The Profond Foundation Board has approved the new pension fund regulations and set the new interest rates. With an interest rate of 1.75%, Profond is well above the minimum interest rate of 1%.
Interest rate
Profond will pay interest of 1.75% on retirement assets in 2020, which is well above the statutory minimum interest rate of 1%. The long-term investment strategy enables this return – despite an expected negative performance in 2020.
Conversion rates
The Profond Foundation Board has set the 2022 conversion rate (ordinary retirement age) at 5.8% for women and 6.0% for men. This means that the following conversion rates for ages 58 to 70 will apply for the years 2020 to 2022:
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Women |
Men |
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Age |
58 |
59 |
60 |
61 |
62 |
63 |
64 |
65 |
66 |
67 |
68 |
69 |
70 |
| 2020 | 5.0% | 5.2% | 5.4% | 5.6% | 5.8% | 6.0% | 6.2% | 6.4% | 6.6% | 6.8% | 7.0% | 7.2% | 7.4% |
| 2021 | 4.8% | 5.0% | 5.2% | 5.4% | 5.6% | 5.8% | 6.0% | 6.2% | 6.4% | 6.6% | 6.8% | 7.0% | 7.2% |
| 2022 | 4.6% | 4.8% | 5.0% | 5.2% | 5.4% | 5.6% | 5.8% | 6.0% | 6.2% | 6.4% | 6.6% | 6.8% | 7.0% |
With the conversion rate, your retirement assets are converted at the time of retirement into an annual old-age pension guaranteed for life.
Example: A retirement credit balance at age 65 of CHF 100,000 in 2021 thus results in an annual old-age pension of CHF 6,200 at a conversion rate of 6.2%. Retirement benefits in the form of capital are not affected by the reduction in the conversion rate.
Technical interest rate
The Foundation Board has decided to reduce the technical interest rate to 2.0%.
Inflation and pensions
Furthermore, the Foundation Board has decided not to award any compensation for rises in the cost of living for pensions for the year 2021.
Pension Fund Regulations 2021
The pension fund regulations have been revised and will be available here in German, French, Italian and English from 1 December 2020. The attached synopsis shows you which articles and passages have changed since the last pension fund regulations.
In addition, explanations and various calculation examples on the subject of purchasing into the pension fund can be found on the aforementioned website.
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