RESTRICTED  
  
WT/BFA/W/594  
 
25 July 2022 
(22-5419) Page: 1/26 
Committee on Budget, Finance and Administration  Original: English  
 
   
   
WTO PENSION PLAN 202 1 INTERIM  ACTUARIAL VALUATION  
NOTE BY THE CHAIRMAN OF THE WTOPP MANAGEMENT BOARD  
The WTO Pension Plan undergoes a full actuarial valuation every three years and interim valuations 
in the years between full valuations. The attached interim actuarial valuation is based on 2021 data 
and is the latest actuarial report to be issued by the W TOPP. The last full actuarial valuation was 
completed earlier this year using 2020 data.  
 
The 2021 interim valuation report confirms the important actuarial deficit identified in the 2020 full 
valuation.  
 
Following the identification of an actuarial deficit, the WTOPP Management Board is responsible for 
recommending corrective actions to the G eneral Council (through the Committee on Budget, Finance 
and Administration) to restore an actuarial balance.  
 
The Management Board has started this process and looks forward to engaging further with all 
stakeholders following the presentation of this rep ort and subsequently when elaborating corrective 
actions.  
 
 
Jean-Marc Van Dril, Chair of the Management Board  
 
 
_______________  
 
 
 
 WT/BFA/W/5 94 
 
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Interim Actuarial Valuation Report  
as at 31. December 2021  
World Trade Organization – WTO Pension Plan  
 
 
 
 
 
 
 
 
 
 
 
Contact:   Dr. David Schiess, M.Sc., Senior actuary c -alm AG  
   Email: david.schiess@c -alm.ch; Tel.: +41 (0)71 227 35 35  
 
Date:    April  25, 2022  
 
 WT/BFA/W/5 94 
 
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   Contents  
 
1 Executive Summary  ................................ ................................ ................................ .....................  4 
2 Data  ................................ ................................ ................................ ................................ ...............  7 
2.1 Liability Side  ................................ ................................ ................................ ................................ .........................  7 
2.2 Asset  Side ................................ ................................ ................................ ................................ ...........................  10 
3 Assumptions  ................................ ................................ ................................ ...............................  11 
4 Methods ................................ ................................ ................................ ................................ ...... 12 
5 Results  ................................ ................................ ................................ ................................ ........  13 
5.1 Required Contribution Rate  ................................ ................................ ................................ ........................  13 
5.1.1 Derivation ................................ ................................ ................................ ................................ ...........................  13 
5.1.2  Reconciliation  ................................ ................................ ................................ ................................ ...................  14 
5.1.3 Actuarial Gap  ................................ ................................ ................................ ................................ ....................  15 
5.2 Cash -Flow Analysis  ................................ ................................ ................................ ................................ ......... 17 
A1. Cash -Flow Projections  ................................ ................................ ................................ ...............  21 
A2. Glossary  ................................ ................................ ................................ ................................ ...... 23 
A3. Disclaimer  ................................ ................................ ................................ ................................ ... 26 
 WT/BFA/W/5 94 
 
- 4 – 
 
     1 Executive Summary  
1) This report sets out the results of the interim actuarial valuation completed as 
at 31. December 2021  for the World Trade Organization Pension Plan (WTOPP).  Present report  
2) The last actuarial report is the full actuarial valuation report as at 31 December 
2020.  Last report  
3) As usual  with an interim valuation all methods and assumptions are kept 
unchanged.  Methods and  
assumptions  
4) Hence, the differences to the mentioned last full actuarial valuation report are 
the scope (limited scope in the present interim report) and the due date of the 
assets and insured population data.  Differences to  
last report  
5) The funding  principle of WTOPP is that the existing assets together with the 
future contributions and the future investment incomes need to finance all the 
future benefits and adminis trative costs. This funding principle is checked in the 
open -group valuation (ongoing perspective).  Funding principle:  
open -group  
6) The long-term cost (required contribution rate) of the pension plan has 
decreased from 34.2% at year -end 2020  to 33.1% at year -end 2021 .  Required  
contribution rate  
7) As the actual contribution rate has been kept unchanged at 23.7%, there is an 
actuarial gap of 9.4% at year -end 2021 . Actuarial gap:  
YE2021 
8) The following plot shows the development of the actuarial gap from year -end 
2020  till year -end 2021 .  
 Actuarial gap: 
YE2020   -> YE2021 
Plot 1: Development of the actuarial gap: YE 2020  -> YE2021   
 
  
  
