Low interest rates mean that expected future returns on investments will be lower. Funds are being redistributed from people in work to retirees. Pensioners enjoy guaranteed pensions and returns, while the risks are borne by active insured members. In order to improve intergenerational equity, the conversion rate will be reduced gradually as of 1 January 2023. Various mitigating measures will help to make the changes socially acceptable.
As of 1 January 2023, the conversion rate for ordinary retirement at age 65 will be reduced from the current level of 5.34% to 5.0%. The rate will be reduced on a step-by-step basis, namely in 17 monthly steps of 0.02%, meaning that the process will be ongoing until 1 May 2024. At the same time, the conversion rates for retirement prior to an individual’s 65th birthday will be reduced. The FAQ at the bottom of this page explains the most important technical terms, as well as providing other information.
You can consult the conversion rates that will apply to you at comPlan Online (comparative statement, pension statement and retirement simulation). Please note that your retirement pension amount depends not only on the conversion rate, but also on the amount of your retirement savings and the mitigating measures. As a result, instead of looking at the conversion rates, you should take a particular look at the effective retirement benefits (retirement pension/retirement capital) in CHF.
The conversion rate is being reduced gradually and various measures are being taken to mitigate the impact. This means that your retirement pension will continue to increase after 1 January 2023 for every month that you remain in work, or for every month by which you delay your retirement. During the conversion rate reduction phase, this monthly increase will be lower than it was before. However, it is not possible that you will receive a lower retirement pension from comPlan after 1 January 2023 than if you had retired earlier.
If you opt for a lump sum, your existing retirement savings will be paid out to you and the conversion rate will not be applied directly. The low interest rates and the lower expected return on investments, i.e. the factors behind the reduction in the conversion rate, will also, however, affect your private investment of the lump sum.
If your retirement pension is to remain more or less the same despite lower conversion rates, a bigger retirement savings balance will be required at the time of retirement. This is why the savings contributions are being increased. At the same time, comPlan guarantees you that, upon your ordinary retirement at the age of 65, your retirement pension based on the Standard savings option will be no more than 2% lower than it was before the reduction in the conversion rates. If the higher savings contributions are not sufficient to limit the reduction in your pension based on the Standard savings option to 2%, comPlan will credit extra contributions to your account.
Swisscom’s savings contribution for all insured persons aged 22 or over will be increased by 0.7 percentage points. At the same time, the risk contribution (for death and disability benefits), which is paid by Swisscom in full, can be reduced by 0.7 percentage points. This means that the changes will have no impact on Swisscom’s costs.
In the Standard savings option, the savings contributions for all insured persons aged 22 or over will be increased by 0.5 percentage points. In the Plus savings option, the savings contributions for the age group "22 to 39" will be increased by 0.2 percentage points. For all other employees/in the other savings options, the savings contributions will remain unchanged. This means that the following savings contribution rates will apply as of 1 January 2023:
There are statutory provisions limiting a pension fund’s maximum savings contributions. comPlan has already exhausted the potential available to it in the Extra savings option and cannot increase the savings contributions any further.
The extra contributions will be credited to your retirement account from 1 January 2023 until 31 May 2024 over and above the savings contributions and interest. As they have a direct impact on the amount of your retirement pension, they help to cushion the effects of the lower conversion rates. The extra contributions are borne by comPlan.
The amount of your extra contributions will be calculated by the pension fund expert as of 1 January 2023. The amount will be defined such that your retirement pension at age 65 based on the Standard savings option will be reduced by no more than 2%. This means that the impact of the reduction in the conversion rate on your voluntary savings contributions under the Plus and Extra savings options will not be offset. The reduction in the conversion rate will also not be offset on voluntary payments and payments made by Swisscom since 1 January 2021. If you join Swisscom on or after 1 January 2022, you will receive extra contributions for the future savings you accumulate with comPlan, but not for the savings you accumulated with your previous pension scheme that you have moved to comPlan.
No. At comPlan, the amount of the retirement-linked child’s pension is based on the compulsory portion (statutory minimum) of your retirement savings, meaning that it is not affected by the changes.
Yes, the entitlement to the bridging pension will continue to apply unchanged.
