Information unaudited Information ungeprüftPension plans and other
long-term benefits
Pension plans
Post-employment benefits
The LLB Group has established a number of pension plans, in compliance with prevailing legal provisions, which insure most employees in the event of death, invalidity and retirement. In addition, further plans exist for long-service anniversaries, which qualify as other long-term employee benefits. In the case of the pension plans, contributions are made by employees, which are then supplemented by corresponding contributions from the LLB Group. The pension schemes are financed in compliance with the local legal and fiscal regulations. The risk benefits are based on the insured salary and the pension benefits on the accumulated capital. The assets of the funded pension plans are held within separate foundations or insurances and may not revert to the employer. For the calculation of mortality, life expectancy and disability, the technical bases BVG 2020 (previous year: BVG 2020) were used for all significant pension plans. The last actuarial valuations were performed as at 31 December 2025. The actuarial gains and losses are included in other comprehensive income.
Joint committees are set up for pension plans, which are administered via collective foundations. The foundation board of the autonomous pension foundation is also composed of an equal number of employee and employer representatives. On the basis of the legal provisions and the pension plan regulations, the foundation board is obligated to act solely in the interest of the foundation and the actively insured persons and pensioners. Consequently, in this pension plan the employer itself may not decide on benefits and their financing, rather decisions must be taken on equal terms.
The foundation board is responsible for determining the investment strategy, for amendments to the pension plan regulations, and especially for the financing of the pension plan benefits. The foundation board members of the pension plans specify investment guidelines for the investment of the pension plan assets, which contain the tactical asset allocation and the benchmarks for the comparison of performance with a general investment universe. The assets of the pension plans are well diversified. With regard to diversification and security, the legal provisions of the BPVG Pension Law apply to pension plans in Liechtenstein, and the legal provisions of the BVG Pension Law apply to pension plans in Switzerland. The foundation board members continually monitor whether the selected investment strategy is suitable for the provision of the pension plan benefits and whether the risk budget corresponds to the demographic structure. The observance of the investment guidelines and the investment performance of the investment advisers are reviewed on a regular basis. In addition, the investment strategy and its suitability and effectiveness are periodically checked by an external consultant.
The pension plan is designed as a defined contribution plan, i.e. a savings account is maintained for all the retirement benefits of each employee. The annual savings contributions and interest (no negative interest is possible) are credited to the pension savings account annually. At the time of retirement, the insured person may choose between a life-long pension, which includes a reversionary spouse pension, or the withdrawal of the savings capital. In addition to the retirement benefits, the pension plan also includes invalidity and partner pensions. These are calculated on the basis of the insured annual salary (defined benefit plan). Furthermore, the insured employee may purchase improvements to his pension plan up to a maximum sum specified in the regulations. If the employee leaves the company, the savings credit balance is transferred to the new employerʼs pension plan or to a blocked pension savings account. When determining the benefits, the minimum provisions of the Professional Pension Plans Law (BPVG) for Liechtenstein, as well as the Federal Law on Occupational Retirement, Survivorsʼ and Disability Pension Plans (BVG) for Switzerland and their implementing ordinances are to be observed. The minimum salary to be insured and the minimum pension savings balance sum are stipulated in the BPVG and BVG. On account of the pension plan structure and the legal provisions of the BPVG and BVG, the employer is subject to actuarial risks. The most important of these are investment risk, interest rate risk and longevity risk. The risks of death and invalidity are congruently re-insured. Currently, the individually accumulated pension capital for employees insured in Liechtenstein is converted into a life-long pension at age 65 at a pension conversion rate of 4.98 per cent. The conversion rate will gradually decrease to 4.82 per cent at age 65 by 1 January 2027. Amendments to the contribution payments made by the bank, the associated companies, or the employees require, in accordance with the regulations, the approval of the bank, the associated companies and a majority of the foundation board. The pension plans are financed through contributions made by the employer and the employees. The amount of the contributions is specified in the pension plan regulations. The employer must bear at least half of the contributions. In the event of underfunding, financial recovery contributions may be charged to both the employer and the employee to eliminate the shortfall in coverage, the employer must pay at least 50 per cent of the restructuring contributions.
