The Swiss Pension Fund for the Civil Service of the Canton of Neuchâtel (CPCN) reported that its coverage ratio reached 85 per cent at the end of 2025, "well above" the legal target of 80 per cent by 2052.

Publishing its results for 2025, the pension fund said it made a return of 5.6 per cent in 2025, allowing it to reduce recapitalisation measures, pay retirement assets at 3 per cent and, on an exceptional basis in January 2026, grant an additional half-monthly pension to pensioners.

CPCN attributed its positive performance to a transformation process launched in 2018, which focused on governance, rationalisation, and optimisation.

The fund’s coverage ratio is supported by solid preventive measures, including a value fluctuation reserve at its target level, strengthened foundations and operating costs that are among the lowest in the market.

As a result of this discipline and safety net, the Grand Council has been able to reduce recapitalisation contributions from 5.2 per cent to 1.8 per cent.

The fund also explained that it has been able to enhance benefits due to “rigorous” management and that its solidity is reflected in the quality of benefits it provides.

For example, in the seven years since it switched to a defined contribution system, the average interest rate paid has been 2.75 per cent per annum, which the fund said is well above expectations.

Despite CPCN’s board of directors’ decision not to index pensions, due to intergenerational fairness and to prioritise reducing recapitalisation costs, the fund’s financial results in 2025 have resulted in granting an additional half-monthly pension payment to pensioners in January 2026.

CPCN suggested that this decision shows the commitment of the fund’s governing bodies to ensure that all insured members benefit from the results of “sound and responsible” management.

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