Pension fund association ASIP has urged the government to lower the guaranteed return on pension contributions, insisting that the move is critical to improving the financial health of its members. Earlier this year, the Swiss government decided to leave the rate in question at 2.5%.
“An adjustment to the rate is not appropriate right now, since although financial markets have performed well, the consequences of bearish markets are still being felt,” the government said.
Buoyed by positive equity markets, Swiss pension funds achieved a 6.2% return in the first half of 2005 – their best return since 2003.
Even so, ASIP said the government should reduce the guaranteed return to 2%.