Annual Report 2005 Pension Fund of Credit Suisse ... - Pensionskasse

CREDIT SUISSE GROUP
Annual Report 2005
Pension Fund of Credit Suisse Group (Switzerland)

Contents
Page
1. Introduction 3
2. Auditors’ Report 6
3. Balance Sheet and Operating Account 7
3.1 Balance Sheet 7
3.2 Operating Account 8
4. Appendix 9
4.1 Principles and Organization 9
4.1.1 Legal Form and Purpose 9
4.1.2 BVG/LPP Registration/BVG/LPP Security Fund 9
4.1.3 Deeds and Regulations 9
4.1.4 Structure of the Foundation 10
4.1.5 Governing Body of the Pension Fund/Signatory Authority 10
4.1.6 Board of Trustees (term of office 2005 to 2008) 10
4.1.6.1 Employer representatives 10
4.1.6.2 Employee representatives 10
4.1.6.3 Representatives for retired employees 11
4.1.6.4 Reserve members 11
4.1.7 Investment Committee 11
4.1.8 Management 11
4.1.9 Actuary, Auditors and Supervisory Authority 11
4.1.9.1 Pension actuary 11
4.1.9.2 Auditor 11
4.1.9.3 Supervisory authorities 11
4.1.10 Affiliated Employers 11
4.1.11 Corporate Governance 12
4.1.11.1 Voting rights under Article 49a, paragraph 2 of the Swiss Occupational
Pension Funds Ordinance (BVV 2/OPP 2) 12
4.1.11.2 Loyal conduct in asset management, Art. 53a of the Swiss Federal Law
on Occupational Retirement, Survivors’ and Disability Pension Plans (BVG/LPP) 12
4.1.11.3 Remuneration of the Board of Trustees 12
4.1.11.4 Information policy 12
4.2 Active Members and Pensioners 13
4.2.1 Number of Active Members and Pensioners 13
4.2.2 Age Structure of the Active Members and Pensioners 13
4.3 How the Objective Is Fulfilled 14
4.3.1 Overview of Staff Pension Scheme 14
4.3.1.1 Benefits under the annuity plan 14
4.3.1.2 Retirement pension/retirement age 14
4.3.1.3 Disability pension 15
4.3.1.4 Death benefits 15
4.3.1.5 Vested benefits 15
4.3.1.6 Contributions by the member and the employer 15
4.3.2 Benefits under the Lump-Sum Plan 16
4.3.2.1 Retirement benefits 16
4.3.2.2 Disability pension and disabled person’s child pension 16
4.3.2.3 Death benefits 16
1

4.3.2.4 Vested benefits 16
4.3.2.5 Contributions by the member and the employer 16
4.4 Valuation and Accounting Principles, Consistency 17
4.4.1 Securities 17
4.4.2 Mortgages and Other Loans 17
4.4.3 Real Estate 17
4.4.4 Alternative Investments 17
4.4.5 Other Assets 17
4.4.6 Currency Management 17
4.4.7 Explanations on the Application of Swiss GAAP ARR 26 17
4.5 Actuarial Information/Cover Ratio 18
4.5.1 Actuarial Balance Sheet 18
4.5.2 Type of Risk Cover 19
4.5.3 Retirement Capital 19
4.5.4 Actuarial Provisions 19
4.5.4.1 Provision for increase in life expectancy 19
4.5.4.2 Provision for flexible retirement 19
4.5.4.3 Provision for actuarial risks 19
4.5.4.4 Reserve for future cost-of-living adjustments 20
4.5.5 Cover Ratio Art. 44 BVV 2/OPP 2 20
4.5.6 Cost-of-Living Adjustment 20
4.5.7 Sum of BVG/LPP Retirement Accounts (Shadow Account) 21
4.6 Explanation of Investments 22
4.6.1 Investment Organization 22
4.6.2 Expansion of Investment Possibilities (Art. 59 BVV 2/OPP 2) 22
4.6.3 Fluctuation Reserve 23
4.6.4 Investments According to Asset Class (Economic Exposure) 23
4.6.5 Total Assets Including Financial Derivatives 24
4.6.6 Notes on Investments (Financial Report) 25
4.6.7 Derivative Financial Instruments Art. 56a BVV 2/OPP 2 25
4.6.8 Outstanding Swap Transactions 26
4.6.9 Securities Lending 26
4.6.10 Notes Pertaining to the Investment Result 27
4.6.10.1 Performance 27
4.6.10.2 Average performance 27
4.6.10.3 Income from currency management 27
4.6.11 Investments with the Employer 27
4.6.12 Employer Contribution Reserve Fund 28
4.6.13 Liquid Assets and Securities Investments by Currency 28
4.6.14 Real Estate Investments 28
4.6.14.1 Changes in direct real estate investments 29
4.6.14.2 Real estate operating account 29
4.7 Notes Pertaining to Additional Positions in the Balance Sheet and
Operating Account 30
4.7.1 Administrative Costs 30
4.7.2 Asset Management Costs 30
4.8 Duties Imposed by the Supervisory Authority 30
4.9 Additional Information Regarding the Pension Fund’s Financial Position 30
4.9.1 Partial Liquidations 30
4.9.2 Pending Legal Proceedings 30
4.10 Events Following the Balance Sheet Date 30
2

1. Introduction
The 2005 fiscal year was exceptionally good for the Pension Fund of Credit Suisse Group (Switzerland). An overall
performance of 9.2 % was achieved, with minimal risk, on assets of CHF 9 billion. This led to an increase in the
cover ratio from 110.3 % to 115.6 %.
The result achieved made it possible to increase the fluctuation reserves to the required target value of CHF 1,148
million with an additional free foundation capital of CHF 30.3 million remaining. The Pension Fund has therefore
recovered from the poor stock market years between 2000 and 2002 to regain its original financial strength.
However, the present positive result is very unlikely to be repeated in 2006.
The Board of Trustees of the Pension Fund endeavors to return the gains made to the fund’s members. The gains
of the 1990s were used to make substantial improvements in benefits. During that period, for example, the retirement
age was reduced to 63 with no change in the level of pension. In addition, death benefits in the form of surviving
spouses’ pensions and lump-sum death benefits were increased. Pensioners, too, shared in the positive
investment results of that period through periodic upward adjustments of pensions in line with inflation.
The Pension Fund still finances the pension plan with a technical interest rate of 4 %. With the annual financing
of increasing life expectancy, the fund’s members are guaranteed a high annual interest payment of 4.5 % on more
than CHF 7 billion. The Pension Fund pays an interest rate of 2.5 % on the savings capital of CHF 522 million.
After the years of poorly performing stock markets at the beginning of the millennium, the Board of Trustees was
at pains to restore the Fund’s financial resources to the required strength. Mindful in particular of the continuing
rise in life expectancy, the Board of Trustees’ priority is to ensure the long-term financial security of the Pension
Fund.
As of January 1, 2005, WINCASA, a subsidiary of Credit Suisse Group specializing in real estate management,
joined our Pension Fund. This alone increased the number of fund members by 250. The upturn in the banking
business has led to an increase in personnel and therefore to a marked rise in the number of Fund members.
At the end of the year, the Fund’s membership and key figures were as follows:
Number of fund members as of December 31 2005 2004 Change
Persons Persons +/- %
Active members with permanent employment contracts 19,409 18,510 + 4.9
Active members employed on an hourly wage
who are only covered under the lump-sum plan 436 366 + 19.1
Pensioners as of January 1 of the following year 8,609 8,429 + 2.1
3

