XML 208 R42.htm IDEA: XBRL DOCUMENT v3.25.1
Post-employment benefit plans
 12 Months Ended
Dec. 31, 2024
Disclosure Post-employment Benefit Plans [Line Items]  
Post-employment benefit plans [text block]
Note 26
 
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 located in Switzerland,
 
with smaller plans mainly in UK, US and Germany. The level of
benefits depends on the specific plan rules.
Major Swiss pension plans
The major 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
144,060
 
(USD
158,639
), 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
 
2024, the technical funding
 
ratio in
accordance with Swiss pension law was
120.6
% at a
0.5
% technical interest rate for the UBS Swiss plan and
125.7
% at
a
1.31
% technical interest rate
 
for the Credit Suisse Swiss
 
plan (UBS Swiss plan 31 December
 
2023:
119.2
% at a
0.5
%
technical interest rate, Credit Suisse Swiss plan 31 December
 
2023:
124.0
% at a
1.62
% 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
 
2024, 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
4,724
m for the UBS Swiss plan
and USD
2,900
m for the Credit Suisse
 
Swiss plan (UBS Swiss plan 31 December
 
2023: USD
6,332
m, Credit Suisse Swiss
plan 31 December 2023: USD
3,150
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 2024 and 31 December 2023, 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 2024 a net defined benefit
asset of
 
USD
28
m was
 
recognized by
 
UBS for
 
prepaid contributions
 
held at
 
the Credit
 
Suisse Swiss
 
plan (31 December
2023: USD
88
m).
The regular employer
 
contributions in
 
2025 are estimated
 
at USD
519
m for the
 
UBS Swiss
 
plan and USD
239
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.
Financial information
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
.
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Net asset / liability of defined benefit
 
plans
USD m
Major Swiss plans
31.12.24
31.12.23
1
Defined benefit obligation at the beginning of the year
44,922
22,272
Defined benefit obligation recognized upon the acquisition
 
of the Credit Suisse Group
15,142
Current service cost
763
567
Interest expense
564
680
Plan participant contributions
446
370
Remeasurements
4,017
4,446
of which: actuarial (gains) / losses due to changes in demographic
 
assumptions
25
76
of which: actuarial (gains) / losses due to changes in financial
 
assumptions
2,723
2,886
of which: experience (gains) / losses
2
1,269
1,484
Past service cost related to plan amendments
0
245
Curtailments
(104)
(29)
Benefit payments
(2,665)
(2,309)
Termination benefits
6
21
Foreign currency translation
(3,332)
3,516
Defined benefit obligation at the end of the year
44,617
44,922
of which: amounts owed to active members
24,576
24,007
of which: amounts owed to deferred members
0
0
of which: amounts owed to retirees
20,041
20,915
of which: funded plans
44,617
44,922
of which: unfunded plans
0
0
Fair value of plan assets at the beginning of the year
54,404
30,119
Fair value of plan assets recognized upon the acquisition of the Credit Suisse Group
18,914
Return on plan assets excluding interest income
2,596
1,234
Interest income
700
916
Employer contributions
 
811
690
Plan participant contributions
446
370
Benefit payments
(2,665)
(2,309)
Administration expenses, taxes and premiums paid
(27)
(19)
Other movements
0
2
Foreign currency translation
(4,024)
4,485
Fair value of plan assets at the end of the year
52,241
54,404
Surplus / (deficit)
7,624
9,482
Asset ceiling effect at the beginning of the year
9,394
7,848
Asset ceiling effect recognized upon the acquisition of
 
the Credit Suisse Group
3,695
Interest expense on asset ceiling effect
128
225
Asset ceiling effect excluding interest expense and foreign currency
 
translation on asset ceiling effect
(1,237)
(3,336)
Foreign currency translation
(688)
963
Asset ceiling effect at the end of the year
7,596
9,394
Net defined benefit asset / (liability) of major Swiss plans
28
88
Other plans
Net defined benefit asset / (liability) of other plans
3
131
205
Total net defined benefit asset / (liability)
159
293
of which: Net defined benefit asset
922
1,088
of which: Net defined benefit liability
4
(763)
(795)
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 Mainly relates to UK, US and German plans.
 
4 Refer to Note 19c.
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Income statement – expenses related to defined benefit plans
1
USD m
For the year ended
Major Swiss plans
31.12.24
31.12.23
2
Current service cost
763
567
Interest expense related to defined benefit obligation
564
680
Interest income related to plan assets
(700)
(916)
Interest expense on asset ceiling effect
128
225
Administration expenses, taxes and premiums paid
27
19
Past service cost related to plan amendments
0
245
Curtailments
(104)
(29)
Termination benefits
6
21
Other movements
3
3
(2)
Net periodic expenses recognized in net profit for major Swiss plans
687
811
Other plans
Net periodic expenses recognized in net profit for other plans
44
36
Total net periodic expenses recognized in net profit
731
847
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.
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Major Swiss defined benefit plans
31.12.24
31.12.23
Duration of the defined benefit obligation (in years)
1
13.3
13.1
Maturity analysis of benefits expected to be paid
USD m
Benefits expected to be paid within 12 months
2,911
3,056
Benefits expected to be paid between 1 and 3 years
4,812
5,149
Benefits expected to be paid between 3 and 6 years
7,231
7,671
Benefits expected to be paid between 6 and 11 years
11,203
12,080
Benefits expected to be paid between 11 and 16 years
9,621
10,513
Benefits expected to be paid in more than 16 years
30,398
34,221
1 The duration of the defined benefit obligation represents a weighted average across the 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
 
major Swiss defined benefit plans
1
In %
31.12.24
31.12.23
Discount rate
0.92
1.48
Rate of salary increase
2.80
2.36
Rate of pension increase
0.00
0.00
Rate of interest credit on retirement savings
 
