# v

|Figure 14 Market Returns on Risky and Risk Free Assets ...................................................33|
|---|
|Figure 15 Cumulative Returns (i.e. Cumulative Log Returns).............................................34<br>|
|Figure 16 Women Survival Rates .........................................................................................43|
|Figure 17 Men Survival Rates ..............................................................................................43|
|Figure 18 Mortality Improvement Rates...............................................................................44|
|Figure 19 Nominal yield curves since 2000..........................................................................46|
|Figure 20 MWRs as a Function of Gender and Age.............................................................52|
|Figure 21 Growth of Annuity and Capital Payments since 1994 .........................................61|
|Figure 22 Investment Positions held by Pension Funds .......................................................64|
|Figure 23 Investments in Bonds............................................................................................65|
|Figure 24 Relative Investments and Degree of Risk Coverage in 2002 ...............................65|
|Figure 25 Relative Investments of Pension Funds under private and under public Law......66|
|Figure 26 Growth of Different Segments of the Third Pillar................................................77|
|Figure 27 Growth of the 3a Capital at Different Banks........................................................78|
|Figure 28 Distribution of Risks by Category.......................................................................83|

# **TABLES**

|Table 1 AHV: Revenues, Expenditures and GDP (in millions) explored until 2015 .............8|
|---|
|Table 2 AHV: Contribution Rates and Benefits since 1948 ...................................................9|
|Table 3 Average Pensions, Income and Replacement Rates ................................................12<br>|
|Table 4 Total Minimal Contribution Rates under BVG law.................................................15|
|Table 5 Legal Conversion Factors for Women and Men (mandatory part)..........................17|
|Table 6 Administrative costs of the Second Pillar...............................................................21|
|Table 7 Pension Benefits as a Function of Pre-retirement Income.......................................22|
|Table 8 Evolution BVG Minimum Interest Rate..................................................................31<br>|
|Table 9 Ratio of Investment Portfolio Returns to MIR.........................................................34|
|Table 10 Investments Restrictions of Pension Funds ...........................................................36|
|Table 11 Provisions for Own Account and the Security Fund.............................................37|
|Table 12 Money's Worth Ratios for Second Pillar Retirees .................................................49|
|Table 13 Projected Money's Worth Ratios ...........................................................................50|
|Table 14 MWRs as a Function of Marital Status..................................................................52|
|Table 15 Number of Pension Funds and Members...............................................................55|
|Table 16 Risk Coverage of Pension Funds under BVG........................................................57|
|Table 17 Administrative Form and Risk Coverage in 2002 .................................................58|
|Table 18 Shift in the Choice of Administrative Form...........................................................59|
|Table 19 Size of Contributions .............................................................................................60|
|Table 20 Size of Annuity Market..........................................................................................61|
|Table 21 Total Assets and Liabilities of Swiss Pension Funds.............................................63|
|Table 22 Investments ............................................................................................................64|
|Table 23 Investments of Pension Funds with different degrees of Risk Coverage ..............66|
|Table 24 Technical Interest Rates.........................................................................................67|
|Table 25 Extent of Underfunding .........................................................................................68|
|Table 26 Money Value of Shortage ......................................................................................69|
|Table 27 Underfunding and Legal From...............................................................................69|