WT/BFA/W/5 94 
 
- 5 – 
 
 
  9) As the above plot shows, the actuarial gap decreased from 10.5% at year -end 
2020  to 9.4% at year -end 2021 . The major reason for this development is the 
higher than expected investment return in the year 2021 .  Discussion  
10) Since  the actuarial gap is large, we strongly recommend that the WTOPP 
Management Board considers how to bring the required contribution rate of 
the plan into balance with the actual contribution rate paid to the plan. 
Moreover, we recommend to closely monitor the further development of the 
actuarial gap.  Recommendations  
/ actions  
11) This should be done taking into account the long -term nature of the pension 
fund and the corresponding sake of continuity in contributions and benefits.  Sake of continuity  
12) However, it has to be noted that from one valuation to the next, the actuarially 
calculated required contribution rate may vary due to changes in asset values 
and the insured population, changes in the benefit provisions, changes in 
demographic and financi al assumptions, etc.  But: volatility  
13) Principally , the necessary reform can be carried out by decreasing certain 
benefits and/or by increasing the actual contribution rate. However, there are 
many details regarding the necessary reform that need to be ana lysed and 
discussed. For instance, there are several different benefit types that can be 
reduced, benefits can be reduced for certain groups of participants and 
beneficiaries only and lastly, any actions on the benefits and/or the 
contributions can be carr ied out immediately or step -wise over time. We will 
gladly assist the WTOPP in any work regarding this necessary reform.  Reform variants  
14) We are available to answer any questions on the material contained in this 
report and to provide explanations or further details, as may be appropriate.  Availability  
15) Readers interested in the disclaimer to the present report are referred to 
appendix A3. Disclaimer  
16) Lastly, the glossary given in Appendix A2 contains an explanation of the most 
important (technical) terms used in the present report.  Glossary  
  WT/BFA/W/5 94 
 
- 6 – 
 
 
   Respectfully submitted,   
St. Gallen, April  25, 2022   
  
 
  
Dr. David Schiess, M.Sc.  
Lead actuary  
Senior Actuary  
Fully qualified actuary SAA  
Federally certified pension fund actuary (SCPFA)  Livio Forlin  
Actuary  
Consultant  
Actuary   
WT/BFA/W/5 94 
 
- 7 – 
 
 
 2 Data  
17) All data was provided directly by WTOPP staff.  Data provider  
18) Unless  stated otherwise all figures are in CHF.  Currency  
2.1 Liability Side   
19) In this chapter we present tables and plots to get a grasp on the characteristics 
of the insured population (plan participants and beneficiaries).  Insured  
population  
20) A summary  of the insured population data used for the present interim 
valuation at 31 December 2021  and the previous full valuation at 31 December 
2020  is set out below.  Headcount  
Table 1: Insured population: Headcount   
 
  
  
21) The following table summarises the most important statistics of the insured 
population including the comparison to the previous year.  Statistics  
31.12.2020
Male Female Total absolut in %
Participants 312                404               716                709               7                   1.0%
Beneficiaries 191                211                402               384               18                 4.7%
Retirement 164               168               332               318               14                 4.4%
Disability 11                 11                 22                 22                 -                0.0%
Spouses 6                   23                 29                 26                 3                   11.5%
Children 10                 9                   19                 18                 1                   5.6%
Total 503               615                1’118              1’093             25                 2.3%
Share of beneficiaries 38.0% 34.3% 36.0% 35.1%Change
Headcount31.12.2021WT/BFA/W/5 94 
 
- 8 – 
 
 
  
 
 
1 Note that all information  given in this table is «stock» -information at the mentioned due date s. Hence, there are 
naturally (moderate) differences to the «flow» -information given in the income and expenditure statement 
(WTOPP’s financial statement).  For instance, the benefits presented in the income and expenditure statement are 
the benefits actually paid in a certain year. In contrast to this, the benefits given in this table are the benefits of all 
beneficiaries at the mentioned due dates. In this table we deliberately present «stock» -information only, as the 
insured population at year -end 2021  serves as the basis for all actuarial projections.  Table 2: Insured population: Statistics1  
  