2.02
2.54
1 Represents weighted average across the UBS and Credit Suisse plans.
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
aged 65
aged 45
Swiss mortality table: BVG 2020 G with CMI 2023 projections
1
31.12.24
31.12.23
31.12.24
31.12.23
Life expectancy at age 65 for a male member currently
21.9
21.8
23.5
23.5
Life expectancy at age 65 for a female member currently
23.6
23.5
25.2
25.1
1 In 2023, BVG 2020 G with CMI 2022 projections was used.
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 of major Swiss defined
 
benefit plans
1
Increase / (decrease) in defined benefit obligation
USD m
31.12.24
31.12.23
Discount rate
Increase by 50 basis points
(2,462)
(2,365)
Decrease by 50 basis points
2,790
2,668
Rate of salary increase
Increase by 50 basis points
255
248
Decrease by 50 basis points
(256)
(246)
Rate of pension increase
Increase by 50 basis points
1,947
1,894
Decrease by 50 basis points
–
2
–
2
Rate of interest credit on retirement savings
Increase by 50 basis points
374
334
Decrease by 50 basis points
(374)
(334)
Life expectancy
Increase in longevity by one additional year
1,381
1,315
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 2024 and as of 31 December 2023, a downward change in assumption is not applicable.
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Composition and fair value of Swiss
 
defined benefit plan assets
31.12.24
31.12.23
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
911
0
911
2
1,205
0
1,205
2
Equity securities
 
Domestic
0
0
0
0
0
24
24
0
 
Foreign
0
1,425
1,425
3
0
2,132
2,132
4
Bonds
 
Domestic, AAA to BBB–
156
0
156
0
100
0
100
0
 
Foreign, AAA to BBB–
0
0
0
0
51
0
51
0
Real estate / property
Domestic
0
5,967
5,967
11
0
6,195
6,195
11
Foreign
0
1,086
1,086
2
0
1,017
1,017
2
Investment funds
Equity
 
Domestic
1,300
0
1,300
2
1,376
0
1,376
3
Foreign
8,520
2,072
10,592
20
8,317
2,196
10,513
19
Bonds
1
Domestic, AAA to BBB–
6,921
0
6,921
13
7,952
0
7,952
15
Domestic, below BBB–
9
0
9
0
1
0
1
0
Foreign, AAA to BBB–
12,886
0
12,886
25
13,497
0
13,497
25
Foreign, below BBB–
1,393
0
1,393
3
1,249
0
1,249
2
Real estate
Domestic
1,938
0
1,938
4
1,906
0
1,906
4
Foreign
451
117
568
1
537
79
616
1
Other
1,396
3,383
4,780
9
1,960
3,373
5,333
10
Other investments
475
1,833
2,308
4
667
569
1,236
2
Total fair value of plan assets
36,357
15,884
52,241
100
38,817
15,586
54,404
100
31.12.24
31.12.23
Total fair value of plan assets
52,241
54,404
of which: Investments in UBS instruments
2
Bank accounts at UBS
926
666
UBS debt instruments
238
211
UBS shares
64
72
Securities lent to UBS
3
956
827
Property occupied by UBS
73
108
Derivative financial instruments, counterparty UBS
3
(126)
534
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 2024 and
 
31 December 2023. Net
 
of collateral, derivative
 
financial instruments
amounted to negative USD
70
m as of 31 December 2024 (31 December 2023: negative USD
33
m).
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Other comprehensive income – gains / (losses) on defined benefit plans
 
USD m
For the year ended
Major Swiss plans
31.12.24
31.12.23
1
Remeasurement of defined benefit obligation
(4,017)
(4,446)
of which: change in discount rate assumption
(2,846)
(3,278)
of which: change in rate of salary increase assumption
(227)
(74)
of which: change in rate of pension increase assumption
0
0
of which: change in rate of interest credit on retirement savings
 
assumption
349
479
of which: change in life expectancy
0
0
of which: change in other actuarial assumptions
(24)
(88)
of which: experience gains / (losses)
2
(1,269)
(1,484)
Return on plan assets excluding interest income
2,596
1,234
Asset ceiling effect excluding interest expense and foreign currency
 
translation
1,237
3,336
Total gains / (losses) recognized in other comprehensive income for major Swiss plans
(184)
124
Other plans
Total gains / (losses) recognized in other comprehensive income for other plans
3
(123)
(15)
Total gains / (losses) recognized in other comprehensive income
4
(307)
110
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 Mainly relates to UK, US and German plans.
 
4 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
578
m
for the UBS plans in 2024 (2023: USD
514
m).
›
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, investment
 
management fees, trading,
 
securities lending and borrowing
 
and derivative transactions. The
non-Swiss pension
 
funds do
 
not have
 
a similar
 
banking relationship
 
with UBS.
 
During 2024,
 
UBS received
 
USD
46
m in
fees for banking
 
services from
 
the major UBS
 
plans (2023: USD
46
m). As of
 
31 December
 
2024, the Swiss,
 
UK and US
post-employment benefit plans held USD
399
m in UBS shares (31 December 2023: USD
443
m).
›
Refer to the “Composition and fair value of
 
Swiss defined benefit plan assets” table in Note
 
26a for more information about fair
value of investments in UBS instruments held
 
by the major Swiss pension funds