
(28)
3,667
(949)
Defined benefit obligation at the end of the year
44,922
22,272
3,467
2,166
2,368
1,375
50,756
25,813
of which: amounts owed to active members
24,007
11,927
97
65
330
169
24,435
12,160
of which: amounts owed to deferred members
0
0
1,655
656
904
528
2,558
1,184
of which: amounts owed to retirees
20,915
10,345
1,715
1,445
1,134
678
23,763
12,469
of which: funded plans
44,922
22,272
3,467
2,166
1,797
1,011
50,186
25,449
of which: unfunded plans
0
0
0
0
571
363
571
363
Fair value of plan assets at the beginning of the year
30,119
33,975
2,488
4,297
1,039
1,329
33,646
39,601
Fair value of plan assets recognized upon the acquisition of the Credit Suisse Group
18,914
0
1,499
0
824
0
21,236
0
Return on plan assets excluding interest income
1,234
(3,248)
153
(1,312)
66
(223)
1,453
(4,782)
Interest income
916
485
173
70
70
31
1,159
586
Employer contributions
 
690
685
12
5
29
16
732
706
Plan participant contributions
370
257
0
0
0
0
370
257
Benefit payments
(2,309)
(1,454)
(125)
(123)
(177)
(111)
(2,611)
(1,687)
Administration expenses, taxes and premiums paid
(19)
(12)
(1)
0
(6)
(3)
(27)
(16)
Other movements
2
(2)
0
0
0
0
2
(2)
Foreign currency translation
4,485
(567)
165
(450)
4
0
4,654
(1,017)
Fair value of plan assets at the end of the year
54,404
30,119
4,364
2,488
1,849
1,039
60,616
33,646
Surplus / (deficit)
9,482
7,848
897
321
(519)
(335)
9,860
7,834
Asset ceiling effect at the beginning of the year
7,848
6,577
0
0
0
0
7,848
6,577
Asset ceiling effect recognized upon the acquisition of
 
the Credit Suisse Group
3,695
0
0
0
0
0
3,695
0
Interest expense on asset ceiling effect
225
135
0
0
0
0
225
135
Asset ceiling effect excluding interest expense and foreign currency
 
translation on
asset ceiling effect
(3,336)
1,189
0
0
0
0
(3,336)
1,189
Foreign currency translation
963
(54)
0
0
0
0
963
(54)
Asset ceiling effect at the end of the year
9,394
7,848
0
0
0
0
9,394
7,848
Net defined benefit asset / (liability) of major plans
88
0
897
321
(519)
(335)
466
(14)
Net defined benefit asset / (liability) of remaining plans
(173)
(100)
Total net defined benefit asset / (liability)
293
(114)
of which: Net defined benefit asset
1,088
355
of which: Net defined benefit liability
3
(795)
(469)
1 Including Credit Suisse
 
from 31 May 2023.
 
2 Experience (gains) /
 
losses are a component
 
of actuarial remeasurements of
 
the defined benefit obligation
 
and reflect the effects
 
of differences between the
 
previous
actuarial assumptions and what has actually occurred.
 
3 Refer to Note 19c.
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Income statement – expenses related to defined benefit plans
1
USD m
Swiss plans
UK plans
US and German plans
Total
For the year ended
31.12.23
2
31.12.22
31.12.23
2
31.12.22
31.12.23
2
31.12.22
31.12.23
2
31.12.22
Current service cost
567
416
1
0
5
5
573
420
Interest expense related to defined benefit obligation
680
344
139
67
88
35
907
446
Interest income related to plan assets
(916)
(485)
(173)
(70)
(70)
(31)
(1,159)
(586)
Interest expense on asset ceiling effect
225
135
0
0
0
0
225
135
Administration expenses, taxes and premiums paid
19
12
1
0
6
3
27
16
Past service cost related to plan amendments
245
0
0
0
0
0
245
0
Curtailments
(29)
(20)
0
0
0
0
(29)
(20)
Termination benefits
21
0
0
0
0
0
21
0
Other movements
(2)
0
0
0
0
0
(2)
0
Net periodic expenses recognized in net profit for major plans
811
402
(32)
(3)
30
12
808
411
Net periodic expenses recognized in net profit for remaining plans
3
38
25
Total net periodic expenses recognized in net profit
847
437
1 Refer to Note 7.
 
