Minimum interest rate of 1% remains unchanged for 2018
November 2, 2017
During his meeting of November 1, 2017 the Federal Council has decided not to change the minimum interest rate of 1% for the occupational pension benefits. Thus the minimum interest rate remains the same as in 2017.
The minimum interest rate is defined by taking into account the performance of the Federal government bonds as well as the rates of return on stocks and shares, bonds and real estate and is to be credited on the LPP savings capital (legal minimum). However the regulatory interest rate for the savings capital above the legal minimum is set by the Board of Foundation on its own discretion according to the pension fund’s performance, risk capacity and other parameters and may be lower than the minimum interest rate.
The minimum interest rate is reviewed once a year, as a rule in late autumn.
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