The public pension fund of the Canton of Neuchâtel (CPCN) recorded a "remarkable" return of 8 per cent in 2024, consolidating its financial base.

At the end of 2024, its coverage ratio stood at 81.8 per cent, surpassing the legal target set for 2052, and means the fund can now offer a remuneration of 3.25 per cent on retirement assets.

A quarter of its funds, amounting to CHF 1.4bn, are allocated to the future protection of benefits, reflecting the fund’s prioritisation of prevention and security.

Despite the encouraging figures, the board of directors said it remained vigilant in the face of market volatility and the widespread decline in returns elsewhere.

It stressed that it would continue to prioritise strengthening the fluctuation reserve value (RFV) and structural consolidation, with nearly 60 per cent of current funds allocated to these preventive measures.

As of the end of 2024, the RFV amounted to CHF 820m, while the additional provisions, such as a reduction in the technical rate, reached CHF 620m.

Since the transition to the contribution-based system six years ago, the average credited interest rate has stood at 2.7 per cent, significantly exceeding expectations.

However, in the interest of fairness and considering the recapitalisation contributions still borne by active members, the board of directors said they would not index pensions yet.

While this fundamental work may deprive them of more immediate, tangible results, it strengthens the long-term prospects for the evolution of the fund, the CPCN added.

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