If the bridging pension financed by Swisscom is lower than the maximum AHV retirement pension, you can increase it to the maximum amount on a voluntary basis. The increase in the bridging pension will be financed by reducing your retirement capital or your life-long retirement pension. The reduction rates will be updated with effect from 1 January 2023 and apply to people retiring on or after this date.
Yes, your current pension is guaranteed and will remain unchanged. If you retire before or on 1 December 2022, you will also not be affected by the changes in the conversion rates as of 1 January 2023.
Yes, your current partial retirement pension is guaranteed and will remain unchanged. If you take full retirement after 1 December 2022, your future entitlement to the remaining retirement benefits will be subject to the same provisions that apply to other active insured members: the adjusted conversion rates, the adjusted savings contributions and the entitlement to extra contributions.
The sustained period of low interest rates means that the return on investments will be lower in the future. Funds are being redistributed from active insured members to retirees. The idea, however, is to reduce this redistribution in light of the fact that the active insured members bear the risks in the pension fund, while retirees enjoy a guaranteed return. This is why the return guarantee contained in the conversion rate and, as a result, the conversion rate itself is being reduced. This will allow comPlan to improve intergenerational equity.
If a person retires today, the guaranteed life-long retirement pension features a fixed interest rate of approx. 2.7% a year (via the conversion rate). By contrast, the average interest rate on the retirement savings of active insured members has been half this amount over the last 5 years (1.35% a year). The reduction in the conversion rates reduces the interest rate included in new retirement pensions to approx. 2%. This will give younger people, in particular, the chance to generate a higher return on their pension fund savings, too.
Interest rates have fallen considerably over the last 20 years. The investment returns seen in recent years, some of which have been very attractive, are no indication of the return prospects going forward. The fact that interest rates are at an all-time low will have a negative impact on future investment returns. This will affect not only fixed-income investments, but also real estate and, to some extent, shares.
No. The changes being made effective as of 1 January 2023 are designed to reduce redistribution from younger to older insured persons and to improve intergenerational equity. comPlan’s coverage ratio is not a decisive factor.
Current pensions are guaranteed and reductions are prohibited by law.
Yes. In the event that someone already drawing a pension dies, the pension payable to his/her surviving spouse/partner will, with effect from 1 January 2023, correspond to 60% of the last retirement/disability pension drawn across the board (to date, the surviving spouse’s/partner’s pension amounted to 60% or 70% depending on the time at which the retirement/disability pension was first payable). In addition, the calculation of the retirement pension that recipients of comPlan disability pensions receive as of the time at which they turn 65 will be revised and made fairer. Both changes will help to ensure that the conversion rate does not have to be reduced to below 5.0%.
The 0.7 percentage points that Swisscom will save on risk contributions will be returned to the insured persons in full via the 0.7 percentage point increase in the employer’s savings contributions. Swisscom will also continue to pay a conversion loss contribution corresponding to 1.2% of the total wage bill. Without this conversion loss contribution, the conversion rate would have to be reduced to well below 5.0%.
We have put together an overview of your personal contributions and benefits before and after 1 January 2023. To access it, log into comPlan Online and click on “Comparative statement for 2022/2023”. This comparative statement is merely a snapshot. From now on, all comPlan calculations will take the changes that will apply from 1 January 2023 into account.
Terminate your contract of employment with effect from 30 November 2022 at the latest. Make sure you adhere to your contractual notice period.
Thanks to the various mitigating measures, the retirement benefit (retirement pension or retirement capital) you receive as of 1 January 2023 will not be any lower than if you had retired earlier. So before you terminate your contract, you should check whether early retirement makes sense for you. You can compare the amount of retirement benefits you will receive on various retirement dates at comPlan Online (comparative statement for 2022/2023, pension statement and retirement simulation).
You can increase your savings option to Plus or Extra with effect from 1 January. Alternatively, you have the option of increasing your retirement benefits by making voluntary buy-ins. You can find more information on buy-ins here.
The maximum potential buy-in amount depends on various factors and is always merely a snapshot. As of 1 January 2023, the buy-in tables for all savings options will be adjusted. This may increase your potential buy-in amount.
You can change your savings option between 1 May and 31 December for the following calendar year at comPlan Online. This means that you can currently change the savings option with effect from 1 January 2022. Changes effective 1 January 2023 can be made as of 1 May 2022.
Do you still have questions after reading the information and watching the explanatory video on the reduction in the conversion rate?
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