Key figures of the Pension Fund 2005 2004 Change
in CHF m in CHF m +/- %
Total assets 9,894.2 9,006.1 + 9.9
Required actuarial provisions
(excluding reserve for future cost-of-living adjustments) 8,457.1 7,999.7 + 5.7
Free foundation capital 28.4 0.0 na
Fluctuation reserve 1,148.0 681.8 + 68.4
Pension benefits and lump-sum withdrawals 606.7 638.9 - 5.0
Contributions, vested benefits transferred
into the fund and lump sums paid into the fund 745.5 582.5 + 28.0
Net income from securities investments 767.7 365.0 + 110.4
Net real estate income 57.1 59.6 - 4.2
Cover ratio in % 115.6 110.3 + 4.8
The Board of Trustees of the Pension Fund of Credit Suisse Group (Switzerland) held four meetings in 2004 and
dealt inter alia with the following annually recurring issues:
Approval of the annual report and the 2004 financial statements and discharge of the management.
Setting the interest rate paid on the savings capital for 2006. As in 2005, the interest rate is set at 2.50 %.
In the elections to the Board of Trustees for the period from 2005 to 2008, the previous board members were able
to retain their seats. The only new member elected to serve on the Board was Otti Bisang. At the constitutive
meeting, Vice Chairman Th. Isenschmid and the previous members of the Investment Committee were confirmed
in office.
As part of its duties, the Board of Trustees of the Pension Fund of Credit Suisse Group (Switzerland) approved
new Organizational regulations which define the tasks, competencies and powers of delegation of the executive
bodies and management. The Regulations also contain provisions on reporting and performance measurement.
On January 1, 2005, the investment process was realigned and a new head of investment with his team was hired.
This strengthens the Pension Fund’s independence vis-à-vis the Bank in the investment sector, too.
With regard to investments, the Board of Trustees took a close look at the legal position regarding securities lending
transactions, as well as the structures of the Pension Fund’s own hedge funds and the real estate investments.
On October 1, 2005, the Board of Trustees implemented a minor change to the Regulations, thereby establishing
the basis for the entry into force of the “Part-Time 55plus” employment contract. This model provides for a temporary
reduction in employees’ working hours without this affecting their pensionable earnings for purpose of the
Pension Fund.
In December, the Board of Trustees adopted the changes to the Regulations with effect from January 1, 2006.
The Regulations were adjusted to the legal requirements resulting from the revision of Swiss Pension Fund Law
(BVG/LPP) (3 rd package).
4

During the year under review, the Pension Fund verified the entitlement of all recipients of surviving spouses’ pensions.
Apart from a handful of exceptions, all recipients of surviving spouses’ pensions were able to confirm their
entitlement. The pensions of those who did not meet the conditions for entitlement were stopped and excess pension
payments were reclaimed.
The Board of Trustees also received regular detailed reports on the performance of the Pension Fund’s assets and
the work of the Investment Committee. The Board of Trustees took up the possibilities of further training. Within
the Pension Fund, two training programs were organized on “Measuring risk tolerance and determining the fluctuation
reserve” and “Direct and indirect real estate investments”.
Philip Hess Urs Bracher Guido Bächli
Chairman of the Board of Trustees Managing Director Investment Manager
5

2. Auditors’ Report
6

3. Balance Sheet and Operating Account
3.1 Balance Sheet
Assets Appendix 31.12.2005 31.12.2004
CHF % CHF %
Investments 4.6 9,860,288,667 99.7 8,916,889,755 99.0
Liquid assets 1,467,111,820 14.8 1,519,775,858 16.9
Bonds 4,164,724,990 42.1 3,565,439,840 39.6
Equities 1,602,134,255 16.2 1,405,582,349 15.6
Alternative investments 902,581,122 9.1 637,951,387 7.1
Other assets 97,889,309 1.0 114,702,890 1.2
Direct real estate investments 4.6.14 1,291,090,925 13.1 1,313,433,186 14.6
Indirect real estate investments 334,756,246 3.4 360,004,245 4.0
Accrued income and deferred expenses 33,872,257 0.3 89,190,225 1.0
9,894,160,924 100.0 9,006,079,980 100.0
Liabilities Appendix 31.12.2005 31.12.2004
CHF % CHF %
Liabilities 29,264,282 0.3 109,580,186 1.2
Vested benefits and pensions 29,264,282 0.3 109,580,186 1.2
Accrued expenses and deferred income 18,747,434 0.2 6,264,816 0.1
Employer contribution reserve fund 4.6.12 70,700,302 0.7 66,704,141 0.7
Retirement assets and actuarial
provisions 4.5 8,599,093,978 86.9 8,141,729,509 90.4
Retirement capital of active Fund members 4.5.1 4,183,896,934 42.3 3,857,469,292 42.8
Retirement capital of pensioners 4.5.1 3,919,023,044 39.6 3,843,781,819 42.7
Actuarial provisions 4.5.4 496,174,000 5.0 440,478,398 4.9
Fluctuation reserve 4.6.3 1,148,000,000 11.6 681,801,328 7.6
Free foundation capital 28,354,928 0.3 0 0.0
As of January 1 0 0.0 0 0.0
Income/expenditure surplus 28,354,928 0.3 0 0.0
9,894,160,924 100.0 9,006,079,980 100.0
Investments with the employer are listed and explained in point 4.6.10 of the appendix.
7

3.2 Operating Account
Appendix 2005 2004
CHF
CHF
Statutory and other contributions and buy-in sums
Employee contributions 154,282,340 142,401,746
Employer contributions 258,063,978 235,318,770
Actuarial provision for supplementary payments by employer 7,211,759 8,981,432
Buy-in sums and lump-sum contributions 179,999,166 112,503,644
Contributions to employer contribution reserve fund 4,339,675 1,864,167
Vested benefits brought into the fund on joining
Vested benefits brought in 138,605,258 78,499,958
Transfer of advance withdrawals under promotion of home
ownership scheme 2,980,754 2,944,579
Inflow from contributions and vested benefits brought
into the fund on joining 745,482,930 582,514,296
Regulatory benefits
Retirement pensions - 266,535,417 - 262,175,525
Surviving spouses’ pensions - 29,112,177 - 27,678,543
Orphans’ pensions - 1,037,635 - 1,006,290
Disability pensions - 20,945,040 - 19,079,691
Inflation-linked payments on current pensions - 25,370,225 - 20,485,438
Lump-sum payments on retirement - 24,191,078 - 29,869,592
Lump-sum payments upon death and disability - 1,809,016 - 2,017,181
Vested benefits withdrawn from the fund on leaving
Vested benefits - 196,076,683 - 243,129,249
Advance withdrawals of retirement capital to finance home
ownership or on divorce - 41,610,058 - 33,473,962
Outflows for benefits and advance withdrawals - 606,687,329 - 638,915,471
Release and creation of retirement capital
Creation (-)/release (+) of retirement capital of active Fund members 4.5.1 - 326,427,642 -142,850,192
Creation (-)/release (+) of retirement capital of pensioners 4.5.1 - 75,241,225 - 142,992,914
Creation (-)/release (+) of actuarial provisions 4.5.1 - 55,695,602 24,749,246
Creation (-)/release (+) of employer contribution reserve fund (net) 4.6.12 - 3,996,160 12,815,266
Insurance expenses
Contribution to the Security Fund - 2,940,388 - 3,366,038
Formation of retirement assets and insurance expenses - 464,301,017 - 251,644,632
Net result from insurance operations - 325,505,416 - 308,045,807
Investment income
Income from cash and cash equivalents 25,229,580 2,435,748
Income from bonds 148,084,308 108,233,346
Income from equities 394,482,225 97,577,173
Income from alternative investments 214,214,571 - 23,037,707
Income from other investments 11,311,374 2,342,850
Income from direct real estate investments 4.6.14.2 57,144,222 59,607,826
Income from indirect real estate investments 39,903,418 71,625,336
Income from currency management 4.6.10.3 - 54,230,474 116,195,064
Commissions and fees - 6,345,881 - 2,694,432
Asset management costs 4.7.2 - 4,651,604 - 7,691,628
Net investment income 825,141,739 424,593,576
Other income 26,087 34,784
Administrative expenses 4.7.1 - 5,108,810 - 5,621,286
Income/expenditure surplus before creation/release of fluctuation reserve 494,553,599 110,961,267
Creation (-)/release (+) of fluctuation reserve - 466,198,671 - 110,961,267
Income (+)/expenditure (-) surplus 28,354,928 0
8

