The Vita Collective Foundation can look back on a pleasing investment year: it generated a positive return across the entire investment portfolio in recent months. Among the traditional asset classes, equities once again led the way. The current performance data can be obtained from vita.ch.
Indicative cover ratio of 114 percent as at the end of November 2021
The pleasing performance development was reflected in the cover ratio. As of the effective date at the end of November 2021, this had reached an indicative value 114 percent. This means that the cover ratio of 102 percent, which is a prerequisite for the distribution of an additional interest payment, was clearly exceeded. «We’re delighted that we can offer our insured a modern retirement provision model with a fair interest rate, » says Werner Wüthrich, Managing Director of the Vita Collective Foundation. «Our goal is to use a variety of measures to ensure more balanced retirement provision with less redistribution».
Interest earned on retirement assets 2022
The Vita Collective Foundation is one of the few foundations on the market to already communicate the interest rate on retirement assets for 2022 in the preceding year. Interest is paid on retirement assets in accordance with a transparent regulatory mechanism. The base interest rate corresponds to the statutory BVG minimum interest rate, which is currently set at 1.00 percent by the Federal Council. In 2022, the Vita Collective Foundation will pay interest on retirement assets as follows:
Customers with contracts beginning in 2020 or earlier
will receive the maximum additional interest rate of 1.50 percent. Hence the total interest on their retirement assets of 2.50 percent is made up as follows:
- 1.00% base interest rate
- 1.50% additional interest
Customers with contracts that began before January 1, 2018 will also receive the final interest tranche of 0.40 percent from the previous retirement provision model, giving them a total interest rate of 2.90 percent on their total retirement assets.
Customers with contracts starting in 2021
will receive a total interest rate on their retirement assets of 1.70 percent.
This final statement is as follows:
- 1.00% base interest rate
- 0.70% additional interest
New customers with contracts set to begin in 2022
will receive a basic interest rate on the entire retirement assets that corresponds to the statutory minimum interest rate of 1.00 percent.
Vita Classic conversion rate
Another measure on the journey toward more balanced retirement provision with less redistribution is the adjustment of the encompassing conversion rate. This will take account of the changed market circumstances and higher life expectancy. As of January 1, 2024, the conversion rate will be set at 5.6 percent. At the final age (65 for men and 64 for women) the conversion rate will thus be:
|from January 1, 2022||5.80%|
|from January 1, 2023||5.70%|
|from January 1, 2024||5.60%|
The conversion rates for the previous year apply to insured persons with a pension start date of January 1.