360° Benefits I News
The vote on the BVG reform took place on 22 September 2024 and the BVG reform was rejected. Nonetheless, the vote and the discussions on this topic will have an impact to be considered by the Board of Trustees.
The proposed changes and discussions brought up by the BVG reform, such as the reduction of the conversion rate and the adaptation of the coordination deduction, have already been implemented by most of the enveloping pension funds:
On the other hand, the retirement credit scale with only two rates is not commonplace in pension plans today. The scale with four retirement credit rates depending on age remains the most common in Switzerland. Many pension funds foresee other retirement credit rates than the BVG minimal credit rates. The total savings scale design could be assessed together with other plan factors, considering the total level of benefits.
The BVG reform aimed to strengthen the financing of the 2nd pillar, maintaining the overall level of benefits and improving the protection of people with low income and part-time employees. It can be assumed that the discussion on these measures in the BVG will continue and is not off the table due to of the rejection of the vote. Even before a new reform will be discussed by the legislator, pension funds should therefore assess these important factors on a regular basis.
