The conditions on the financial markets and the needs of our customers are constantly changing. "A sustainable participation model adapts to such changes. We focus on needs, ensure the financial stability of the Foundation and thereby the retirement provision for all generations,"explains Werner Wüthrich, Managing Director of the Vita Collective Foundation.
Focus on safety remains and is even strengthened: The Foundation Board of the Vita Collective Foundation decided to increase the target value fluctuation reserve from 12 percent to 14 percent of the obligations. Focus on safety remains and is even strengthened: The Foundation Board of the Vita Collective Foundation decided to increase the target value fluctuation reserve from 12 percent to 14 percent of the obligations.
From 2024 – for the definition of the 2025 interest rate – additional interest will be paid from a coverage ratio of 103 percent instead of 102 percent as before. Up to a coverage ratio of 103 percent, the entire retirement assets earn interest at the statutory BVG minimum interest rate stipulated by the Federal Council. The additional interest is still based on the level of the Foundation's cover ratio at the end of November of each year and is determined in advance for the following year.
All affiliations will now receive the full additional interest in their second affiliation year in accordance with the interest table. In the year of affiliation, the entire retirement assets – provided a coverage ratio of over 100 percent – earn interest at the statutory BVG minimum interest rate.
Among other things, these adjustments will make the retirement provision model easier to understand and more comparable on the market. The core idea of attractive participation remains intact – the insured benefit directly and evenly from the investment income.