FAR: final average remuneration; YoS: years of service   
22) The two tables above show that the  population of plan participants has 
changed only slightly. However, the population of beneficiaries has increased 
by 4.7%. This explains the fact that the share of beneficiaries has increased as 
well. This is only natural as the  pensioner population is still quite small and 
young at the moment and thus, it will gain in significance in the future.  Discussion  
23) Finally, the following diagram displays the age structure of the insured 
population.  Ages structure  
31.12.2020
Male Female Total absolut in %
Participants
∑ FAR 58’151’966    63’934’835    122’086’801  121’603’943  482’858         0.4%
Ø FAR 186’385         158’255         170’512         171’515         -1’002           -0.6%
∑ Pensionable Renumeration 59’334’777    65’297’065    124’631’842  123’972’864  658’978         0.5%
Ø Pensionable Renumeration 190’176         161’626         174’067         174’856         -789              -0.5%
Ø YoS 13.7              13.1              13.1              13.1              -                0.0%
Ø Age 47.3              46.0              46.6              46.4              0.2                0.4%
Beneficiaries
∑ Benefits 14’195’780     13’394’480    27’590’260    26’481’523    1’108’737       4.2%
Retirement 13’088’075    11’452’772    24’540’847    23’618’167    922’680         3.9%
Disability 708’852         767’912         1’476’764      1’489’921      -13’157          -0.9%
Spouses 347’532         1’125’370      1’472’902      1’277’697      195’205         15.3%
Children 51’322           48’425           99’746           95’738           4’008             4.2%
Ø Benefits
Retirement 79’805           68’171           73’918           74’271           -353              -0.5%
Disability 64’441           69’810           67’126           67’724           -598              -0.9%
Spouses 57’922           48’929           50’790           49’142           1’648             3.4%
Children 5’132             5’381             5’250             5’319             -69                -1.3%
Ø Age
Retirement 70.3              69.0              69.6              68.9              0.7                1.1%
Disability 63.5              56.6              60.1              59.1              1.0                1.7%
Spouses 59.8              69.7              67.7              66.8              0.8                1.2%Amounts in CHF31.12.2021 ChangeWT/BFA/W/5 94 
 
- 9 – 
 
 
   Plot 2: Insured population:  age structure   
 
  
  
24) The above  plot shows that the ages around 45 till 55 years are the most 
dominant ones what regards the population of plan participants. The 
population of pensioners is clearly small and young (all beneficiaries are below 
life expectancy) at the moment. This will ch ange in the future as the pension 
fund matures in age structure.  Discussion  
WT/BFA/W/5 94 
 
- 10 – 
 
 
  2.2 Asset  Side 
25) The waterfall  chart below provides a reconciliation of the market value of assets 
(all amounts are shown in MCHF) from year -end 2020  till year -end 2021 .  Reconciliation  
Plot 3: Reconciliation of market value of assets: YE 2020   -> YE2021   
 
  
  
26) The following  table displays some information on the investment return in the 
reporting year 2021 .  Investment return  
Table 3: Investment  Return in 2021   
 
  
Source: Inflation rate according to Swiss National Bank (SNB)   
27) As stated in Plot 3  the nominal investment income in the year 2021  amounts to 
73.7 MCHF. This corresponds to a nominal investment return of 11.1%. With 
the inflation of 1.5% this implies a real investment return in the year 2021  of 
9.6%  Discussion  
Nominal Return Inflation Rate Real Return
Year A B C=A-B
2021 11.1% 1.5% 9.6%WT/BFA/W/5 94 
 
- 11 – 
 
 
   
 
2 Since the number of plan participants is assumed to be constant at 700 and as there are 716 plan partic ipants at 
year-end 2021  (see Table 1 ), there are no entries modelled until the number of 700 is obtained (after exits and 
retirements, mainly).   3 Assumptions  
28) As usual with an interim valuation all assumptions are kept unchanged relative 
to the last full actuarial valuation as of year -end 2020 . Hence, the interested 
reader is referred to that report.  Everything  
unchanged…  
29) The only exception  to this rule is the discount rate for the next 10 years, since 
this parameter should reflect the current market conditions such that 
consistency to the used market value of assets (starting value for the cash -flow 
projections) is achieved. However, the ch ange in the discount rate over the next 
10 years is very small ( -0.1% -points).  … only one  
exception  
30) The following table provides a summary of the assumptions used in the open -
group valuation.  Assumption  
overview  
Table 4: Summary of assumptions2  
  
The changed assumptions are highlighted in red font.  The references to certain sections regard the last full 
actuarial valuation report at year -end 2020.   
BVG 2020 cohort table
70% of BVG 2020Market
0.2%31.12.2021
3.7% for the first 10 years, 4.5% thereafter
1.0% until 2029, and 1.5% thereafter
1.0%
1.0%
BVG 2020 cohort table
70% of BVG 2020Market
0.2%
Demographic31.12.2020
3.8% for the first 10 years, 4.5% thereafter
1.0% until 2029, and 1.5% thereafter
1.0%
1.0%Financial
Discount Rate
General Salary Increase
Pension Increase
Inflation RateAsset Value
WTO Specific (rates in Section 3)
Active Head CountWTO Specific (rates in Section 3)
Age Difference WTO Specific (rates in Section 3) WTO Specific (rates in Section 3)WTO Specific (rates in Section 3)
WTO Specific (rates in Section 3)
50%
25%
700 700Early Retirement
Individual Salary Increase
WTO Specific (rates in Section 3)
Lump Sum Share
New entrants WTO Specific (rates in Section 3) WTO Specific (rates in Section 3)MortalityAdministrative Costs
WTO Specific (rates in Section 3) WTO Specific (rates in Section 3)Withdrawal vs. DeferredWTO Specific (rates in Section 3)
WTO Specific (rates in Section 3)
WTO Specific (rates in Section 3)
50%
25%
Proportion Married on DeathDisability
Termination
Lump Sum ProbabilityWT/BFA/W/5 94 
 
