The 2nd pillar assets should be less well remunerated next year. The Federal Commission for Occupational Pensions recommends that the Federal Council lower the minimum interest rate to 0.75% in 2019 from 1% currently.
The LPP commission voted for a cut to 0.75% by a narrow majority, she said on Tuesday. Other proposals were rejected ranging from a hold at 1% to a decrease to 0.25%. The development of Confederation bonds as well as that of equities, bonds and real estate were decisive. The Federal Council will take its decision this autumn.
The rate determines the minimum interest at which the retirement assets covered by the compulsory occupational pension scheme must be remunerated. For the rest, the provident institutions are free to grant cover or not and to fix other remuneration.
For its recommendation, the committee, which includes representatives of insurers and workers, took into account the fact that this is the minimum rate. It can set a higher rate if the financial situation permits.
The minimum interest rate of the LPP has been set at 1% since 2017. For 2019, the committee had already proposed to lower it to 0.75%, but the Federal Council had not followed it.
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