The Swiss federal commission for occupational pension, BVK-Kommission, has advised the Federal Council to keep the minimum interest rate on occupational pension savings unchanged at 1.25% for 2026.
The commission weighed the option of raising or cutting the rate but opted for stability, citing strong financial market performance in 2024 and continuing resilience this year despite turbulence.
Members took into account pension funds’ financial position, performance and expected returns, as well as wage developments, inflation and interest rate policy.
In the first half of 2025, the funding ratios of Swiss pension schemes declined, according to Swisscanto, but their overall financial situation remains sound.
Asset-weighted average returns were marginally positive at 0.1%. The commission nevertheless stressed that the “current situation is fraught with uncertainty”.
The decision has divided social partners. The Swiss Federation of Trade Unions (SGB USS) accused the commission of “misunderstanding” the purpose of the minimum interest rate.
“The minimum interest rate is far too low to fulfil its function. This leads to the fact that the statutory protection of members is becoming increasingly less important. This particularly affects employees in pension funds with lower incomes,” it said.
The union pointed out that the minimum interest rate, which in 2025 applies to insured salaries between CHF22,680 and CHF90,720 per year, is intended to ensure that returns earned by pension funds are passed on to members.
“However, this has not been the case for years. In addition to maintaining a certain level of pensions, maintaining and accumulating retirement capital is also crucial to avoid further destabilising confidence in the second pillar,” the SGB USS added.
By contrast, the Swiss Employers’ Association (Schweizerische Arbeitgeberverband) welcomed the recommendation.
“Given the current interest rate policy, low returns on capital markets, and uncertainties regarding investments, the Employers’ Association would also have considered a slight reduction of the minimum interest rate,” it said in a statement.
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