- 12 – 
 
 
   4 Methods  
31) As usual with an interim valuation all methods are kept unchanged  relative to 
the last full actuarial valuation as of year -end 2020 . Hence, the interested reader 
is referred to that report.  Everything  
unchanged…  
32) However, the present interim actuarial valuation report contains the results of 
the open -group valuation only, as the closed -group valuation is performed in 
the full actuarial valuation solely.  Only open -group  
valuation…  WT/BFA/W/5 94 
 
- 13 – 
 
 
   5 Results  
33) Note that the present interim actuarial valuation report contains the results of 
the open -group valuation (ongoing perspective) only, as the closed -group 
valuation is performed in a full actuarial valuation solely.  Open -group only  
34) We first analyse the sustainability of the WTOPP with the present values of the 
various cash flows and the current level of assets in chapter 5.1. Afterwards, we 
consider the development of the assets and the various cash flows over time in 
chapter 5.2.  Outlook  
5.1 Required Contribution Rate  
5.1.1 Derivation   
35) The following  table contains the derivation of the required contribution rate 
(RCR).  Derivation of RCR  
Table 5: Derivation of the required contribution rate   
 
    
PV: present value   
36) The required contribution rate (RCR) decreases from 34.2% at year -end 2020  to 
33.1% at year -end 2021 . In the following, all changes are explained step -by-
step.  Discussion  
in MCHF 31.12.2021 31.12.2020
A Assets 738                    666                    
B PV Benefits
a) Current beneficiaries 453                    439                    
b) Current participants 871                    848                    
c) Future participants (new entrants) 621                    613                    
Total [a+b+c] 1’945                 1’899                 
C PV Pensionable remuneration
a) Current participants 1’165                 1’156                 
b) Future participants (new entrants) 2’501                 2’471                 
Total [a+b] 3’666                 3’627                 
D Calculated contribution rate (CCR)
[(B-A)/C] 32.9% 34.0%
E Administrative costs 0.2% 0.2%
F Required contribution rate (RCR)
[D+E] 33.1% 34.2%WT/BFA/W/5 94 
 
- 14 – 
 
 
 5.1.2 Reconciliation   
37) The following plot shows the change of the required contribution rate (RCR) 
from year -end 2020  till year -end 2021 .  Change RCR:  
YE2020  -> YE 2021 
Plot 4: Reconciliation of the required contribution rate: YE 2020  -> YE2021   
  
  
38) The starting point is the required contribution rate (RCR) at year -end 2020  
given in Table 5 .  RCR at YE 2020  
39) As already shown  in Chapter 2.1, the insured population has changed compared 
to the previous year. The number of plan participants has increased slightly 
whereas the number of beneficiaries has grown moderately. This leads to 
increase in the RCR of 0.1% -points.  Update  
population  
40) Based on last year's projection, the market value of assets was expected to be 
ca. 686 MCHF at year -end 2021  . However, the actual market value of assets at 
the year -end 2021  amounts to ca. 738 MCHF. There are two main reasons for 
the higher than expected mark et value of assets and thus, the correspondingly 
lower RCR. The net return on the assets was not 3.8% as assumed in the 
projection model, but 11.1% (see also section 2.2). In addition, the (liability 
driven) net cash flow in 2021  was higher in reality acco rding to WTOPP’s income 
statement ( -1.6 MCHF) than expected by the projection model ( -5.2 MCHF). The 
much higher than expected investment return and the slightly higher than 
expected net cash flow lead to a decrease in the required contribution rate of 
1.5%-points.  Update assets  
41) Lastly, as mentioned  all assumptions are kept unchanged relative to the 
previous year. The only exception to this rule is the discount rate for the next 
10 years, since this parameter should reflect the current market conditions s uch 
that consistency to the used market value of assets (starting value for the cash -
flow projections) is achieved. However, the decrease in the discount rate over Update  
discount rate  
WT/BFA/W/5 94 
 