4. Appendix
4.1 Principles and Organization
4.1.1 Legal Form and Purpose
A foundation as defined by Art. 80 et seq. of the Swiss Civil Code (SCC), Art. 331 of the Swiss Code of Obligations
(SCO) and Art 48 par. 2 of the Federal Law on Occupational Retirement, Survivors’ and Disability Pension Plans
(BVG/LPP) has been established under the name Pension Fund of Credit Suisse Group (Switzerland).
The purpose of the foundation is to provide occupational pension cover as defined by the BVG/LPP and its implementing
ordinances for employees of Credit Suisse Group and companies which have close business and financial
ties with Credit Suisse Group, as well as for said employees’ dependants and surviving dependants, against
the financial consequences of old age, disability and death. The foundation may also make provision in excess of
the legally prescribed minimum benefits, including assistance to alleviate hardship caused by illness, accident, disability,
or unemployment.
Employees of companies with close legal or commercial ties may, through a resolution of the Board of Trustees
and in agreement with Credit Suisse Group, be included in the Fund, provided that the Fund has made the necessary
monies available.
In order to achieve its objectives, the foundation may conclude insurance contracts or join existing contracts, as
long as the foundation itself acts as both policyholder and beneficiary.
4.1.2 BVG/LPP Registration/BVG/LPP Security Fund
The foundation has been entered in the BVG/LPP register of the Canton of Zurich under number 1290.
All pension funds subject to the provisions of the Federal Law on Vesting in Pension Plans (FZG/LFLP) must be
affiliated with the BVG/LPP Security Fund. If a pension fund becomes insolvent, the Security Fund guarantees
members’ benefits up to pensionable salaries of CHF 116,100 (CHF 113,940 up until December 31, 2004).
4.1.3 Deeds and Regulations
The deed of foundation is dated December 20, 1996
Regulations governing benefits dated January 1, 2005
Organizational regulations dated January 13, 2005
Regulations on investments and provisions, 2006 edition, dated December 8, 2005
9

4.1.4 Structure of the Foundation
Credit Suisse Group (Switzerland)
The Occupational Pension Foundation:
Board of trustees
5 employee representatives
5 employer representatives
2 pensioner representatives
Auditors
Pension actuary
Senior management
Administration
and Investment activity
4.1.5 Governing Body of the Pension Fund/Signatory Authority
The Board of Trustees is composed of an equal number of employee and employer representatives, and comprises
12 members (2005: 14 members). The names of the trustees and the other governing bodies are listed below.
Retired employees are represented by two members on the Board of Trustees. One representative for retired
employees is elected by the company and the other by the staff council. The chair and the vice-chair of the Board
of Trustees and the managing director of the Pension Fund are authorized to sign by joint signature with a minimum
of two signatures on behalf of the Pension Fund. The Board of Trustees is also entitled to grant joint signatory
rights to other persons and to determine the nature and scope of these rights.
4.1.6 Board of Trustees (term of office 2005 to 2008)
4.1.6.1 Employer representatives
Philip Hess, Zurich, Chair
Walter Berchtold, Zurich
Oswald J. Grübel, Zurich
Marco Illy, Zurich
Denise Stüdi, Zurich (until July 31, 2005)
Ulrich Körner, Zurich (from August 1, 2005)
4.1.6.2 Employee representatives
Otti Bisang, Zurich, Credit Suisse German-speaking Switzerland
Peter Loeffel, Montreux, Credit Suisse French-speaking Switzerland
Fridolin Rohner, NAB Brugg, affiliated companies (NAB, Leu etc.)
Marco Lucheschi, Lugano, Credit Suisse Ticino
Thomas Isenschmid, CSAM Zurich, Vice-Chairman, Credit Suisse, Division CSAM
10

4.1.6.3 Representatives for retired employees
Victor Erne, employer representative
Hans-Joachim Heun, employee representative
4.1.6.4 Reserve members
Hanspeter Strub, Zurich, Credit Suisse German-speaking Switzerland
Daniel Bickel, Lausanne, Credit Suisse French-speaking Switzerland
Claudio Mazzoni, Bank LEU, Zurich, affiliated companies (NAB, Leu etc.)
Pascal Brülhart, Lugano, Credit Suisse Ticino
Claude Jehle, CSAM Zurich, Credit Suisse, Division CSAM
4.1.7 Investment Committee
Philip Hess, Zurich, Chair
Guido Bächli, Investment Manager, participating in an advisory capacity, Zurich
Walter Berchtold, Zurich
Urs Bracher, Managing Director, participating in an advisory capacity, Zurich
Oswald J. Grübel, Zurich
Peter Loeffel, Montreux
4.1.8 Management
Urs Bracher, Managing Director, Zurich
Guido Bächli, Investment Manager, member of management, Zurich
Beatrice Eichenberger, Deputy Managing Director, Zurich
4.1.9 Actuary, Auditors and Supervisory Authority
4.1.9.1 Pension actuary
Hewitt SA, Zurich
4.1.9.2 Auditor
KPMG Klynveld Peat Marwick Goerdeler SA, Zurich
4.1.9.3 Supervisory authorities
Cantonal supervisory authority:
Amt für berufliche Vorsorge des Kantons Zürich (Office for Occupational Insurance of the Canton of Zurich),
Nordstrasse 20, 8090 Zurich
4.1.10 Affiliated Employers
As at December 31, 2005, 38 different companies (previous year 41) enjoying close business and financial ties
with Credit Suisse Group were affiliated to the Pension Fund of Credit Suisse Group (Switzerland). The decrease
is a result of the merger of the two legal entities Credit Suisse and Credit Suisse First Boston as of June 30, 2005.
11

4.1.11 Corporate Governance
4.1.11.1 Voting rights under Article 49a, paragraph 2 of the Swiss Occupational Pension Funds Ordinance
(BVV 2/OPP 2)
The Pension Fund exercises the shareholders’ rights associated with equity investments in the interest of its members
based mainly on financial criteria. In relation to routine business, voting rights will in principle be exercised in
line with the proposals of the Board of Directors. In the case of proposals which could have a lasting impact on
members’ interests (mergers, reorganizations, sales of subdivisions, changes in the structure of capital or voting
rights etc.), votes are exercised according to the instructions of the Voting Rights Committee. The latter takes its
decisions strictly by circular letter on the basis of a proposal from the investment officer. A valid decision of the
Voting Rights Committee shall have been taken if no objections have been made by the members within the prescribed
time limit. In the event of failure to reach a unanimous decision on the exercising of voting rights, the decision
will be taken by the Board of Trustees.
The Voting Rights Committee consists of the Chairman, the Vice-Chairman, one representative of the pensioners
on the Board of Trustees and the management of the Pension Fund.
4.1.11.2 Loyal conduct in asset management, Art. 53a of the Swiss Federal Law on Occupational
Retirement, Survivors’ and Disability Pension Plans (BVG/LPP)
To avoid conflicts of interest between the beneficiaries and management of the Pension Fund and those in charge
of asset management, the Board of Trustees issues rules of loyal conduct in asset management.
The persons concerned have undertaken to disclose their bank accounts at the request of the Board of Trustees
and to comply with the rules of Credit Suisse governing employee transactions.
In addition, each year in a written report addressed to the Board of Trustees, the persons concerned confirm that
they comply with the principles of loyal conduct in asset management.
4.1.11.3 Remuneration of the Board of Trustees
The representatives of the employer and the employees shall not receive any remuneration for their activities. In
addition to an annual flat-rate payment of CHF 2000, the representatives of the pensioners shall receive an attendance
fee of CHF 1000.
4.1.11.4 Information policy
The Board of Trustees publishes quarterly performance reports. Financial reporting takes place in the framework
of the annual report in accordance with Swiss GAAP ARR 26.
All relevant information on the pension scheme can be found on the website under
www.credit-suisse.com/pensionfund.
12

