SWITZERLAND - The Swiss lower chamber is expected to endorse on Monday a proposal to allow pensionskassen in financial trouble to lower the minimum interest rate by a maximum of 0.5% below the fixed 2.25%.
The body deliberating when the lower and upper chambers has approved the motion by 14 votes in favour and 11 against.
The lower house so far has rejected proposals to allow pension funds in need the right to further lower the minimum interest rate as part of redevelopment measures.
The motion is believed to have convinced the lower chamber. The permission to change the minimum interest rate, however, would only be valid for a maximum of five years.
The upper chamber has already accepted the new motion and modified its resolution.
If the lower chamber fails to give its go-ahead to the motion, the whole set of laws on redevelopment measures could fall through.
The upper chamber’s Pascal Couchepin said: “Politics is not the art of perfection, it is the art of the possible and the Conférence de conciliation has showed what is possible.”
“We rally to the solution you have devised. It is not perfect in our eyes, but it is better than nothing and that’s why we sustain it.”