News from the Board of Trustees, 10 November 2023
- 24.11.2023
General Electric Switzerland Pension Fund (PF) / Supplementary Insurance Plan (SIP): News from the Board of Trustees, 10 November 2023
Current performance
In October, the PF generated a return on investments of -1.22%. The accumulated result from January to October 2023 thus amounts to 2.41%.
Threshold amounts 2024
The threshold amounts will not change as of 1 January 2024. The factsheet with the 2024 figures will be available on our website in early January 2024.
2024 interest rates / pension adjustments
For the year 2024, the Federal Council has raised the BVG minimum interest rate on 2nd pillar savings capital to 1.25% (previous year 1.00%). The Board of Trustees has also decided on a 1.25% interest rate on savings capital in the PF for 2024. The PF’s projected interest rate will likewise be increased to 1.25%.
Pensions will not be raised as of 1 January 2024.
Changes regarding the choice of the prospective spouse’s pension
The Board of Trustees has approved the following change to the choice of the prospective spouse’s pension: At the time of retirement, members have the option of choosing the prospective spouse’s pension in accordance with the following table:
Personal conversion rate (irrespective of gender) according to chosen entitlement
| Entitlement | CR at age 65 |
|---|---|
| 40% | 5.00% |
| 50% | 4.90% |
| 60% | 4.80% |
| 70% | 4.71% |
| 80% | 4.62% |
| 90% | 4.53% |
| 100% | 4.45% |
Hence, instead of any level of entitlement, members must now choose among the levels listed. This method replaces the previous individual calculation of the conversion rate in the event of a change of the entitlement. The new method will enter into force on 1 January 2024. The Benefit Rules will be available on the website in early January 2024.
SIP: Repositioning of mixed assets from Portfolio 10 to Portfolio 15
The Swisscanto investment foundations have decided to raise their strategic equities exposure in the respective portfolio from 10% to 15%. This decision was made on the basis of a comparison with the peer group, which holds an average of 15% equities, and on the expectation of a higher level of structural inflation over the next 10 years. The increase serves to raise the portfolio return and bring the portfolio more closely in line with market developments. As a result, the Swisscanto AST Avant BVG Responsible Portfolio 10 investment strategy has become the Responsible Portfolio 15 strategy with effect from 20 November 2023. If you are invested in this strategy and do not agree with the change in the equities exposure, you have the option of switching to one of the other strategies.
The next meetings of the Board of Trustees will take place on 11 April 2024.