SWITZERLAND - UBS has thanked thousand of its pension fund members for their loyalty by paying CHF16m (€12.4m) into the scheme, the bank announced.

It said the payment was an "expression of appreciation" to the retired workers in its Pensionskasse.

The payment means that each of the around 16,000 retired members of the UBS Pensionskasse in Switzerland received a CHF1,000 extra payment.
 
The bank wrote in a letter to the pensioners: "As a former employee and current pensioner in our Pension Fund, you are a loyal and credible ambassador for UBS, and we wish to express our appreciation to you at a personal level."

A spokesperson for UBS confirmed to IPE that the bank wanted to thank the retirees for "keeping their faith in the bank even through the difficult times" and for helping explain the bank's situation to outsiders.
 
She added the money was not intended to increase funding levels in the Pensionskasse but as a special payment.

According to the 2009 annual report, the Pensionskasse was 95% funded and new figures might be published next week along with the UBS' results for Q4 2010.

In the letter to the pensioners, the management only noted the bank "returned to profitability" last year.

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