- 15 – 
 
 
  the next 10 years amounts to 0.1% only and hence, the corresponding increase 
in the RCR of 0 .2%-points is quite small.  
42) Starting with the required contribution rate at year -end 2020  of 34.2% and 
adding up all the above -mentioned changes leads to the required contribution 
rate at year -end 2021  of 33.1%.  RCR at YE 2021 
5.1.3 Actuarial Gap   
43) Clearly, the required  contribution rate at year -end 2021  of 33.1% (see Plot 4 ) is 
much greater than the actual contribution rate of 23.7%. The actuarial gap in 
terms of contribution rate amounts to 9.4%.  Result:  
Big gap…  
44) This large gap shows that a reform is absolutely necessary. Principally, the 
pension fund can be put back into a reasonable actuarial position by decreasing 
certain benefits and/or by increasing the actual contribution rate.  …Reform  
necessary!  
45) However , there are many details regarding the necessary reform that need to 
be analysed and discussed. For instance, there are several different benefit 
types that can be reduced, benefits can be reduced for certain groups of 
participants and beneficiaries only and  lastly, any actions on the benefit and/or 
the contribution side can be carried out immediately or step -wise over time. 
We will gladly assist the WTOPP in any work regarding this necessary reform.  Reform:  
many details…  
46) The reason  for the high required contribution rate of 33.1% and hence, the 
large actuarial gap of 9.4% is that the current level of assets has to be judged 
as clearly insufficient after the assumption revisions implemented at year -end 
2019 and at year -end 2020. Put more precisely, the current level of assets is 
insufficient given the aquired benefits of the current plan participants and the 
current beneficiaries.   Insufficient assets 
given the acquired 
benefits  
47) With the reconciliation of the required contribution r ate from year -end 2020  till 
year-end 2021  given in Plot 4 , the development of the actuarial gap can easily 
be derived, since the actual contribution rate has been kept unchanged over 
the entire time period at 23.7%. The following plot shows the correspondi ng 
development of the actuarial gap.  Development  WT/BFA/W/5 94 
 
- 16 – 
 
 
   Plot 5:  Development of the actuarial gap: YE 2020   -> YE2021   
 
  
  
48) As the above  plot shows, the actuarial gap has moderately decreased from 
10.5% at year -end 2020  to 9.4% at year -end 2021 .  Discussion  
WT/BFA/W/5 94 
 
- 17 – 
 
 
   5.2 Cash -Flow Analysis  
49) After having compared the present value of the various cash flows to the 
current level of assets in the previous chapter, we now analyse the development 
of the assets and the various cash flows over time.  Development  
over time  
50) We start by first comparing the liability -driven cash flows:  
• Contributions  
• Benefits  
• Administrative costs  Liability -driven 
cash flows  
51) The asset -driven cash flows will be analysed later when we add the investment 
income3 to the above -mentioned cash flows.  Asset -driven  
cash flows: later…  
52) The following plot shows the expected development of the above -mentioned 
liability -driven cash flows.  Development:  
liability -driven CFs  
Plot 6: Development of liability -driven cash flows   
  
  
53) The above  plot shows that contributions (liability -driven cash -in) are already in 
2022 (first projection year) not sufficient anymore to finance the benefits and 
administrative costs (liability -driven cash -out). This means that the pension 
fund has recently started to consume (rely on) its investment income.  Discussion:  
1. Pivotal  
time p oint 
54) This is no news as the full actuarial valuation report at year -end 2020  has 
already presented similar findings.  Change to  
previous year  
55) The development  of the liability -driven cash flows depicted in Plot 6  can be 
explained by the development of the insured population given in the following 
plot.  Insured  
population  
WT/BFA/W/5 94 
 
- 18 – 
 
 
   
 
3 Strictly speaking investment income is not  only a cash flow since it contains also unrealized capital gains.  Plot 7: Development of the insured population   
  
  
56) The above plot shows that the number of plan participants has decreased a bit 
in the entire past (since 2010) and that the number of beneficiaries has strongly 
increased. Hence, the share of beneficiaries has continuously risen in the past 
of WTOPP. As the  population of beneficiaries at year -end 2021  is still quite small 
and young, the number of beneficiaries will further grow. In contrast to this, the 
number of plan participants is assumed to be constant at 700. Thus, the share 
of beneficiaries is clearly expected to increase further. This naturally explains 
the reduction of the liability -driven net cash flow over time shown in Plot 6 .  Discussion  
57) It is interesting to further analyse the development of the insured population 
as this is the main driver of the pension fund. The following plot shows the 
expected development of the age structure over time.  Age structure  
WT/BFA/W/5 94 
 
