Audit et contrôles
Swiss GAAP FER 31: Rules for Listed Companies (2027)
Learn Swiss GAAP FER 31 rules for listed companies, including EPS, segment reporting, interim accounts, and English PDF access.
Alice Meier
25 August 2026
5 minutes read
Blog
Swiss GAAP FER 26: What It Is & How It Works
Learn how Swiss GAAP FER 26 governs pension fund accounts, asset valuation, disclosures and reporting in Switzerland.
Services fiduciaires
Introduction
Swiss GAAP FER 26 is the accounting standard used by Swiss pension institutions to prepare their annual financial statements. It sets rules for the balance sheet, operating account, asset valuation and required disclosures.
The standard applies to the pension institution itself. It should not be confused with Swiss GAAP FER 16, which covers the economic effect of pension obligations in an employer’s accounts.
The current version of FER 26 has applied since 1 January 2014. A review is underway, but no revised version is due to take effect at the start of 2027. This guide explains the current requirements and the changes pension institutions should monitor.
What Is Swiss GAAP FER 26?
Swiss GAAP FER 26 is an industry-specific reporting standard for Swiss occupational pension institutions. Its purpose is to present a clear and reliable view of a pension fund’s financial position.
The standard supports Switzerland’s second-pillar pension system. It helps foundation boards, auditors, supervisory authorities, employers and insured members understand how a pension institution is funded and managed.
According to the Swiss GAAP FER Foundation, financial statements prepared under FER 26 meet the relevant legal reporting requirements. The institution does not need to prepare a separate set of annual accounts for the same purpose.
For a wider introduction to the framework, read our guide to Swiss GAAP FER standards in Switzerland.
Swiss GAAP FER 26 vs FER 16
The two standards cover related topics but apply to different reporting entities.
Reporting entity
Swiss GAAP FER 26Pension institution
Swiss GAAP FER 16Employer or organisation
Main purpose
Swiss GAAP FER 26Pension fund accounts
Swiss GAAP FER 16Employer’s economic pension positionMain focus
Main focus
Swiss GAAP FER 26Assets, pension capital, provisions and funding
Swiss GAAP FER 16Economic benefits and obligations
Main users
Swiss GAAP FER 26Boards, auditors and regulators
Swiss GAAP FER 16Finance teams and investors
The pension institution’s FER 26 accounts provide information an employer may use when assessing its position under Swiss GAAP FER 16.
Who Must Apply Swiss GAAP FER 26?
Swiss GAAP FER 26 applies to Swiss pension institutions, including:
- Company pension funds
- Collective pension institutions
- Common pension institutions
- Occupational pension foundations
- Other institutions subject to Swiss occupational pension law
Since 2005, Swiss pension institutions have based their financial statements on FER 26. The Ordinance on Occupational Retirement, Survivors’ and Disability Pension Plans, or BVV 2, also requires pension institutions to prepare and value their accounts under this standard.
However, FER 26 does not directly govern an employer’s own financial statements. The employer normally considers pension benefits and obligations under FER 16.
Main Swiss GAAP FER 26 Requirements
A complete set of FER 26 financial statements contains three parts:
- A balance sheet
- An operating account
- Notes to the financial statements
The structure, classifications and account names should be applied consistently. This makes the information easier to compare between reporting years.
The Balance Sheet
The balance sheet presents the pension institution’s financial position at the reporting date. It normally includes:
- Investments and other assets
- Liabilities and accruals
- Pension capital for active members
- Pension capital for pensioners
- Technical provisions
- Employer contribution reserves
- Value fluctuation reserves
- Uncommitted funds or underfunding
These categories separate assets available to the fund from amounts already needed to meet pension commitments.
The Operating Account
The operating account, sometimes called the operative account, explains how the financial position changed during the year. It records:
- Employer and employee contributions
- Entry payments and vested benefits received
- Retirement, disability and survivors’ benefits
- Vested benefits paid when members leave
- Investment income and losses
- Administrative and asset management costs
- Changes in pension capital and technical provisions
- Creation or release of value fluctuation reserves
- The final annual surplus or deficit
The operating account allows readers to see whether changes came from member activity, pension payments, investment performance or actuarial adjustments.
