The stock market year 2022 presented enormous challenges: inflationary pressure, the associated rise in interest rates and geopolitical uncertainty resulted in collapses in almost every investment category. Since the beginning of the year, the net performance of the Vita Collective Foundation has been -8.45 percent. The current performance data can be obtained from vita.ch.
The performance was reflected in the cover ratio: the indicative cover ratio as at the end of November 2022 was 102.27 percent. "At the end of 2021, our target value fluctuation reserves had been fully accumulated. That was a helpful cushion for the this very trying investment year," noted Werner Wüthrich, Managing Director of the Vita Collective Foundation. "Thanks to this cushion, we will also able to pass on additional interest to our insured in 2023."
The insured of the Vita Collective Foundation can already look forward to a good interest rate on their retirement assets in the current year 2022. The maximum total interest will be 2.90 percent. The Vita Collective Foundation is one of the few foundations on the market to be communicating the interest rate on retirement assets for the coming year. Determination of the interest paid on retirement assets is made in accordance with a clear regulatory mechanism: additional interest is paid from a cover ratio of 102%. The base interest rate corresponds to the statutory BVG minimum interest rate, which is currently set at 1.00 percent by the Federal Council. Consequently, in 2023, the Vita Collective Foundation will pay interest on total retirement assets as follows:
| Retirement provision affiliation annually | |||||||||||
| Interest | 2020 or earlier | 2021 | 2022 | 2023 | 2024 | ||||||
|---|---|---|---|---|---|---|---|---|---|---|---|
| 2024 | Total interest earned | 1.45% | 1.40% | 1.35% | 1.35% | 1.25% | |||||
| Base interest | 1.25% | 1.25% | 1.25% | 1.25% | 1.25% | ||||||
| Additional interest | 0.20% | 0.15% | 0.10% | 0.10% | 0.00% | ||||||
| 2023 | Total interest earned | 1.20% | 1.10% | 1.00% | 1.00% | - | |||||
| Base interest | 1.00% | 1.00% | 1.00% | 1.00% | - | ||||||
| Additional interest | 0.20% | 0.10% | 0.00% | 0.00% | - | ||||||
| 2022 | Total interest earned | 2.50%* | 1.70% | 1.00% | - | - | |||||
| Base interest | 1.00% | 1.00% | 1.00% | - | - | ||||||
| Additional interest | 1.50% | 0.70% | 0.00% | - | - | ||||||
| * Customers with contracts commencing before 01.01.2018 will receive the last interest tranche of 0.40% from the previous pension model and thus a total interest rate of 2.90%. | |||||||||||
To counteract redistribution and be able to offer all insured persons a sustainable and fair retirement provision solution, the Vita Collective Foundation is adjusting conversion rates in line with the current situation. This takes account of the changed market circumstances and higher life expectancy.
| from January 1, 2023 | from January 1, 2024 | from January 1, 2025 | |
|---|---|---|---|
| Men, age 65 | 5.70% | 5.60% | 5.50% |
| Women, age 64 | 5.70% | 5.60% | 5.50% |
These conversion rates have already been taken into account in the pension certificate for 2023. The conversion rates for the previous year apply to insured persons with a pension start date of January 1. The conversion rates will also be visible in the Pension Regulations 2023, which will be available at vita.ch/downloads from the end of 2022.
The AHV referendum was approved on September 25, 2022. The reference age – this is the new term for the ordinary retirement age – for women will be increased gradually from 64 to 65. For men, the reference age remains 65. The new legal provisions on the reference age also apply to occupational retirement provision. They are expected to come into force on January 1, 2024, and they are, therefore, not yet included in your pension certificate for 2023.