4.2 Active Members and Pensioners
4.2.1 Number of Active Members and Pensioners
Active members (employees with permanent contracts) Men Women Total
Balance at 31 December 2004 11,598 6,912 18,510
New members + 1,642 + 1,287 + 2,929
Departures - 1,158 - 872 - 2,030
Balance at 31 December 2005 12,082 7,327 19,409
Change in number of persons + 484 + 415 + 899
Change in % + 4.2 + 6.0 + 4.9
Pensioners Men Women Total
1.1.2006 1.1.2005 1.1.2006 1.1.2005 1.1.2006 1.1.2005
Retirement pensions 3,916 3,845 2,249 2,195 6,165 6,040
Disability pensions 308 292 314 298 622 590
Surviving spouses’
pensions 59 56 1,270 1,244 1,329 1,300
Support pensions 17 15 6 5 23 20
Child pensions 238 247 232 232 470 479
Total 4,538 4,455 4,071 3,974 8,609 8,429
Change in % + 1.9 + 2.4 + 2.1
4.2.2 Age Structure of the Active Members and Pensioners
Average age of active members (from age 25) on 31.12.2005 on 31.12.2004
Men 39.8 40.7
Women 38.2 39.8
Average age of pensioners on 1.1.2006 on 1.1.2005
Retirement pensions, men 70.6 70.3
Retirement pensions, women 70.0 69.7
Disability pensions 52.7 52.2
Surviving spouses’ pensions 74.5 74.2
Recipients of child pensions 16.8 16.8
13

4.3 How the Objective Is Fulfilled
4.3.1 Overview of Staff Pension Scheme
The Pension Fund as an autonomous pension institution exists in the legal form of a foundation. It comprises a
defined benefits scheme for the annuity plan and a defined contributions scheme for the lump-sum plan. The annuity
plan insures the fixed annual salary. The lump-sum plan insures variable parts of a person’s salary (bonus).
The Pension Fund also offers a voluntary supplementary plan to the annuity plan called the “Supplementary Plan
55”. Members can pre-finance the benefits that will be lost on early retirement from the earliest possible date of
retirement under the “Supplementary Plan 55”.
4.3.1.1 Benefits under the annuity plan
The fixed annual salary (12 monthly salaries) minus a coordination deduction equaling the maximum AHV/AVS
pension (CHF 25,800) is insured under the annuity plan. The coordination deduction for part-time employees is
adjusted in proportion to the number of normal working hours. The maximum amount of the pensionable salary is:
CHF 250,000 for employees and members of senior management
CHF 650,000 for members of the Executive Board of Credit Suisse and the Group Executive Board
From January 1, 2004 all salaries of new employees will be insured in the Pension Fund. The Supplementary
Pension Fund now only insures those portions of employees’ salaries which exceed CHF 163,800 in the case of
employees who joined the company before January 1, 2004.
4.3.1.2 Retirement pension/retirement age
The retirement pension can be drawn between the ages of 55 and 65 at the request of the bank or the member.
In this case the pension will amount to:
With 55 years: 61 % of insured retirement pension
56: 69 % of insured retirement pension
57: 76 % of insured retirement pension
58: 82 % of insured retirement pension
59: 87 % of insured retirement pension
60: 91 % of insured retirement pension
61: 94 % of insured retirement pension
62: 97 % of insured retirement pension
63: 100 % of insured retirement pension
64: 103 % of insured retirement pension
65: 106 % of insured retirement pension
The retirement pension is 3 % more for members of senior management and 9 % more for members of the
Executive Board.
At the request of the member, 50 % of the pension can be drawn as a lump sum.
The retirement pension is supplemented by pensioner’s child pensions and an AHV/AVS bridging pension.
The AHV/AVS bridging pension amounting to half of the anticipated AHV/AVS pension is paid from the date a
member effectively retires (but not before age 60) to the time he/she starts receiving the AHV/AVS pension.
14

4.3.1.3 Disability pension
The disability pension corresponds to the insured retirement pension upon commencement of the disability. If the
member is awarded a pension before the Swiss federal disability insurance (IV/AI) has reached a decision, an
advance will be paid on federal disability insurance in the form of a supplementary disability pension.
The disability pension will be supplemented by disability insurance child pensions.
4.3.1.4 Death benefits
In the event of the member’s death, the surviving spouse will be paid a spouse’s pension amounting to 66 2 / 3 %
of the insured retirement pension or of the retirement or disability pension already being paid, provided that the surviving
spouse fulfils the following criteria:
he/she has to support one or more children
he/she is entitled to an IV/AI pension or will be so entitled within the 12 months following the death of
the member
he/she is aged 45 or over.
If the surviving spouse is not entitled to a pension, he/she will receive a lump-sum payment equal to three annual
surviving spouse’s pensions.
The spouse’s pension will be supplemented by a lump-sum death benefit and by orphans’ benefits for entitled children.
The lump-sum death benefit corresponds to one insured annual salary provided that there is a spouse’s pension.
In all other cases the lump-sum death benefit shall amount to the total of the contributions personally paid by the
member (without interest) and any payments to purchase additional insurance benefits (with interest), but not less
than one annual salary.
4.3.1.5 Vested benefits
Since January 1, 1994 vested benefits in the Pension Fund have been fully transferable. Vested benefits include:
the cash value of the benefits acquired and the capital available in the supplementary account
not less than the member’s vested benefits paid into the Fund on joining, plus interest (at the BVG/LPP
minimum interest rate) for every year between the date on which these vested benefits were paid into the
Fund and the date the member leaves the Pension Fund, together with the normal contributions made by
the member for full insurance cover during the contribution period plus an additional 4 % for each year of
age beyond age 20. However, this supplement may not exceed 100 % of the contributions made. The age
is determined by the difference between the calendar year in which the member leaves the company’s
service and the year of birth.
The cash value of the accrued benefits corresponds to the amount which a person of the same age and salary as
the departing member would have to pay in if he/she wanted to purchase exactly the same insurance benefits as
the departing member has insured under the Pension Fund.
4.3.1.6 Contributions by the member and the employer
For persons who are insured only against the risks of death and disability (ages 17 to 24), the members and the
employer each contribute 0.75 % of the pensionable salary. Fully insured members (from age 24 onward) pay a
contribution of their pensionable salary graduating from 7.5 % between 25 and 34 years of age to 9 % between
35 and 44 years of age and 10.5 % between 45 and 65 years of age.
For fully insured members, the employer pays a total contribution equal to 167 % of the sum of all employee contributions
(for members of senior management 180 % in 2005 and 190 % in 2006).
15

