State Street maintains authority over a $52 billion Swiss pension fund.

State Street Corp. will continue its role as the custodian bank for a $52 billion Swiss pension fund after lawmakers rejected proposals to restore local control. The vote aimed to provide protection against U.S. intervention. In a vote held Thursday in Bern's lower house, legislators decided by 98 to 89 to maintain the Boston-based bank's authority over social security funds. The majority dismissed concerns that the Trump administration could pressure Switzerland by instructing State Street to halt payments.

This decision follows recent challenges State Street has faced regarding climate change policy in other European countries. The outcome means that Compenswiss, the government agency managing the fund, will not have to repeat the tender process completed by the end of 2023, which had terminated UBS Group AG's 25-year authority. The vote was in accordance with the Swiss government's advice, which warned that terminating State Street's contract within the first five years would lead to significant additional costs.