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The Federal Council decides against the employer: BVG interest rate remains

The balances in the obligatory part of the occupational Pension scheme interest is paid in 2020 to a minimum of 1 percent. The Federal Council decided on Wednesday. He followed the recommendation of the Federal Commission for occupational Pension plans.

In the body, in the insurance companies and the social partners are represented, had provided the recommendation for a controversy. The BVG-Commission applied the formula resulted in a value of less than 1 percent. Nevertheless, the majority recommended to remain at the current minimum rate of interest. As a reason for the Commission stated, among other things, the trust in the 2. To column strengths.

Accordingly, satisfied of the trade Union Confederation showed in a first reaction to the decision of the Federal Council. The pension funds would have generated in the course of this year, a record-high yields from an average of just under 9 percent, he writes. It is therefore positive to the Federal Council to lower the minimum interest rate below 1 percent, as it would have required insurance companies and employers.

Commission and the employer, in formula dispute

The employers ' Association had shown, on the recommendation of the BVG-Commission, indignant. This forsake not only the difficult environment of the pension funds, but suggest the rules to the Wind, he criticized at the time. Although Mr is a formula of dispute, cal. In the last years, the applied formulas are indicated for 2020, but a minimum interest rate of 0.5 percent. This sentence, the employer advised the Association to the Federal Council.

The minimum rate of interest determines how much percent of the retirement assets under the BVG Mandatory minimum of interest must be. The lower the rate, the less the balance of the Insured grow.

a Decisive factor for the amount of the minimum interest rate, the development of the yield of Federal bonds, stocks, bonds, and real estate is in the first place. According to information from the BVG had taken into account-Commission in its recommendation of this year, the affordability for the pension plans in respect of the possible financial market income and other criteria.

Federal Council holds rate

In his message, the Federal Council refers to bonds on the one hand, on the depth of yield of the Bund. The interest rate for 10-year government bonds is currently negative. On the other hand, the Federal Council took into account the positive Performance of equities, bonds and real estate. The Swiss Performance Index had until the end of September 2019 by 24.4 per cent, he writes.

Due to the good performance of the financial markets at the same time lower minimum rate of return is not justified a reduction of the minimum interest rate. The currently low interest rates on the capital market suggested however, no increase in the rate.

The Federal Council had adjusted the minimum interest rate several times in recent years. From 1985 to 2002, the rate was 4 percent. By 2012, he was reduced to 1.5 percent. In 2014, the Federal Council increased the minimum interest rate to 1.75 percent in 2015, he lowered it to 1.25 percent. Since 2017, the rate is 1 percent.


The controversy is likely to strengthen those voices that are calling for a "de-politicisation" of the minimum conversion rate and the minimum interest rate. This should be calculated according to a fixed formula. The national Council has already adopted two initiatives with this requirement, the Council of States is not reinstated suspended but to the ongoing Reform of the mandatory occupational Pension anticipate.

employers and trade unions have agreed on a compromise that'll have a lower minimum conversion rate, improvements for part-time employees, and working with low income, as well as a compensation for a transitional generation demands. The proposals are now to the Federal Council. (lop/sda)

Created: 06.11.2019, 14:00 Uhr

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