2 Including Credit Suisse from 31 May 2023.
 
3 Includes differences between actual and estimated performance award accruals.
The table below provides information about the duration
 
of the DBO and the timing for expected benefit payments.
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Swiss plans
UK plans
US and German plans
31.12.23
31.12.22
31.12.23
31.12.22
31.12.23
31.12.22
Duration of the defined benefit obligation (in years)
1
13.1
13.1
15.1
13.7
8.3
7.9
Maturity analysis of benefits expected to be paid
USD m
Benefits expected to be paid within 12 months
3,056
1,294
182
107
221
123
Benefits expected to be paid between 1 and 3 years
5,149
2,657
337
234
412
232
Benefits expected to be paid between 3 and 6 years
7,671
3,977
563
384
558
335
Benefits expected to be paid between 6 and 11 years
12,080
6,743
1,032
667
847
502
Benefits expected to be paid between 11 and 16 years
10,513
6,223
1,066
667
632
388
Benefits expected to be paid in more than 16 years
34,221
22,446
4,339
2,570
925
516
1 The duration of the defined benefit obligation represents a weighted average across UBS and
 
Credit Suisse plans.
Actuarial assumptions
The
 
actuarial
 
assumptions
 
used
 
for
 
the
 
defined
 
benefit
 
plans
 
are
 
based on
 
the
 
economic
 
conditions
 
prevailing
 
in the
jurisdiction in
 
which they
 
are
 
offered.
 
Changes in
 
the defined
 
benefit obligation
 
are
 
most sensitive
 
to changes
 
in the
discount rate. The discount
 
rate is based on
 
the yield of high-quality
 
corporate bonds quoted
 
in an active market
 
in the
currency of the
 
respective plan. A decrease
 
in the discount curve
 
increases the DBO. UBS
 
regularly reviews
 
the actuarial
assumptions used in calculating the DBO to determine their
 
continuing relevance.
›
Refer to Note 1a item 5 for a description
 
of the accounting policy for defined benefit plans
The tables below show the significant actuarial assumptions
 
used in calculating the DBO at the end of the year.
 
 
 
 
 
 
 
 
 
 
Significant actuarial assumptions of
 
defined benefit plans
1
Swiss plans
UK plans
US plans
German plans
In %
31.12.23
31.12.22
31.12.23
31.12.22
31.12.23
31.12.22
31.12.23
31.12.22
Discount rate
1.48
2.34
4.79
5.02
4.75
4.92
3.28
3.81
Rate of pension increase
0.00
0.00
2.94
3.08
0.00
0.00
2.10
2.20
Rate of interest credit on retirement savings
 
2.54
3.39
0.00
0.00
6.28
2
5.73
2
0.00
0.00
1 Represents weighted average across UBS and Credit Suisse plans.
 
2 Only applicable to one of the UBS US pension plans.
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Mortality tables and life expectancies for
 
major plans
Life expectancy at age 65 for a male member currently
aged 65
aged 45
Country
Mortality table
31.12.23
31.12.22
31.12.23
31.12.22
Switzerland
BVG 2020 G with CMI 2022 projections
1
21.8
21.7
23.5
23.4
UK
S3PA with CMI 2022 projections
2
22.2
3
23.5
23.4
3
24.6
USA
Pri-2012 with MP-2021 projection scale
22.0
22.0
23.4
23.3
Germany
Dr. K. Heubeck 2018 G
20.8
20.6
23.5
23.4
Life expectancy at age 65 for a female member currently
aged 65
aged 45
Country
Mortality table
31.12.23
31.12.22
31.12.23
31.12.22
Switzerland
BVG 2020 G with CMI 2022 projections
1
23.5
23.5
25.1
25.1
UK
S3PA with CMI 2022 projections
2
24.0
4
25.0
25.7
4
26.4
USA
Pri-2012 with MP-2021 projection scale
23.5
23.4
24.8
24.8
Germany
Dr. K. Heubeck 2018 G
24.2
24.0
26.4
26.3
1 In 2022, BVG 2020 G
 
with CMI 2021 projections was
 
used.
 
2 In 2022, S3PA
 
with CMI 2021 projections was
 
used.
 
3 UK Credit Suisse plan male
 
aged 65:
23.1
 
years and aged 45:
24.3
 
years.
 
