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