Higher interest than the bank

Interest

Your savings with BVK accrue interest, and you benefit from higher interest rates than those offered by the banks.

Equal treatment of the generations

The interest rate is determined based on the coverage ratio reported at the end of the year.

If it is between 90% and 100%, the BVG minimum interest rate (2022: 1%) applies. The technical interest rate of 2% percent applies for a coverage ratio of between 100% and 115%. If the coverage ratio is below 90%, the savings no longer earn interest and the employer has to pay restructuring contributions.

If the coverage ratio of BVK rises above 115%, improvements in benefits are granted for employees and pension recipients. The pensions that were calculated with a lower interest rate or conversion rate are taken into consideration first. The savings of employees will earn higher interest.  

With this cohort model, which is based on the age group and the actual retirement date, BVK creates fair conditions between employees and pension recipients.