Notes to the Financial Statements
The notes explain the figures and the methods used to calculate them. Common disclosures include:
- The pension institution’s legal form and organisation
- The structure of the pension plan
- The number of active members and pensioners
- Actuarial assumptions and recognised risks
- Investment strategy and asset allocation
- Asset valuation methods
- Net investment return
- Administrative and asset management costs
- The pension fund’s coverage ratio
- Related-party transactions
- Measures taken in response to underfunding
Clear notes are essential. Two pension funds can report similar figures while using different actuarial assumptions or investment strategies.
How Are Assets Valued Under FER 26?
Swiss GAAP FER 26 requires pension fund assets to be reported at their actual value on the balance-sheet date.
For publicly traded securities, the actual value is usually the quoted market price. If no active market exists, the institution must use a suitable valuation method. The method and key assumptions should be explained in the notes.
Using actual values makes market gains and losses visible in the accounts. It also provides a more current view than reporting investments at their original purchase cost.
Pension Capital and Technical Provisions
Pension capital represents the amount required to meet commitments to active members and pensioners. Technical provisions cover additional actuarial risks, such as changes in life expectancy or other fund-specific commitments.
A recognised pension fund actuary calculates or reviews these amounts. FER 26 does not impose one actuarial model. Both static and dynamic methods are allowed.
The institution should disclose its calculation method, technical interest rate, mortality tables and other material assumptions. Changes from the previous year also need a clear explanation.
What Is a Value Fluctuation Reserve?
A value fluctuation reserve helps a pension fund absorb losses caused by investment-market movements.
Pension obligations are long-term, but the value of shares, bonds, property and other investments may change each year. The reserve reduces the risk that a short-term market decline immediately creates financial stress.
The target reserve should reflect the fund’s investment strategy and risk exposure. It is separate from pension capital and technical provisions. A fund may therefore have a coverage ratio above 100% without having fully funded its target value fluctuation reserve.
How FER 26 Shows Financial Health
Readers often start with the coverage ratio. It compares the pension assets available with the pension capital and technical provisions that must be covered.
- Above 100% generally indicates overfunding.
- At 100% means the calculated obligations are fully covered.
- Below 100% indicates underfunding.
However, the ratio should not be read alone. A sound review also considers actuarial assumptions, the age profile of members, investment risks, expected cash flows and the level of value fluctuation reserves.
Investment results require the same care. Readers should review the net return after costs and compare it with the investment strategy and relevant benchmarks. One strong year does not prove that a pension institution is financially secure over the long term.
How Stakeholders Use FER 26 Accounts
Foundation board
Practical useMonitor funding, risk and governance
Fund management
Practical useSupport budgets and investment decisions
Auditors
Practical useTest valuation, accounting and disclosures
Supervisory authorities
Practical useReview compliance and financial stability
Employers
Practical useIdentify contribution risks and obligations
Insured members
Practical useUnderstand funding and benefit security
FER 26 is therefore more than a compliance exercise. It provides information used for governance, risk control, and long-term pension planning.
A Practical FER 26 Reporting Process: Step by Step
A reliable FER 26 year-end process should begin several months before the reporting date. The pension institution should assign responsibilities, establish deadlines and coordinate the work of administration, accounting, investment management, actuarial advisers and auditors.
The process normally includes the following steps:
Step 1: Close contribution, benefit and member records
Confirm that all employer and employee contributions, entry payments, benefit payments, vested benefit transfers and other member transactions have been recorded for the reporting year. Review outstanding items and investigate unusual movements.
Step 2: Reconcile member data with the accounting ledger
Compare the administration system with the general ledger. The total pension capital, contributions, benefits and member balances should agree with the accounting records. Differences should be documented and corrected before the accounts are prepared.
Step 3: Confirm balances with banks and asset managers
Obtain year-end statements for bank accounts, securities portfolios, pooled investments and other assets. Reconcile these statements with the pension institution’s records and identify pending transactions, accrued income, fees and cash movements.
Step 4: Determine the actual value of each investment category
Value listed securities using the relevant market prices at the reporting date. For property, private equity, infrastructure and other assets without an active market, obtain appropriate valuation reports and review the assumptions and methods used.
