The Minimum Interest Rate for Professional Provident Funds is to be Raised to 1.25 Percent
Published: Monday, Sep 4th 2023, 17:40
Updated At: Friday, Oct 13th 2023, 14:12
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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 determines 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 increased interest rates and inflation. The Commission discussed rates ranging from 0.5% to 2.0% before settling on 1.25%. The difficult financial market situation was cited as the reason for the decision. Pension funds are also required to build up reserves and make necessary provisions, meaning that not all of the fund's return can be used for the minimum interest rate.nnnnnnnnnnnnnnnnnn
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