4 UK Credit
Suisse plan female aged 65:
24.7
 
years and aged 45:
26.1
 
years.
Sensitivity analysis of significant actuarial assumptions
The table
 
below presents
 
a sensitivity
 
analysis for
 
each significant
 
actuarial assumption,
 
showing how
 
the DBO
 
would
have been affected
 
by changes in
 
the relevant
 
actuarial assumption that
 
were reasonably
 
possible at the
 
balance sheet
date.
 
Unforeseen
 
circumstances
 
may
 
arise,
 
which
 
could
 
result
 
in
 
variations
 
that
 
are
 
outside
 
the
 
range
 
of
 
alternatives
deemed
 
reasonably
 
possible.
 
Caution
 
should
 
be
 
used
 
in
 
extrapolating
 
the
 
sensitivities
 
below
 
on
 
the
 
DBO,
 
as
 
the
sensitivities may not be linear.
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Sensitivity analysis of significant actuarial
 
assumptions
1
Increase / (decrease) in defined benefit obligation
Swiss plans
UK plans
US and German plans
USD m
31.12.23
31.12.22
31.12.23
31.12.22
31.12.23
31.12.22
Discount rate
Increase by 50 basis points
(2,365)
(1,128)
(243)
(141)
(91)
(51)
Decrease by 50 basis points
2,668
1,269
272
157
98
55
Rate of pension increase
Increase by 50 basis points
1,894
877
204
127
10
4
Decrease by 50 basis points
–
2
–
2
(189)
(118)
(9)
(3)
Rate of interest credit on retirement savings
Increase by 50 basis points
334
178
–
3
–
3
9
9
Decrease by 50 basis points
(334)
(178)
–
3
–
3
(8)
(8)
Life expectancy
Increase in longevity by one additional year
1,315
593
108
65
64
39
1 The sensitivity analyses are based on a change in one
 
assumption while holding all other assumptions constant, so that interdependencies between
 
the assumptions are excluded.
 
2 As the assumed rate of pension
increase was
0
% as of 31 December 2023 and as
 
of 31 December 2022, a downward change
 
in assumption is not applicable.
 
3 As the UK plans do not provide interest
 
credits on retirement savings, a change
 
in
assumption is not applicable.
Fair value of plan assets
The tables below
 
provide information
 
about the composition
 
and fair value
 
of plan assets
 
of the major
 
defined benefit
plans.
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Composition and fair value of plan assets
Swiss defined benefit plans
31.12.23
31.12.22
Fair value
Plan asset
allocation %
Fair value
Plan asset
allocation %
USD m
Quoted
in an active
market
Other
Total
Quoted
in an active
market
Other
Total
Cash and cash equivalents
1,205
0
1,205
2
326
0
326
1
Equity securities
 
Domestic
0
24
24
0
0
0
0
0
 
Foreign
0
2,132
2,132
4
0
0
0
0
Bonds
 
Domestic, AAA to BBB–
100
0
100
0
0
0
0
0
 
Foreign, AAA to BBB–
51
0
51
0
0
0
0
0
Real estate / property
Domestic
0
6,195
6,195
11
0
3,783
3,783
13
Foreign
0
1,017
1,017
2
0
919
919
3
Investment funds
Equity
 
Domestic
1,376
0
1,376
3
743
0
743
2
Foreign
8,317
2,196
10,513
19
4,964
2,171
7,134
24
Bonds
1
Domestic, AAA to BBB–
7,952
0
7,952
15
3,760
0
3,760
12
Domestic, below BBB–
1
0
1
0
0
0
0
0
Foreign, AAA to BBB–
13,497
0
13,497
25
6,031
0
6,031
20
Foreign, below BBB–
1,249
0
1,249
2
1,062
0
1,062
4
Real estate
Domestic
1,906
0
1,906
4
0
0
0
0
Foreign
537
79
616
1
0
0
0
0
Other
1,960
3,373
5,333
10
1,540
3,547
5,086
17
Other investments
667
569
1,236
2
624
651
1,275
4
Total fair value of plan assets
38,817
15,586
54,404
100
19,049
11,071
30,119
100
31.12.23
31.12.22
Total fair value of plan assets
54,404
30,119
of which:
2
Bank accounts at UBS
666
337
UBS debt instruments
211
50
UBS shares
72
27
Securities lent to UBS
3
827
871
Property occupied by UBS
108
90
Derivative financial instruments, counterparty UBS
3
534
76
1 The bond credit ratings
 
are primarily based on S&P’s
 
credit ratings. Ratings AAA to
 
BBB– and below BBB– represent investment
 
grade and non-investment grade
 
ratings, respectively.
 