4.3.2 Benefits under the Lump-Sum Plan
The variable annual salary (bonus) minus a co-ordination deduction of CHF 5,000 is insured.
From January 1, 2006, the maximum amount of the savings component of the pensionable salary amounts to
CHF 750,000, less the pensionable salary under the annuity plan.
The death and disability benefits are based on the average savings component of the last three annual salaries.
4.3.2.1 Retirement benefits
The accrued savings capital is paid out on retirement from the age of 55. A retirement pension can be drawn on
request.
4.3.2.2 Disability pension and disabled person’s child pension
The disability pension amounts to 50 % of the risk component of the pensionable salary, but not more than 30 %
of the pensionable salary under the annuity plan. Waiver of savings premium. Disabled person’s child pension along
similar lines to the annuity plan.
4.3.2.3 Death benefits
In the event of the member’s death, the surviving spouse will be paid a spouse’s pension amounting to 66 2 / 3 %
of the insured disability pension. The preconditions for entitled are the same as for the annuity plan. The spouse’s
pension will be paid until such time as the deceased would have reached retirement age. The surviving spouse’s
pension can also be drawn as a lump sum.
The spouse’s pension will be supplemented by a lump-sum death benefit and by orphans’ pensions for entitled
children.
The lump-sum death benefit is equal to the accrued retirement capital, but not less than one year’s risk component
of the pensionable salary.
4.3.2.4 Vested benefits
The vested benefits equal the accrued retirement capital.
4.3.2.5 Contributions by the member and the employer
The member and the employer each contribute 6 % of the savings component of pensionable salary. The employer
also pays a risk contribution of 3 % of the savings component of the pensionable salaries.
From January 1, 2006 employees have a free choice of employee savings contributions. The choice is between
contributions of 3 %, 6 % or 9 %.
16

4.4 Valuation and Accounting Principles, Consistency
Accounting, balance sheet reporting and valuation are done in accordance with the provisions of Swiss GAAP ARR 26.
4.4.1 Securities
Securities are valued at market prices on the balance sheet date.
4.4.2 Mortgages and Other Loans
Mortgages and other loans are shown in the balance sheet at par value minus any value adjustments required for
operational purposes. At this time, no value adjustments are necessary.
4.4.3 Real Estate
Direct real estate holdings are reported in the balance sheet at market value. The basis for determining the market
value is the sum of the discounted net cash-flow at the time of the valuation (DCF method). The market value
of the real estate is reviewed annually, 20 % of the real estate holdings being inspected at the time of the review.
All properties are to be inspected at five-yearly intervals.
Indirect real estate holdings are reported in the balance sheet at market value.
4.4.4 Alternative Investments
Private equity
Listed private equity (PE) investments are reported in the balance sheet at market value. In the case of unlisted
PE investments the net asset value (NAV) is used. The NAVs are to be checked for impairment by independent
specialists and corrected where necessary. The mandate for verifying the NAV was assigned to ALPHA
Associates AG, Zurich.
4.4.5 Other Assets
Other investments, claims and current account deposits are shown at par value, minus any value adjustments
required for operational purposes. At this time, no value adjustments are necessary.
4.4.6 Currency Management
Foreign currencies are regarded as an asset category in their own right. They are reported on the balance sheet
at market value.
4.4.7 Explanations on the Application of Swiss GAAP ARR 26
The new Swiss GAAP ARR 26 accounting standard stipulates that no free foundation capital may be reported until
fluctuation reserves have reached the level prescribed by the Board of Trustees. During the year under review, the
fluctuation reserves exceeded the necessary target volume.
17

4.5 Actuarial Information/Cover Ratio
4.5.1 Actuarial Balance Sheet
Actuarial balance sheet 31.12.2005 31.12.2004 Change
Fed. Insurance Fed. Insurance
Fund 2000/4 % Fund 2000/4 %
CHF CHF CHF
Retirement capital of annuity plan
Actuarial reserve for current pensions 3,541,225,319 3,459,582,764 81,642,555
Actuarial reserve for current bridging pensions 116,571,383 127,883,932 - 11,312,549
Actuarial reserve for awarded inflation-linked payments 243,601,082 256,315,123 - 12,714,041
Actuarial reserve for active employees 3,520,245,291 3,337,080,467 183,164,824
Savings capital for early retirement
(supplementary plan) 140,897,221 107,221,006 33,676,215
Retirement capital lump-sum plan
Actuarial reserve for current pensions 17,611,186 0 17,611,186
Actuarial reserve for awarded inflation-linked payments 14,074 0 14,074
Savings capital 519,047,679 408,957,084 110,090,595
Savings capital of employees receiving an hourly wage 3,706,743 4,210,735 - 503,992
Total retirement assets 8,102,919,978 7,701,251,111 401,668,867
Actuarial provisions
Provision for increase in life expectancy 183,067,000 141,060,000 42,007,000
Provision for flexible retirement 1) 105,607,000 100,112,000 5,495,000
Provision for actuarial risks 2) 65,500,000 57,306,398 8,193,602
Reserve for future cost-of-living adjustments 142,000,000 142,000,000 0
Total actuarial provisions 496,174,000 440,478,398 55,695,602
Retirement assets and actuarial provisions 8,599,093,978 8,141,729,509 457,364,469
Assets 9,894,160,924 9,006,079,980 888,080,944
Liabilities
Accrued expenses and deferred income/other liabilities 48,011,716 115,845,002 - 67,833,286
Employer contribution reserve fund 70,700,302 66,704,141 3,996,161
Fluctuation reserve 1,148,000,000 681,801,328 466,198,672
Total liabilities and provisions 1,266,712,018 864,350,471 402,361,547
Net assets 8,627,448,906 8,141,729,509 485,719,397
Retirement assets and actuarial provisions 8,599,093,978 8,141,729,509 457,364,469
Free foundation capital 28,354,928 0 28,354,928
Cover ratio pursuant to Art. 44 BVV2/OPP2 115.59 110.30
1)
3 % of the actuarial reserve for active employees
2)
1 % of the actuarial reserve for active employees + 200 % of the risk contribution for the lump-sum plan
18

4.5.2 Type of Risk Cover
The Pension Fund of Credit Suisse Group (Switzerland) is a “dual-definition” scheme. The annuity plan is a defined
benefit fund insuring the fixed pay components, while the lump-sum plan is insured in the form of a definedcontribution
scheme insuring the variable pay components.
The annuity plan also makes provision for a “Supplementary Plan 55” under which the member can pre-finance
the benefits that will be lost on early retirement from the earliest possible date of retirement. The retirement assets
and the actuarial provisions were calculated by Hewitt SA on the basis of the 2000 Federal Insurance Fund rates
(EVK 2000) and a technical interest rate of 4 %.
Pension reserves include all current pension entitlements of current pensioners. Sufficient actuarial reserves have
been set aside to finance discretionary inflation-linked payments in full. The actuarial reserves for active employees
are sufficient for expected retirement and disability pensions, expected surviving spouses’ pensions and lump
sums payable at death.
The change in member numbers, with active members increasing by 899 and pensioners increasing by 225 resulted
in a change in the actuarial reserve. Thus, the actuarial reserves earmarked for pension expectancies have
decreased by CHF 183.2 million and the actuarial reserves for current pensions have increased by CHF 81.6 million.
4.5.3 Retirement Capital
The retirement capital comprises on the one hand the actuarial reserve for current pensions, current bridging pensions
and awarded inflation-link payments and active employees’ pension expectancies under the annuity plan and
on the other hand the savings capital and actuarial reserves of the current pensions of the lump-sum plan. The total
retirement capital amounts to CHF 8,102.9 million (previous year CHF 7,701.3 million). This corresponds to an
increase of 5.2 % or CHF 401.6 million.
4.5.4 Actuarial Provisions
4.5.4.1 Provision for increase in life expectancy
The provision for the rise in life expectancy takes account of the increase in life expectancy and the resulting cost
of the increase in actuarial provision. This was taken into account with a flat-rate reserve of 2.5 % (previous year
2.0 %) of the actuarial reserve for active members and pensioners amounting to CHF 183.1 million (previous year
CHF 141.1 million).
4.5.4.2 Provision for flexible retirement
Actuarially required reductions are not factored in when the cost of retirements prior to the technical retirement age
is calculated. In order to absorb the costs resulting from not making the full reductions, a CHF 105.6 million reserve
has been set aside for flexible retirements. This is a blanket reserve amounting to 3 % of the actuarial reserve for
active members.
4.5.4.3 Provision for actuarial risks
The provision for actuarial risks is used to even out the financial impact of clusters of death and disability claims.
The provision amounts to 200 % of the risk contribution for the lump-sum plan and a flat-rate sum of 1 % of the
actuarial reserve for active members. It stands at CHF 65.5 million as against CHF 57.3 million the previous year.
19

