The BVG minimum interest rate is to be increased to 1.25 percent.
- 04 Sep 2023 4:40 pm CET
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The Swiss Federal Commission for Occupational Retirement Provision (BVG-Kommission) has recommended that the minimum interest rate for occupational retirement provision be increased from 1% to 1.25% in 2024. This rate is used to determine the minimum interest rate for retirement savings in the BVG-Obligatorium. The decision will be made by the Federal Council. The recommendation takes into account the rising interest rates and inflation. The Swiss Trade Union Federation (SGB) criticised the recommendation, arguing that a minimum interest rate of 1.25% would not keep up with inflation, resulting in a decrease in the value of retirement savings. Travail.Suisse, the umbrella organisation of employees, welcomed the increase, noting that the BVG-Kommission was finally taking into account the interest rate reversal. However, they wished for a stronger increase due to inflation.nnnnnnnnnnnnnnnnnn