In cases where credit ratings
from other rating agencies
 
were used, these were
 
converted to the equivalent
 
rating in S&P’s
 
rating classification.
 
2 Bank accounts at UBS
 
encompass accounts in the name
 
of the Swiss pension funds.
 
The other
positions disclosed in the table encompass both direct investments in UBS instruments and
 
indirect investments, i.e., those made through funds that the pension fund invests in.
 
3 Securities lent to UBS and derivative
financial instruments are presented
 
gross of any collateral.
 
Securities lent to UBS
 
were fully covered by
 
collateral as of 31
 
December 2023 and
 
31 December 2022. Net
 
of collateral, derivative
 
financial instruments
amounted to negative USD
33
m as of 31 December 2023 (31 December 2022: negative USD
8
m).
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Composition and fair value of plan assets
 
(continued)
UK defined benefit plans
31.12.23
31.12.22
Fair value
Plan asset
allocation %
Fair value
Plan asset
allocation %
USD m
Quoted
in an active
market
Other
Total
Quoted
in an active
market
Other
Total
Cash and cash equivalents
225
0
225
5
104
0
104
4
Bonds
1
 
0
Domestic, AAA to BBB–
3,619
0
3,619
83
1,729
0
1,729
69
Domestic, below BBB–
7
0
7
0
0
0
0
0
Foreign, AAA to BBB–
509
0
509
12
297
0
297
12
Foreign, below BBB–
0
0
0
0
7
0
7
0
Investment funds
Equity
 
Domestic
9
3
12
0
19
3
22
1
Foreign
234
0
234
5
366
0
366
15
Bonds
1
Domestic, AAA to BBB–
310
38
348
8
367
90
457
18
Domestic, below BBB–
6
0
6
0
1
0
1
0
Foreign, AAA to BBB–
97
0
97
2
90
0
90
4
Foreign, below BBB–
93
0
93
2
114
0
114
5
Real estate
Domestic
61
0
61
1
64
0
64
3
Foreign
4
12
16
0
6
31
36
1
Other
64
0
64
1
(280)
0
(280)
(11)
Repurchase agreements
(947)
0
(947)
(22)
(612)
0
(612)
(25)
Other investments
15
5
20
0
66
27
94
4
Total fair value of plan assets
4,306
58
4,364
100
2,336
151
2,488
100
1 The bond credit ratings
 
are primarily based on S&P’s
 
credit ratings. Ratings AAA to
 
BBB– and below BBB– represent investment
 
grade and non-investment grade
 
ratings, respectively.
 
In cases where credit ratings
from other rating agencies were used, these were converted to the equivalent rating in S&P’s
 
rating classification.
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
US and German defined benefit plans
31.12.23
31.12.22
Fair value
Plan asset
allocation %
Fair value
Plan asset
allocation %
USD m
Quoted
in an active
market
Other
Total
Quoted
in an active
market
Other
Total
Cash and cash equivalents
32
0
32
2
7
0
7
1
Equity
Domestic
54
0
54
3
55
0
55
5
Foreign
23
0
23
1
24
0
24
2
Bonds
1
Domestic, AAA to BBB–
308
0
308
17
359
0
359
35
Domestic, below BBB–
3
0
3
0
4
0
4
0
Foreign, AAA to BBB–
51
0
51
3
74
0
74
7
Foreign, below BBB–
2
0
2
0
3
0
3
0
Investment funds
Equity
 
Domestic
51
0
51
3
27
0
27
3
Foreign
82
18
100
5
33
0
33
3
Bonds
1
Domestic, AAA to BBB–
552
300
853
46
266
0
266
26
Domestic, below BBB–
172
41
213
12
109
0
109
10
Foreign, AAA to BBB–
75
14
89
5
2
0
2
0
Foreign, below BBB–
9
0
9
1
5
0
5
0
Real estate
Domestic
1
9
10
1
0
11
11
1
Foreign
2
0
2
0
0
0
0
0
Other
51
0
52
3
54
0
54
5
Other investments
(8)
5
(3)
0
5
1
6
1
Total fair value of plan assets
1,461
388
1,849
100
1,027
12
1,039
100
1 The bond credit ratings
 
are primarily based on S&P’s
 
credit ratings. Ratings AAA to
 
BBB– and below BBB– represent investment
 
grade and non-investment grade
 
ratings, respectively.
 
