Reduction of conversion rates

The new pension conversion rates for ordinary retirements at age 64 (women) and 65 (men) are


2019 mandatory 6.80% / extra-mandatory 6.20%

2020 mandatory 6.80% / extra-mandatory 6.00%

2021 mandatory 6.40% / extra-mandatory 5.80%

2022 mandatory 6.00% / extra-mandatory 5.60%

2023 mandatory 5.60% / extra-mandatory 5.60%

2024 mandatory 5.40% / extra-mandatory 5.40%

2025 mandatory 5.20% / extra-mandatory 5.20%


In the case of early retirement from 1.1.2020, the new pension conversion rates affect the retirement benefits.


Why can ALSA PK reduce the conversion rate on the mandatory retirement capital?

The conversion rate in accordance with the BVG Act is used to calculate the mandatory minimum benefits. A comparative calculation (shadow calculation) is always made to determine the retirement pension to be paid out at the time of retirement: Retirement pension according to regulatory conversion rates compared to retirement pension calculated according to LOB minimum regulations (LOB mandatory capital at age 64/65 multiplied by 6.80%). The higher pension is paid.


Example of ordinary retirement in 2022





Comparison calculation
according to BVG-obligation

Conversion rate 6.00% 5.60% 6.80%
Capital CHF 268’000 28’000 296’000 268’000
retirement pension CHF 16’080 1’568



The old-age pension according to the BVG mandatory is CHF 18,224. The regulatory old-age pension is only CHF 17,648. The ALSA PK must transfer the higher value as a pension: In this example, the annual old-age pension is CHF 18,224, which means that the legally required minimum benefits are met.