- 19 – 
 
 
 Plot 8: Development of the a ge structure at year -end 2046   
  
Expected age structure in 25 years   
58) As already  stated above the population of the beneficiaries at year -end 2021  is 
still quite small and young. Over the next 25 years the existing beneficiaries will 
mainly get older (only a moderate number of deaths are expected over this 
time horizon) and there will continually emerge many new young beneficiaries 
particularly thro ugh (early) retirements. This can be seen very well by 
comparing the above plot with Plot 2 .  Discussion  
59) Now  we add the asset -driven investment income to the above discussed 
liability -driven cash flows. This completes the picture as the current level of 
assets, the future investment incomes and the future contributions need to 
finance the future benefits and adm inistrative costs.  Adding 
investment 
income  
WT/BFA/W/5 94 
 
- 20 – 
 
 
  60) The following  plot shows the development of the revenues (contributions and 
investment incomes) and the expenditures (benefits and administrative costs) 
over time. Furthermore, it contains the expected path of the assets.  Revenues  
and expenditures  
Plot 9: Development of revenues and expenditures   
    
  
61) The second  pivotal time point occurs when the revenues (contributions and 
investment income) are not sufficient anymore to cover the expenditures 
(benefits and administrative costs). This is the point in time when the pension 
plans’ assets start to decrease. As can be seen from the above plot this second 
pivotal time point occurs after 14 years (in the year 2035).  
Taking into account the investment income, the WTOPP currently displays a 
positive net cash flow and hence, the assets are expected to increase further in  
the near future. However, after 14 years the projections show that the assets 
start to decrease.   Discussion:  
2. Pivotal  
time point  
62) This finding is similar to the results in the last year’s actuarial report where the 
second pivotal time point occurs in the year 2033.  Change to  
previous year  
63) The third and final pivotal  time point is when the assets are exhausted and there 
are no assets left to pay the plan’s expenditures (benefits and administrative 
costs). On expectation this happens in the WTOPP after 44 years (in the year 
2065).  Discussion:  
3. Pivotal  
time point  
64) This finding is similar to the results in the last year’s actuarial report where the 
third pivotal time point occurs in the year 2061.  Change to  
previous year  
65) Clearly , the exhaustion of the assets after 44 years given in Plot 9  shows the 
necessity of suf ficient reforms.  Reform necessary!  
WT/BFA/W/5 94 
 
- 21 – 
 A1. Cash -Flow Projections  
66) The following table shows the expected cash flows of the WTOPP in the open -
group valuation over the next 100 years based on the assumptions set out in 
Section 3. Note that these cash flows were calculated with the current actual 
contribution rate of 23.7%.   OGV: Cash flows  
Table 6: Cash flows in the open -group valuation   
  
Year Contributions Investment income Benefits [incl. Admin costs]
2022 28.90              27.20                       34.80                                    
2023 28.50              27.90                       37.20                                    
2024 28.40              28.60                       38.20                                    
2025 28.40              29.30                       40.90                                    
2026 28.50              29.80                       43.60                                    
2027 28.50              30.30                       46.00                                    
2028 28.50              30.80                       49.00                                    
2029 28.60              31.10                       52.20                                    
2030 28.60              31.30                       55.60                                    
2031 28.70              31.40                       58.10                                    
2032 28.90              38.20                       61.60                                    
2033 29.10              38.40                       64.20                                    
2034 29.30              38.50                       67.10                                    
2035 29.60              38.50                       69.50                                    
2036 29.90              38.40                       71.20                                    
2037 30.40              38.20                       73.70                                    
2038 30.80              38.00                       74.80                                    
2039 31.30              37.70                       76.50                                    
2040 31.80              37.30                       77.40                                    
2041 32.40              36.90                       78.90                                    
2042 32.90              36.50                       80.20                                    
2043 33.50              36.00                       80.80                                    
2044 34.10              35.50                       83.00                                    
2045 34.60              34.80                       84.10                                    
2046 35.10              34.20                       85.40                                    
2047 35.60              33.40                       86.70                                    
2048 36.00              32.60                       89.30                                    
2049 36.40              31.60                       93.10                                    
2050 36.60              30.40                       95.40                                    
2051 37.00              29.10                       97.10                                    
2052 37.40              27.60                       99.60                                    
2053 37.80              26.10                       100.70                                  
2054 38.30              24.40                       102.00                                  
2055 38.80              22.60                       103.20                                  
2056 39.40              20.70                       105.00                                  
2057 39.90              18.70                       105.90                                  
2058 40.50              16.50                       107.10                                  
2059 41.10              14.30                       108.40                                  
2060 41.70              11.90                       109.30                                  
2061 42.40              9.40                         110.40                                  
2062 43.00              6.70                         111.10                                  
2063 43.70              4.00                         111.90                                  
2064 44.50              1.10                         112.50                                  
2065 45.20              -1.90                       113.20                                  
2066 46.00              -5.10                       113.70                                  
2067 46.70              -8.40                       114.40                                  WT/BFA/W/5 94 
 