In cases where credit ratings
from other rating agencies were used, these were converted to the equivalent rating in S&P’s
 
rating classification.
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Other comprehensive income – gains / (losses) on defined benefit plans
 
USD m
Swiss plans
UK plans
US and German plans
Total
For the year ended
31.12.23
1
31.12.22
31.12.23
1
31.12.22
31.12.23
1
31.12.22
31.12.23
1
31.12.22
Remeasurement of defined benefit obligation
(4,446)
4,151
(195)
1,474
(37)
267
(4,678)
5,891
of which: change in discount rate assumption
(3,278)
5,414
(165)
1,451
(51)
317
(3,495)
7,183
of which: change in rate of pension increase assumption
0
0
38
123
1
(5)
39
118
of which: change in rate of interest credit on retirement savings
 
assumption
479
(718)
0
0
(9)
(82)
470
(800)
of which: change in life expectancy
0
0
79
5
0
(1)
79
4
of which: change in other actuarial assumptions
(162)
(33)
0
1
10
48
(152)
16
of which: experience gains / (losses)
2
(1,484)
(512)
(146)
(107)
12
(11)
(1,619)
(631)
Return on plan assets excluding interest income
1,234
(3,248)
153
(1,312)
66
(223)
1,453
(4,782)
Asset ceiling effect excluding interest expense and foreign currency
 
translation
3,336
(1,189)
0
0
0
0
3,336
(1,189)
Total gains / (losses) recognized in other comprehensive income for major plans
124
(285)
(41)
162
28
43
111
(80)
Total gains / (losses) recognized in other comprehensive income for remaining plans
(2)
7
Total gains / (losses) recognized in other comprehensive income
3
110
(73)
1 Including Credit
 
Suisse from 31
 
May 2023.
 
2 Experience (gains) /
 
losses are a
 
component of actuarial remeasurements
 
of the defined
 
benefit obligation and
 
reflect the effects
 
of differences between
 
the previous
actuarial assumptions and what has actually occurred.
 
3 Refer to the “Statement of comprehensive income.”
 
 
b) Defined contribution plans
UBS sponsors several defined contribution
 
plans, with the most significant
 
plans in the US and the
 
UK. UBS’s obligation
is limited to its contributions
 
made in accordance
 
with each plan, which
 
may include direct
 
contributions and matching
contributions. Employer contributions
 
to defined contribution
 
plans are recognized
 
as an expense
 
and were
 
USD
386
m
for the UBS plans and USD
128
m for the Credit Suisse plans in 2023 (2022:
 
USD
357
m for the UBS plans).
›
Refer to Note 7 for more information
c) Related-party disclosure
UBS is
 
the principal
 
provider of
 
banking services
 
for the
 
pension funds
 
of UBS
 
and Credit
 
Suisse in
 
Switzerland. In
 
this
capacity,
 
UBS is engaged
 
to execute
 
most of the
 
pension funds’
 
banking activities.
 
These activities
 
can include, but
 
are
not limited to, trading,
 
securities lending and borrowing and derivative
 
transactions. The non-Swiss pension funds do
 
not
have a similar banking relationship with UBS.
 
During 2023, UBS received USD
35
m in fees for banking services from the
major UBS
 
plans and
 
USD
11
m from
 
the major
 
Credit Suisse
 
plans (2022:
 
USD
36
m from
 
the major
 
UBS plans).
 
As of
31
December 2023,
 
the major
 
UBS plans
 
held USD
417
m in
 
UBS shares
 
and major
 
Credit Suisse
 
plans held
 
USD
26
m
(31
December 2022: Major UBS plans held USD
265
m).
›
Refer to the “Composition and fair value of
 
plan assets” table in Note 27a for more information
 
about fair value of investments in
UBS instruments held by the Swiss pension funds