10 December 2024

Interest rates and participation in investment returns

The Substitute Occupational Benefit Institution is set to grant additional interest on retirement savings capital in the area of pension provision for 2024 under BVG/LPP. Survivors’ and invalidity pensions are adjusted for inflation in accordance with the law. Pensioners in the BVG/LPP business unit, who are not subject to any statutory adjustment for inflation, will receive a one-off special payment with the first pension payment in January 2025. Moreover, interest rates have been set from 1 January 2025.

Payment of interest and benefit improvements in 2024

• The interest paid on vested benefits accounts was adjusted during the course of the year. From January to June, it was 0.4%; from July to September, it was 0.5%; and from October to December, it was 0.4% again.
• In the area of BVG/LPP provision, interest rates are being increased as follows: 
  • Additional interest of 3.00% will be granted on retirement savings capital for 2024. The total interest will thus increase to 4.25%.
  • Additional interest of 3.85% will be granted on the additional account balance for 2024. The total interest will thus also increase to 4.25%.
  • The additional interest is granted if the person is actively insured on 31 December 2024 or if a benefit case occurs on this date.
• A one-off special payment of 10% of the pension will be paid for pensions (pension provision under the Occupational Pensions Act), which are not adjusted as part of the statutory cost-of-living adjustment.

Payment of interest in 2025

• The interest on vested benefits accounts will be 0.40%. This interest rate is reviewed by the Board of Trustees every quarter and may be adjusted.  
• In the area of BVG/LPP provision, the following interest rates shall apply: 
  • The interest on retirement savings capital, will be 1.25%. 
  • The interest on additional account balances will be 0.40%. 

Adjustment of pensions for inflation

• The survivors’ and invalidity pensions paid in accordance with BVG/LPP and unemployment insurance (ALV) are adjusted for inflation in accordance with the law (Media release of the Federal Social Insurance Office dated 10 October 2024)