NewsInterest rate of 2.25% for 2019
Interest rate of 2.25% for 2019
The Board of Trustees has set the interest rate for the pension capital savings and retirement capital savings pension pots at 2.25% for 2019. At the same time, it has approved a prospective interest rate of 1% for 2020. The prospective interest rate determines the intrayear interest paid on retirement savings capital.
The capital market environment in 2019 has been characterized by share prices rising and interest rates continuing to fall. The investment performance of 10.4% at the end of November 2019 stands in contrast to a performance utilization of just under 8% for the reduced valuation rate of pension obligations and the revaluation of retirement losses. The coverage ratio is currently around 115% in comparison to 112% at the end of 2018.
The Board of Trustees’ primary goal is to maintain the financial stability of the Pension Fund sustainably and in the long term. Particular attention is being paid to achieving the target fluctuation reserve, the value of which is reached at a coverage ratio of 116%.
Regulations for 2020
The regulations valid for 2020 are published in the “Download” section of the Pension Fund website.