4.5.4.4 Reserve for future cost-of-living adjustments
The reserve for future cost-of-living adjustments was formed to secure the long-term purchasing power of current
pensions. The reserve may only be built up if the cover ratio of the Pension Fund comes to more than 100 % and
should not exceed the cost of the estimated rate of inflation over the next 10 years. The reserve is not taken into
account in calculating the cover ratio pursuant to Art. 44 BVV 2/OPP 2 (Ordinance on occupational retirement,
survivors’ and disability pension plans). At the end of the year, the amount of the reserve remained unchanged at
CHF 142 million.
4.5.5 Cover Ratio Art. 44 BVV 2/OPP 2
The cover ratio as defined by Art. 44 BVV 2/OPP 2 is the ratio of net assets, as calculated according to commercial
criteria, to retirement capital. The net assets calculated correspond to the assets less the accrued expenses
and deferred income and the employer contribution reserve fund. The retirement capital corresponds to the total
retirement capital and the actuarial provisions, except for the reserve for future cost-of-living adjustments.
At the end of the year under review, the cover ratio amounted to 115.6 % (previous year: 110.3 %). The Pension
Fund is thus currently in a position to meet its obligations in full.
Calculation year (Dec. 31)
Trend of cover ratio 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005
Cover ratio according to
Art 44 BVV 2/OPP 2 117.5 126.7 125.4 130.6 126.6 117.2 106.7 108.4 110.3 115.6
In 2000 and 2001, improvements in benefits were introduced at the expense of the Pension Fund. This resulted
in a reduction in the cover ratio.
For comparison purposes, the cover ratio from 1996 to 2004 was recalculated in accordance with the latest legal
developments. As a result, the cover ratio for 2004 decreased from 112.2 % to 110.3 %.
4.5.6 Cost-of-Living Adjustment
The Pension Fund of Credit Suisse Group (Switzerland) seeks to compensate pensioners in part for the effects of
inflation on current pensions.
Each year, the Board of Trustees considers an increase in the inflation-linked payment. The Board of Trustees
follows a policy whereby it considers voluntarily raising the discretionary inflation-linked payment if the inflation index
has risen by 2 % since the last increase. In line with this policy, the Board of Trustees made an inflation-linked
payment of 2 % on January 1, 2005, but decided not to grant any increase in the inflation-linked payment on
January 1, 2006.
The reserve for future cost-of-living adjustments stood at CHF 142.0 million at the end of the year.
20

In order to guarantee awarded inflation-linked payments, the Pension Fund has set aside actuarial reserves totaling
CHF 243.6 million (previous year: CHF 256.3 million). The fact that inflation-linked payments previously awarded
have been secured does not, however, mean that pensioners are entitled to any future increases.
4.5.7 Sum of BVG/LPP Retirement Accounts (Shadow Account)
The Pension Fund’s benefits in all categories of benefits provided exceed the statutory (BVG/LPP) benefit levels
many times over. At balance-sheet date, the BVG/LPP retirement assets amounted to CHF 1,070.7 million (previous
year CHF 1,032.3 million).
21

4.6 Explanation of Investments
4.6.1 Investment Organization
The “Regulations on investments and provisions” of the Pension Fund of Credit Suisse Group (Switzerland)
govern the division of responsibilities, authority and control functions between the Board of Trustees and the
Investment Committee.
A distinction is made between the three investment phases of strategic allocation, tactical allocation and securities
selection/day-to-day business. From January 1, 2005, the following bodies are responsible for the individual phases:
Strategic allocation
Tactical allocation
Asset allocation within the
prescribed bandwidths
Board of Trustees determines bandwidths
Investment Committee determines bandwidths
Investment manager of the Pension Fund
On January 1, 2005, asset management was transferred to the asset managers working for the Pension Fund of
Credit Suisse Group. As well as managing a proportion of the assets themselves, they delegate asset management
to Credit Suisse through various submandates.
The Pension Fund has Credit Suisse submit a detailed quarterly report on derivatives operations. Credit Suisse also
prepares a monthly compliance monitoring report.
4.6.2 Expansion of Investment Possibilities (Art. 59 BVV 2/OPP 2)
The “Regulations on investments and provisions” provide for the expansion of the investment possibilities in accordance
with Art. 59 BVV 2/OPP 2. Despite these provisions, no maximum limits pursuant to Art. 54 and 55 BVV
2/OPP 2 were exceeded as of the balance sheet date. However, the Pension Fund invests in non-traditional investments
(hedge funds, venture capital and commodities). On December 31, 2004, investments in hedge funds and
venture capital amounted to CHF 902.6 million (CHF 638 million in the previous year), corresponding to 9.3 % of
total assets. There were no investments in commodities.
Since fall 2002 the Board of Trustees has followed an absolute performance strategy with regard to their investment
activities that is geared toward the preservation of capital. Alternative investment instruments supplement traditional
investment instruments. The Board of Trustees of the Pension Fund takes these investment decisions on
the basis of the asset and liability study prepared by Credit Suisse. According to the report of the Board of Trustees,
Art. 50 BVV 2/OPP 2 was complied with in full during the year under review.
22

4.6.3 Fluctuation Reserve
The “Regulations on investments and provisions” issued by the Board of Trustees prescribe the formation of a separate
fluctuation reserve based on criteria set by specialists. The fluctuation reserve is to be set at a level sufficient
to achieve 95 % to 98 % security.
In the interests of ensuring the continued existence of the Pension Fund, risks relating to securities and real estate
are covered by fluctuation reserves of CHF 1,148.0 million (CHF 681.8 million in the previous year). At 11.6 %
of total assets, the fluctuation reserve is in line with the target value set by the Board of Trustees (see following
table). The Foundation currently has the necessary risk capacity.
The fluctuation reserves required for 2006 as calculated by Strategic Advice Services in Credit Suisse’s Asset
Management Division on December 31, 2005 on the basis of the expected return determined by Credit Suisse
Economic Consulting amount to:
Probability of default Required fluctuation reserve Required fluctuation reserve
with a target return of 5.5 % as % of assets as % of assets
Portfolio as at Dec. 31 2005 Portfolio average 2005
2 % (security level 98 %) 9.2 % 11.6 %
5 % (security level 95 %) 7.8 % 9.6 %
Security level of 95 % or 98 %: Statistically, the fluctuation reserve will be insufficient to absorb the annual asset
fluctuation in one out of 20 or one out of 50 years respectively.
In contrast with the previous year, during the year under review the required fluctuation reserve was based on the
portfolio average (portfolio average 2005), as the average investment risk for the year was higher than the investment
risk on the balance sheet date.
4.6.4 Investments According to Asset Class (Economic Exposure)
In 2003, the Board of Trustees and the Investment Committee continued to follow the cautious investment strategy
introduced in fall 2002. Using overlay transactions (futures, forex forward transactions, swap transactions) the
overall risk of the portfolio is controlled independently of the strategy of the individual portfolio managers. Chapter
4.6.5 shows the actual asset allocation (economic exposure) on the balance sheet date. Equities and foreign
currencies were partly hedged and in the case of bonds the duration was shortened substantially by means of swap
transactions.
During the current year, the investment managers will again try to achieve the target return of 5.5 % in Swiss francs
by means of reasonable risk.
23

