Conversion rate

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In the Swiss pension fund system, the conversion rate is the percentage of the capital saved that is paid out to retirees annually as a pension. It is regulated in Art. 14, Paragraph 2 of the BVG . The amount of the conversion rate is closely related to the life expectancy of the respective generation of pensioners. The change in the conversion rate only affects the new pensions.

Minimum conversion rate

A minimum conversion rate is set by parliament for the compulsory part of the occupational pension scheme (pension fund). As life expectancy has risen sharply in the last twenty years, the first BVG revision decided to lower the minimum conversion rate from 7.2% to 6.8%. In 2011 this rate was 6.95% for men and 6.9% for women. A further decrease to 6.4% was approved in parliament. On the other hand, a referendum was called by the trade unions, so that a referendum was held on March 7, 2010 , in which 72.7% of the Swiss people rejected the adjustment of the minimum conversion rate. At the end of December 2011, the Federal Department of Home Affairs opened the hearing on the report on the future of the 2nd pillar. The report contains a comprehensive problem analysis and possible solutions to the various reform points, in particular to the minimum conversion rate, the legal quota and the administrative costs. In this, the Federal Council again puts a reduction in the minimum conversion rate up for debate. Unlike two years ago, opposition to this is no longer as strong. Due to the very low interest rate environment, which hardly enables the pension funds to generate any returns, and the constantly increasing life expectancy, even previous opponents can now imagine supporting a reduction in the conversion rate, provided this is socially cushioned.

Determination of the minimum conversion rate

Determining the minimum conversion rate is a political process. Various assumptions must be made to determine the amount, in particular:

  • How long will the newly retired pensioner live on average. (Conditional life expectancy )
  • How much income can be achieved on his savings capital.
  • What additional costs can be expected (e.g. administrative costs, widow's pensions, disability pensions)
  • The constitutionally guaranteed performance target (the AHV national insurance and the pension fund must ensure the continuation of the accustomed standard of living after retirement).

See also

Individual evidence

  1. ↑ parlament.ch , accessed November 29, 2009
  2. ↑ Referendum of March 7, 2010 on the minimum conversion rate, dossier on parlament.ch ( Memento of the original of November 28, 2009 in the Internet Archive ) Info: The archive link was inserted automatically and has not yet been checked. Please check the original and archive link according to the instructions and then remove this notice. , accessed November 29, 2009 @1@ 2Template: Webachiv / IABot / www.parlament.ch
  3. ↑ Clear no to the lower pension conversion rate
  4. ↑ It's not really surprising: Colette Nova wants to lower the conversion rate