The following amounts were recognised in the income statement and in equity as pension costs:
Benefit expenses
Pensions plans | Other long-term benefits | |||
in CHF thousands | 2025 | 2024 | 2025 | 2024 |
Defined benefit costs | ||||
Service cost | ||||
Current service cost | – 19’171 | – 14’335 | – 608 | – 586 |
Past service cost including effects of curtailment | – 1’003 | 3’050 | 9 | 0 |
Loss from non-routine settlements | 0 | – 78 | 0 | 0 |
Total service cost | – 20’174 | – 11’363 | – 599 | – 586 |
Net interest | ||||
Interest cost on defined benefit obligation | – 6’159 | – 8’476 | – 72 | – 80 |
Interest income on plan assets | 5’679 | 7’943 | 0 | 0 |
Total net interest | – 480 | – 533 | – 72 | – 80 |
Administration expense | – 568 | – 601 | 0 | 0 |
Net actuarial (losses) / gains recognised | 0 | 0 | – 15 | – 346 |
Total defined benefit cost | – 21’222 | – 12’497 | – 686 | – 1’012 |
of which personnel expenses | – 19’735 | – 12’497 | – 707 | – 1’012 |
of which financial expense | – 1’487 | 0 | 21 | 0 |
Contributions to defined contribution plans | – 571 | – 1’396 | – 164 | 0 |
Remeasurement of the defined benefit liability | ||||
Actuarial (gains) / losses | ||||
Arising from changes in demographic assumptions | 0 | 1’428 | 0 | 0 |
Arising from changes in economic assumptions | 12’063 | – 37’679 | 93 | 29 |
Arising from experience | – 18’793 | – 5’377 | – 163 | – 375 |
Return on plan assets (excl. amounts in interest income) | 35’742 | 21’290 | 0 | 0 |
Total defined benefit cost recognised in other comprehensive income | 29’012 | – 20’337 | – 70 | – 346 |
Total benefit cost | 7’219 | – 34’230 | – 920 | – 1’358 |
Development of plan obligations
Pensions plans | Other long-term benefits | |||
in CHF thousands | 2025 | 2024 | 2025 | 2024 |
As at 1 January | 651’119 | 581’532 | 4’704 | 4’168 |
Current service cost | 19’171 | 14’335 | 608 | 586 |
Plan participation contributions | 10’428 | 10’314 | 0 | 0 |
Interest costs | 6’159 | 8’476 | 72 | 80 |
Liabilities extinguished on settlements | 0 | – 234 | 0 | 0 |
(Gains) / Losses on curtailments | – 484 | 0 | – 9 | 0 |
Liabilities assumed in a business combination | 1’048 | 0 | 331 | 0 |
Benefits paid through pension assets | – 33’747 | – 1’906 | 0 | 0 |
Benefits paid by employer | – 563 | 0 | – 702 | – 498 |
Actuarial (gains) / losses | 6’730 | 41’628 | 70 | 346 |
Plan amendments | 1’487 | – 3’050 | 0 | 0 |
Currency effects | – 108 | 24 | – 16 | 22 |
As at 31 December | 661’240 | 651’119 | 5’058 | 4’704 |
of which active employees | 456’220 | 467’005 | ||
of which pensioners | 203’533 | 184’114 | ||
Average term of obligation | 14 | 14 | ||
Development of plan assets
Pension plans | ||
in CHF thousands | 2025 | 2024 |
As at 1 January | 587’604 | 532’206 |
Plan participation contributions | 10’428 | 10’314 |
Company contributions | 20’139 | 18’670 |
Assets distributed on settlements | 0 | – 312 |
Interest income on plan assets | 5’679 | 7’943 |
Administration expense | – 568 | – 601 |
Benefits paid through pension assets | – 33’747 | – 1’906 |
Return on plan assets (excl. amounts in interest income) | 35’742 | 21’290 |
As at 31 December | 625’277 | 587’604 |
The pension fund assets as at 31 December 2025 include shares of LLB with a market value of CHF thousands 57 (31.12. 2024: CHF thousands 34). The expected Group contributions for the 2026 financial year amount to CHF thousands 18ʼ336 for the pension plans and CHF thousands 617 for the other long-term benefits.