Step 5: Obtain the actuarial calculation of pension capital
Provide the actuary with complete and accurate member data. The actuary calculates the pension capital for active members and pensioners using the selected actuarial method and assumptions.
Step 6: Calculate technical provisions and the coverage ratio
Review the technical provisions required for longevity, disability, interest-rate, restructuring or other fund-specific risks. The coverage ratio is then calculated by comparing available pension assets with pension capital and technical provisions.
Step 7: Review the target value fluctuation reserve
Assess whether the reserve target remains appropriate in light of the investment strategy, asset allocation, market risks and the fund’s ability to tolerate losses. Record any creation, release or transfer in accordance with the applicable accounting policy.
Step 8: Prepare the balance sheet and operating account
Classify assets, liabilities, pension capital, technical provisions, reserves and uncommitted funds consistently with the previous year. Prepare the operating account so that contributions, benefits, investment results, expenses and changes in provisions can be clearly understood.
Step 9: Complete the required notes and cost disclosures
Document the pension institution’s legal structure, organisation, pension plan, membership, investment strategy, valuation methods, actuarial assumptions, coverage ratio and material risks. Disclose administrative and asset management costs separately where required.
Step 10: Perform analytical and consistency reviews
Compare the current year with the previous year and investigate significant changes. Useful checks include movements in member numbers, contributions, benefits, investment returns, pension capital, technical provisions, reserves and administrative expenses.
Step 11: Submit the accounts for audit
Provide the auditor with the financial statements, supporting schedules, bank confirmations, investment statements, actuarial reports, valuation documents and explanations for significant changes. Respond promptly to audit questions and record any proposed adjustments.
Step 12: Obtain foundation board approval and complete filing obligations
After the audit, present the final accounts and audit findings to the foundation board. Approve the annual financial statements, complete the required reporting to supervisory authorities, and communicate relevant information to employers and insured members.
Where Can You Find the Swiss GAAP FER 26 PDF?
People searching for a Swiss GAAP FER 26 PDF should use the official FER Foundation as their source. Its website provides a public summary and project updates, while the complete standards are available through the official Swiss GAAP FER publication.
Before using any third-party Swiss GAAP FER 26 download, check its publication date and language. An old document may not reflect the version in force or the latest review status.
Common FER 26 Reporting Mistakes
Common errors include:
- Using inconsistent classifications between years
- Reporting outdated investment values
- Failing to explain valuation models for unlisted assets
- Mixing technical provisions with value fluctuation reserves
- Omitting asset management costs
- Not explaining changes in actuarial assumptions
- Failing to reconcile member records with the accounts
- Confusing FER 26 with employer reporting under FER 16
- Reporting a coverage ratio without explaining material risks
These mistakes can weaken transparency and delay the audit or supervisory review.
Is Swiss GAAP FER 26 Changing in 2027?
The current standard remains applicable unless a revised version is formally adopted and implemented.
The FER Foundation began reviewing the standard in 2025. A subcommittee started detailed work in early 2026, with a public consultation planned for 2027. Adoption is expected no earlier than the end of 2027. The related federal ordinance would then need to be amended.
The review mainly concerns the presentation needs of collective and common pension institutions. Fundamental changes to valuation principles are not currently part of the project.
Pension institutions should monitor the consultation, but they should not treat the proposed timeline as a new effective date.
FAQ
Yes. Swiss occupational pension institutions prepare their annual financial statements in accordance with FER 26 and the applicable occupational pension legislation. The standard does not apply automatically to every Swiss company.
Élodie Rochat
Services fiduciaires
Swiss GAAP FER 26: What It Is & How It Works
Learn how Swiss GAAP FER 26 governs pension fund accounts, asset valuation, disclosures and reporting in Switzerland.
Élodie Rochat
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5 minutes read
Services fiduciaires
Swiss GAAP FER 20: What It Is & How It Works
Learn how Swiss GAAP FER 20 covers asset impairment, testing, recoverable amount, reversals, and disclosures for Swiss businesses.
Élodie Rochat
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8 minutes read