4.6.5 Total Assets Including Financial Derivatives
Economic exposure 2005 2004 2005 2004 Bandwidth
(actual asset allocation) in CHF m in CHF m in % in % Min. Max.
Liquid assets CHF 3,238.1 1,476.4 33.3 16.8
Direct 1,174.3 1,210.8
Derivative 2,063.8 265.6
Liquid assets foreign currencies - 340.6 284.3 - 3.5 3.2
Direct 228.3 296.7
Derivative - 568.9 - 12.4
Total cash and cash
equivalents 2,897.5 1,760.7 29.8 20.0 0 – 35
Direct 1,402.6 1,507.5
Derivative 1,494.9 253.2
CHF bonds 2,564.4 2,587.4 26.4 29.4
Direct and indirect 3,267.5 2,853.0
Derivative - 703.1 - 265.6
Bonds (other currencies) 897.2 712.4 9.2 8.1
Direct and indirect 897.2 712.4
Derivative 0.0 0.0
Total bonds 3,461.6 3,299.8 35.6 37.5 25 – 60
Direct and indirect 4,164.7 3,565.4
Derivative - 703.1 - 265.6
Equity investments Switzerland 88.0 685.5 0.9 7.8 0 – 20
Direct and indirect 688.1 685.5
Derivative - 600.1 0.0
Equity investments outside
Switzerland 722.3 732.5 7.4 8.3 0 – 20
Direct and indirect 914.0 720.1
Derivative - 191.7 12.4
Total equities 810.3 1,418.0 8.3 16.1 0 – 40
Direct and indirect 1,602.1 1,405.6
Derivative - 791.8 12.4
Venture capital (foreign currencies) 203.1 140.5 2.1 1.6 0 – 4
Hedge funds (foreign currencies) 699.5 497.5 7.2 5.6 0 – 11
Commodities 0.0 0.0 0.0 0.0 0 – 5
Total alternative investments 902.6 638.0 9.3 7.2 0 – 15
Other investments 20.0 19.5 0.2 0.2 0 – 1
Direct real estate investments 1,291.1 1,313.4 13.3 14.9
Indirect real estate investments 334.8 360.0 3.5 4.1
Total real estate 1,625.9 1,673.4 16.8 19.0 5 – 20
Total investments 9,718.0 8,809.4 100.0 100.0
Accrued income and deferred
expenses 33.8 89.2
Supplementary plan 55 142.4 107.5
Total assets 9,894.2 9,006.1
Total in foreign currencies 2,181.6 2,367.2 22.4 26.8 10 – 40
Equities and equity-type
investments CSG 217.9 195.4 2.2 2.2 0 – 5
24

4.6.6 Notes on Investments (Financial Report)
The cash and cash equivalents include bank assets and money market claims with a term of up to one year.
Liquid assets amounted to 14.4 % or CHF 1,402.6 million, compared with 17.1 % or CHF 1,507.5 million in the
preceding year. The financial report shows cash and cash equivalents amounting to 29.8 % (previous year 20.0 %)
or CHF 2,897.5 million.
Bond investments amount to 42.9 % or CHF 4,164.7 million as against 40.5 % the previous year. The maturity
of the bond portfolio was shortened compared with the previous year by means of swap transactions (see Chapter
4.6.8 Outstanding swap transactions and Chapter 4.6.5 Total assets including financial derivatives). The financial
report shows bonds amounting to 35.6 % (previous year 37.5 %) or CHF 3,461.6 million.
In line with risk assessments, equity investments underwent several changes during the course of the year and at
the end of the year stood at CHF 1,602.1 million or 16.5 % of the investments (previous year 16 % or
CHF 1,405.6 million). The financial report works out at 8.3 % (previous year 16.1 %) or CHF 810.3 million.
Alternative investments include investments in hedge funds, venture capital and commodities. No investments
in commodities were outstanding as at the balance-sheet date. The total commitment in venture capital amounts
to CHF 287.2 million and has been virtually fully utilized. As at December 31, 2005, the balance-sheet value of
the venture capital amounted to CHF 203.1 million (previous year CHF 140.5 million). The change in the balance
sheet value is partly attributable to a change in the accounting method used (according to NAV from January 1,
2005 onward) and partly to the strong performance of the venture capital investments.
At balance-sheet date, CHF 699.5 million was invested in hedge funds (previous year CHF 497.5 million). Alternative
investments account for a total of 9.3 % (previous year 7.2 %) of the investments.
Mortgages and loans are listed under “other investments”. The mortgages consist of a residual holding of CHF
20.0 million (previous year CHF 19.5 million). Existing mortgage loans will be increased or extended on request,
but in principle no new mortgage loans will be granted.
The “Supplementary Plan 55” asset class includes the mixed funds and liquidity of the “Supplementary Plan 55”.
The members bear the full risk for these investments themselves, which is why we did not allocate these investments
to the asset classes of the Pension Fund.
4.6.7 Derivative Financial Instruments Art. 56a BVV 2/OPP 2
In the Pension Fund derivative financial instruments are used on a continuous basis to hedge risks. However, they
are not used to apply a leverage effect to the total assets. On the balance sheet date, the maximum investment
limits in accordance with articles 54 and 55 BVV 2/OPP 2 were complied with. Derivatives used to increase commitments
were covered by the available liquidity. No uncovered derivatives were in use.
25

4.6.8 Outstanding Swap Transactions
The portfolio manager shortened the modified duration of the Swiss franc bond portfolio from 5.6 to 5.08 years by
means of two swap transactions involving CHF 200 million.
For strategic reasons, the duration of the bonds was further shortened from 5.08 to 3.54 in the framework of the
overlay. On the balance sheet date, interest rate swaps with various counterparties totaling CHF 500 million and
with maturities up until 2028 were outstanding from this shortening of maturities.
On the balance sheet date, the net present value of all outstanding transactions amounts to CHF 35.4 million and
is included in the balance sheet as a value adjustment.
4.6.9 Securities Lending
Securities lending refers to the loan of Pension Fund securities to Credit Suisse against payment of a commission.
Securities listed on a Swiss or foreign exchange or traded in an organized market and for which prices are published
regularly are suitable for such transactions. When securities are lent to CS, title or rights to the securities,
together with the associated rights, transfer to CS. The Pension Fund on the other hand acquires a claim for restitution
of securities of the same kind, quality and quantity. In order to secure the claim to the restitution of securities
of the same kind, quality and quantity, CS deposits collateral for the Pension Fund in a collateral safekeeping
account, the value of which must at all times equal at least 105 % of the market value of the borrowed securities.
Only assets that have been contractually approved by the Pension Fund may be used as collateral. In particular,
only shares issued by companies domiciled in one of the following countries are acceptable: all EU member states,
the US, Canada, Australia, Switzerland, and Japan. These shares must also be included in the main stock exchange
indices of these countries (e.g. FTSE 100, SMI, DAX). No more than 2.5 % of the total collateral value may be
represented by shares of the same company.
Securities lending transactions On 31.12.05 On 31.12.04
in CHF m
in CHF m
Bonds at market value (without accrued interest) 865.1 1,511.6
Equities at market value 276.5 159.8
Total lending transactions 1,141.6 1,671.4
26