- 22 – 
 
     
Contributions, investment income and benefits (including administrative costs) in MCHF   
Year Contributions Investment income Benefits [incl. Admin costs]
2068 47.50              -11.80                     115.20                                  
2069 48.30              -15.40                     115.70                                  
2070 49.10              -19.10                     116.80                                  
2071 49.90              -23.00                     117.80                                  
2072 50.60              -27.10                     119.20                                  
2073 51.40              -31.40                     120.40                                  
2074 52.10              -36.00                     122.20                                  
2075 52.90              -40.70                     124.00                                  
2076 53.60              -45.80                     126.20                                  
2077 54.30              -51.20                     127.90                                  
2078 55.00              -56.80                     129.50                                  
2079 55.80              -62.70                     131.20                                  
2080 56.60              -69.00                     132.60                                  
2081 57.40              -75.50                     134.50                                  
2082 58.30              -82.40                     136.10                                  
2083 59.10              -89.60                     138.00                                  
2084 60.00              -97.20                     139.70                                  
2085 60.90              -105.20                   141.70                                  
2086 61.80              -113.60                   143.60                                  
2087 62.70              -122.40                   145.50                                  
2088 63.70              -131.70                   147.40                                  
2089 64.70              -141.40                   149.30                                  
2090 65.70              -151.60                   151.30                                  
2091 66.70              -162.30                   153.20                                  
2092 67.80              -173.50                   155.30                                  
2093 68.80              -185.30                   157.60                                  
2094 69.90              -197.60                   160.10                                  
2095 71.00              -210.60                   162.50                                  
2096 72.10              -224.20                   165.10                                  
2097 73.20              -238.50                   168.00                                  
2098 74.30              -253.60                   170.70                                  
2099 75.40              -269.40                   173.80                                  
2100 76.60              -286.00                   176.90                                  
2101 77.70              -303.40                   180.40                                  
2102 78.80              -321.70                   183.70                                  
2103 79.90              -341.00                   187.10                                  
2104 81.10              -361.20                   190.40                                  
2105 82.30              -382.40                   193.60                                  
2106 83.50              -404.70                   197.00                                  
2107 84.70              -428.00                   200.60                                  
2108 86.00              -452.60                   203.80                                  
2109 87.30              -478.30                   207.10                                  
2110 88.60              -505.20                   211.00                                  
2111 89.90              -533.50                   214.70                                  
2112 91.20              -563.20                   218.20                                  
2113 92.60              -594.30                   221.60                                  
2114 93.90              -626.90                   225.20                                  
2115 95.40              -661.10                   228.60                                  
2116 96.80              -696.90                   232.20                                  
2117 98.30              -734.40                   235.50                                  
2118 99.80              -773.60                   239.30                                  
2119 101.30            -814.80                   242.90                                  
2120 102.90            -857.90                   246.80                                  
2121 104.40            -903.00                   250.80                                  WT/BFA/W/5 94 
 
- 23 – 
   
A2. Glossary  
67) Accrued benefits  include benefits incurred but not paid in the current valuation 
year. In the case of WTOPP the accrued benefits are calculated with the current 
final average remuneration and the so far aquired years of service of a plan 
participant. The actual benefits t o be paid out in the future however, will 
depend on the final average remuneration and the aquired years of service at 
the commencement of the benefit.  Accrued benefits  
68) Actuarial assumptions  basically are all parameters needed for the actuarial 
projections. These include financial assumptions (i.e. discount rate, inflation 
rate, etc.) as well as demographic assumptions (i.e. growth of plan participant 
population, mortality rates, etc.).  Actu arial  
assumptions  
69) Actuarial surplus or deficit  is the actuarial position of the pension plan. This 
can be measured by the difference between the pension fund's assets and the 
liabilities or by the comparison of the required contribution rate to the actua l 
contribution rate.  Actuarial surplus 
(deficit)  
70) Administrative costs  include the costs incurred in the general administration 
of the Pension Plan. They do not include the costs for the Plan's Secretariat, 
which are borne by the WTO (Article 5(f) of the P lan Regulations) and also not 
the investment -related administrative costs, since these costs are already 
considered in the determination of the expected net portfolio return (discount 
rate).  Administrative 
costs  
71) Best estimate  stands for expected value. Wh at regards the assumptions this 
means that they are chosen as realistically as possible. The chance that reality 
will show a higher or a lower value than the best estimate assumption is fifty -
fifty.   Best estimate  
72) Cash -flow projections  include all future contributions, investment incomes, 
benefits and administrative costs. These future cash -flows are basically 
computed using the current insured population, the pension plan’s Regulations 
and various actuarial assumptions. They are import ant for understanding the 
actuarial position of the pension plan.  Cash -flow  
projections  
73) Closed -group valuation  determines the actuarial position of a pension fund by 
immediately closing the fund which means that no future entrants are taken 
into account . In the case of WTOPP this is done by modelling the accrued 
benefits of plan participants and beneficiaries only.   Closed -group  
valuation  WT/BFA/W/5 94 
 
