Profond is paying interest on the retirement assets of its insured members at 2.5 per cent in 2023, which is significantly above the statutory minimum. In addition, the Foundation Board has decided to build up the value fluctuation reserve and to keep the conversion rate constant.
Above-average interest rates are made possible by the proven real value strategy, with which Profond has achieved a total return of around 4.6 per cent and a provisional funding ratio of 107 per cent in 2023, despite a high level of volatility on the financial markets.
Long-term stability and safeguarding of benefits
Profond attaches great importance to being able to meet its financial obligations in the long term. For this reason, the Profond Foundation Board has decided to invest part of the returns in building up the value fluctuation reserve and to pass on the greater part to the insured with an interest rate of 2.5 per cent on retirement assets. Profond's stability is also reflected in other areas: The number of insured persons has risen to around 63,000 and the assets under management as of the end of 2023 amount to around 10.8 billion Swiss francs.
Against the trend: The conversion rate remains unchanged
The Profond Foundation Board has also decided not to lower the conversion rate for the years 2025 and 2026. This will create clear and reliable conditions for customers and partners – even in economically uncertain times.
New features for greater security
With the 2024 Pension Fund Regulations, Profond is again introducing innovations in order to improve benefits for its insured members and their surviving dependents. The main changes are:
- Lump sum payable at death for retirement pensioners: The surviving dependants of a retirement pensioner who dies in the first three years of pension payments will now receive a lump sum payable at death. This lump sum lapses after the pension has been paid out for three years.
- Lump sum payable at death for disability pensioners: A significant change is that the surviving dependants of a deceased disability pensioner will now receive a lump sum payable at death as well as a possible additional lump sum payable at death.
- Lump sum payable at death in the case of deferred retirement: Surviving dependents of an insured person who worked beyond the reference age will receive a lump sum payable at death.
You can read the full press release here.