4.6.10 Notes Pertaining to the Investment Result
4.6.10.1 Performance
The performance of the total portfolio is calculated by Credit Suisse in accordance with the modified Dietz method
and Swiss Performance Presentation Standards (SPPS).
Performance 2001 2002 2003 2004 2005 Ø 2001 – 2005
% % % % % %
Total assets incl. real estate - 2.8 - 5.2 4.9 5.1 9.2 2.1
Securities investments - 4.2 - 7.0 5.0 5.3 10.1 1.6
Pictet BVG index 1993 - 2.3 - 1.7 6.9 4.8 10.4 3.5
The book-entry return, i.e. the sum of all income divided by the average total assets during the year, equals 8.7 %
for the year under review (previous year: 4.8 %).
4.6.10.2 Average performance
Ø 1 year Ø 3 years Ø 5 years Ø 10 years
% % % %
Total assets incl. real estate 9.2 6.4 2.1 6.1
Securities investments 10.1 6.8 1.6 6.8
Pictet BVG index 1993 10.4 7.3 3.5 6.2
4.6.10.3 Income from currency management
For reasons of diversification, the Pension Fund invests in shares of foreign companies, foreign currency bonds,
hedge funds and venture capital. These investments lead to unwanted exposure to foreign currencies. Using overlay
transactions, the overall risk of the portfolio is controlled and unwanted foreign currencies are hedged in Swiss
francs. This means that foreign currencies are regarded as an asset category in their own right. Thus, changes in
the exchange rate value of the foreign currencies against the Swiss franc lead to gains or losses on the asset class
“Currency Management”. During the year under review, a loss of CHF 54.2 million (previous year: income of
CHF 116.2 million) was incurred on “Currency Management” which was offset by matching currency gains on the
submandates.
4.6.11 Investments with the Employer
As the employer, Credit Suisse Group and its subsidiaries transferred all employee and employer contributions to
the Pension Fund on a monthly basis.
The Board of Trustees has set a maximum investment limit of 5 % for Credit Suisse Group equities and equitytype
securities. This is the maximum legal limit for investments in the employer.
Assets invested in Credit Suisse or other Credit Suisse Group subsidiaries in the context of ordinary investment
activity should be regarded as investments in a listed major Swiss bank (Art. 5.2 of the Regulations on investments
and provisions).
27

The Board of Trustees receives regular information of the Pension Fund’s total exposure to Credit Suisse Group.
Exposure in CSG investments on 31.12.2005 31.12.2004
in CHF m
in CHF m
Liquidity 617.8 578.5
Bonds 135.9 127.7
Convertible bond and warrant investments (equity-type investments) 0.0 153.6
Credit Suisse Group shares (valued according to economic criteria) 217.9 41.8
Gain/loss on forex forward transactions and swap transactions - 33.2 0.0
Total 938.4 901.6
4.6.12 Employer Contribution Reserve Fund
During the year under review, the employer contributed CHF 4.3 million to the employer contribution reserve fund
for staff taking early retirement. At the same time, CHF 3.7 million was debited to the employer contribution reserve
fund for costs incurred in connection with retirements. As the target volume of the fluctuation reserves was exceeded,
it was possible to pay 5 % interest (CHF 3.3 million) on the initial holding of the employer contribution reserve
fund. As a result of these inflows and outflows the employer contribution reserve fund stood at CHF 70.7 million
at the end of the year (previous year: CHF 66.7 million).
4.6.13 Liquid Assets and Securities Investments by Currency
On the balance sheet date, sections of the USD investments were hedged against the Swiss franc by means of
forward foreign exchange transactions. After the hedging of foreign currencies, Swiss franc investments accounted
for 77.6 % of the investments. The remaining foreign currency positions, accounting for 22.4 % of the investments,
are mainly invested in euros.
4.6.14 Real Estate Investments
Real estate investments are divided into direct real estate investments of CHF 1,291.1 million (previous year:
CHF 1,313.4 million) and indirect real estate investments (investments in real estate investment funds and real
estate investment companies) of CHF 334.8 million (previous year: CHF 360 million). The largest indirect real
estate investment is the Pension Fund’s holding in Swiss Prime Site AG of CHF 218.5 million (previous year:
CHF 218.4 million) or 2.2 % of total assets. Other indirect real estate investments are those held in the CS Real
investment foundation (CHF 52.6 million) and the CS 1A real estate fund (CHF 63.8 million).
28

4.6.14.1 Changes in direct real estate investments
Value of property at year-end 2005 2004 Change in %
in CHF m
in CHF m
Investment value incl. investment in new buildings 1,384.3 1,412.5 - 2.0
Market value incl. investment in new buildings 1,291.1 1,313.4 - 1.7
Number of properties at year-end 2005 2004 Change in %
No. of units
No. of units
Number of properties owned directly
(incl. properties under construction) 101 105 - 3.8
Number of co-owned properties 8 8 -
Total 109 113 - 3.5
4.6.14.2 Real estate operating account
Direct real estate investments 2005 2004 Change in %
in CHF
in CHF
Net income from direct real estate investments 70,341,584 68,736,420 2.3
Upward revaluations 43,906,131 12,596,188 248.6
Other income from property 367,312 124,768 194.4
Gains on sales 554,017 1,022,942 - 45.8
Total income 115,169,044 82,480,319 39.6
Extraordinary redevelopment expenditure 2,488,587 6,681,586 - 62.8
Decreases in value 51,863,466 12,872,848 302.9
Property management (CSG in-house) 1,551,444 797,199 94.6
Insurance premiums 210,201 427,002 - 50.8
Taxes on the sale of properties 0 1,091,677 - 100.0
Selling expenses 568,286 285,820 98.8
Ordinary taxes on properties 1,339,040 716,359 86.9
Other property expenses 3,798 0 n/a
Total expenses 58,024,822 22,872,492 153.7
Net income from direct real estate investments 57,144,222 59,607,826 - 4.1
29

4.7 Notes Pertaining to Additional Positions in the Balance Sheet and Operating Account
4.7.1 Administrative Costs
Since 1997, the Pension Fund has borne its own administration expenses. During the year under review, the
Pension Fund further expanded the efficiency and reliability of the IT infrastructure. Thanks to cost savings,
the gross administration expenses were reduced from CHF 10.2 million the previous year to CHF 9.7 million. After
deduction of income on services, net administration expenses amounted to CHF 5.1 million, compared with
CHF 5.6 million the previous year.
4.7.2 Asset Management Costs
Asset management costs include all costs incurred in connection with asset management other than those already
charged to the asset management mandates. The reported cost of personnel, office space and infrastructure and
the management fees and costs for contracts placed externally includes in particular the cost of the asset managers
employed by the Pension Fund, all-in fees and reporting costs.
The asset management costs do not include property management costs, which are charged directly to the income
from the real estate investments.
4.8 Duties Imposed by the Supervisory Authority
No duties have been imposed by the supervisory authority.
4.9 Additional Information Regarding the Pension Fund’s Financial Position
4.9.1 Partial Liquidations
There were no partial liquidations during the year under review.
4.9.2 Pending Legal Proceedings
There are currently no significant legal proceedings pending.
4.10 Events Following the Balance Sheet Date
No events with an impact on the balance sheet were recognized after the balance-sheet date.
30

CREDIT SUISSE GROUP
Pension Fund of Credit Suisse Group (Switzerland)
JPK
P.O. Box 1
8070 Zurich
www.credit-suisse.com/pensionfund
JPK 14 04.06