Overview of net debt recognised in the balance sheet
Pension plans | Other long-term benefits | |||
in CHF thousands | 31.12.2025 | 31.12.2024 | 31.12.2025 | 31.12.2024 |
Present value of funded obligations | 658’297 | 649’582 | 0 | 0 |
Minus fair value of plan assets | 625’277 | 587’604 | 0 | 0 |
Under- / (Over-)funded | 33’020 | 61’978 | 0 | 0 |
Present value of unfunded obligations | 2’943 | 1’537 | 5’058 | 4’703 |
Net debt recognised in the balance sheet | 35’963 | 63’514 | 5’058 | 4’703 |
Asset classes
Share of total assets | ||
in CHF thousands | 31.12.2025 | 31.12.2024 |
Equities | ||
listed market prices (Level 1) | 251’776 | 210’305 |
other than listed market prices | 0 | 0 |
Bonds | ||
listed market prices (Level 1) | 220’774 | 242’036 |
other than listed market prices | 0 | 0 |
Real estate | ||
listed market prices (Level 1) | 13’908 | 11’038 |
other than listed market prices / direct investments | 67’285 | 63’848 |
Alternative financial investments | 35’945 | 28’635 |
Qualified insurance policies | 23’670 | 25’615 |
Other financial investments | 619 | 630 |
Cash and cash equivalents | 11’300 | 5’497 |
Total plan assets | 625’277 | 587’604 |
Principal actuarial assumptions
Pension plans | Other long-term benefits | |||
in per cent | 31.12.2025 | 31.12.2024 | 31.12.2025 | 31.12.2024 |
Discount rate | 1.2 | 1.0 | 1.9 | 1.7 |
Future salary increases | 1.3 | 1.3 | 1.8 | 1.7 |
Future pension indexations | 0.0 | 0.0 | 0.0 | 0.0 |
Interest credit rate | 2.0 | 1.8 | ||
Capital withdrawal rate | 37.8 | 37.8 | ||
Life expectancy at the age of 65 | ||||
Year of birth | 1980 | 1979 | ||
men | 25.3 | 25.2 | ||
women | 26.8 | 26.7 | ||
Year of birth | 1960 | 1959 | ||
men | 23.1 | 23.0 | ||
women | 24.8 | 24.7 | ||
The demographic assumptions correspond to those for the year 2025 based on BVG 2020.
Sensitivity analysis of significant actuarial assumptions
The following sensitivity analysis for the significant actuarial assumptions, on which calculations are based, shows how the cash value of pension obligations would change on the balance sheet date on account of a possible change in the actuarial assumptions. Only the listed assumption changes, all other assumptions remain unchanged.
Pension plans | ||||
31.12.2025 | 31.12.2024 | |||
in CHF thousands | + 0.25% | - 0.25% | + 0.25% | - 0.25% |
Discount rate | – 22’079 | 23’520 | – 22’114 | 22’853 |
Salary increase | 1’921 | – 1’869 | 2’132 | – 1’858 |
Interest credit rate | 5’652 | – 5’515 | 6’204 | – 5’477 |
in CHF thousands | + 10.00% | - 10.00% | + 10.00% | - 10.00% |
Capital withdrawal rate | – 4’583 | 4’706 | – 5’290 | 5’804 |
in CHF thousands | + 1 year | - 1 year | + 1 year | - 1 year |
Life expectancy | 13’712 | – 13’916 | 12’505 | – 13’143 |