- 24 – 
 
 74) Commutation  refers to retirement benefits, early retirement benefits and 
deferred retirement benefits commuted a t the request of the participant into a 
lump sum not exceeding 1/2 of the actuarial equivalent of the benefit or the 
amount of the participant's own contributions, whichever is the larger.  Commutation  
75) Discount rate  is the interest rate used in calculating the present value of future 
cash flows. In an actuarial context, the discount rate is often assumed to be the 
expected net return of the investment portfolio.  Discount rate  
76) Final average renumeration  (FAR) is the remuneration during the last years or 
months of service that serves as a basis for calculating any benefit payable 
under the WTOPP.  Final average  
remuneration  
77) Mortality rate  is the probability that a person of a given sex and age dies within 
one year.  Mortality rate  
78) Open -group valuation  determines the actuarial position of a pension fund by 
considering a given future time horizon where the fund is modelled as an open 
fund which means that future entrants are taken into account. After that time 
horizon the fund is closed (no further entrants) and the run -off is modelled.  Open -group  
valuation  
79) In economics and finance, a present value  (PV) stands for a discounted value. 
Often not just a single future cash -flow is discounted to the date of valuation 
but an entire cash -flow stream. In this latter case, the present value is the 
sum of all discounted future cash -flows.  Present value  
80) Rate of return  is the relative change (measured as a percentage ; also called 
growth rate)  in the value of the portfolio over a specified period, taking into 
account both the investment income  (cash -flows like dividends)  and the change 
in the market value o f the portfolio  (capital gain) . It is usually expressed as an 
annual rate. The nominal rate of return  is the  rate of  return before s ubtracting 
the inflation  rate (measured on the basis of the annual movement of the 
consumer price index in Switzerland). The real rate of return  is calculated by 
subtracting the inflation rate from the nominal rate of return. The term gross 
means that the return is calculated before the deduction of investment -related 
costs while the term net refers to the return including all investment -related 
expenses. The target real rate of return  is the long -term real rate of return 
(typically, this is the same as the real discount rate)  that the Pension Plan needs 
to achieve in order to meet its liabilities.  Rate of return  
  
 WT/BFA/W/5 94 
 
- 25 – 
    
81) Regulations and Administrative Rules  refer to the Regulations and 
Administrative Rules adopted by the General Council on 16  October  1998, as 
amended by the General Council on 1  December  2005, on 28  July 2009, on 
26 October  2011, on 30  November  2015, on 7  December  2016 and on 26 July 
2017.   
 
Regulations and 
Administrative 
Rules  WT/BFA/W/5 94 
 
- 26 – 
 
  
 
 
 
__________  
 
 A3. Disclaimer  
82) This Report is confidential information and intended for the exclusive use of the 
WTOPP Management Board and the WTOPP Secretariat. It may be shared with 
other WTO staff members, beneficiaries and WTO Members on a need -to-know 
basis only, in the context of the work/services which are the subject of this 
Contract, and only with the explicit authorization of the Chair of the WTOPP 
Management Board or the Secretary to the WTOPP in his/her absence. It was 
produced by c -alm AG exclusively for use by the World Trade Organization 
Pension Plan for the specific purpose as well as in the specific environment and 
context indicated to c -alm AG at the time of its preparation. Its content is based 
on the information made available to c -alm AG by the WTO Pension Plan or at 
its request. Its conclusions and recommendations are valid only for the specific 
purpose for which it was prepared, in relation to the information made availab le 
to c-alm AG and to the extent that the form in which this Report was issued by 
c-alm AG was not subsequently altered, edited or modified.  Use 
83) Neither c -alm AG nor any of its subsidiaries, affiliates, staff, agents or 
contractors may be held liable for the content of any part of this Report or for 
any action or omission any third party may be drawn to take on the basis of the 
content of this Report.  Liability