News from the Board of Trustees
General Electric Switzerland Pension Fund (PF) / Supplementary Insurance Plan (SIP): News from the Board of Trustees, 17 November 2017
In October, the PF generated a return on investments of 1.45%, while the SIP generated a return of 1.53%. The accumulated results from January to October 2017 thus amount to 6.98% in the PF and 7.20% in the SIP
Interest rates in 2018 / pension adjustments
In 2018, the Federal Council’s BVG minimum interest rate on 2nd pillar savings capital will remain at 1.00%. The Board of Trustees has also decided on a 1.00% interest rate on savings capital in the PK and SIP in 2018. The projected interest rate will likewise remain at 1.00%.
Due to the consistently negative inflation trend, pensions will not be adjusted as per 1 January 2018.
Despite the continuous rise in life expectancy and persistently low interest rates on the capital markets, the Board of Trustees will not reduce the 2023 conversion rate any further. The following conversion rates will therefore apply at the retirement age of 65 in the years 2018 to 2023:
The Board of Trustees will furthermore endeavour to communicate the conversion rate 5 years in advance on a rolling basis. Taking account of the financial market situation and the Pension Fund’s financial/structural situation, a further reduction of the conversion rate as specified above is not excluded.
In the SIP, the 5.85% conversion rate at retirement age 65 will continue to apply in 2018. Since the option of drawing a pension will no longer be offered by the SIP from 1 January 2019 onwards, no further conversion rates will be required as of that year.
Lump-sum payment upon retirement and early retirement
Up until now, the PF and SIP had to be notified in writing 6 months in advance if a member wished to opt for a lump-sum payment upon retirement or early retirement. The Board of Trustees has now abolished this deadline. However, the formalities (spouse’s consent, certified signature, etc.) will continue to apply as before.
Insurance certificate / schedule
Up until now, your insurance certificate as per 31 December was sent out in February of the following year.
From now onwards, the insurance certificate will be issued as per 31 January. This has the advantage that all transactions performed until the end of December (e.g. buy-ins or advance withdrawals for residential property) will be shown on the certificate. The interest rates applicable in the respective year will also be specified.
Due to this change, the certificate will now be sent out in March instead of February.
The next meetings of the Board of Trustees will take place on 13 April 2018.