Money paid into the occupational pension fund will for the first time yield less than two per cent in interest on capital from next January.
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swissinfo.ch and agencies
The cabinet on Wednesday decided to lower the interest rate to 1.5 per cent from two per cent in line with recommendations by a government advisory board.
The move was prompted by volatile financial markets as well as falling stocks and bonds, a cabinet statement said.
Trade unions had called for a rate of up to 2.25 per cent, while the private insurance sector had come out for a reduction to just one per cent.
In March 2010, a coalition of trade unions, consumer groups and centre-left parties successfully blocked parliament plans to lower the minimum conversion rate of the occupational pension scheme.
The system was introduced on a mandatory basis for employees in 1985. It is an element of Switzerland’s three-tier pension scheme.
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Hands off pension fund, say unions
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Swiss voters will go to the polls on March 7 to accept or reject a proposal to lower the rate used to calculate payments of the occupational pension scheme. The cut of about 0.6 per cent within a six year period would mean pensioners would receive up to SFr150 ($147) less a month, said union…
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Some experts, however, put the losses at closer to SFr60 billion – or ten per cent of the total funds – in the past 12 months, which could rise even more if stock markets continue to decline. Swisscanto, one of Switzerland’s largest pension funds, presented a comprehensive report on the state of the industry at…
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But less than three weeks ahead of the vote it is not clear to what extent campaigns by supporters and opponents have had an impact on the public perception despite a flood of propaganda material. Voters will be asked to decide on the minimum conversion rate of the occupational pension scheme. The rate presently stands…
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Switzerland's older generation in its golden years. With life expectancy increasing, the time after retirement has a new importance.
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If you want to start a conversation about a topic raised in this article or want to report factual errors, email us at english@swissinfo.ch.