Interest-free investment of vested benefits assets should remain possible

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In a low-interest-rate environment, the Substitute Occupational Benefit Institution BVG should continue to be able to invest vested benefits assets interest-free with the Federal Treasury. At its meeting of 2 September 2026, the Federal Council took note of the results of the consultation on the amendment to the Federal Act on Occupational Old Age, Survivors’ and Invalidity Pension Provision (BVG) and adopted the dispatch for submission to Parliament.

As early as September 2020, Parliament granted the Substitute Occupational Benefit Institution BVG, for a limited period, the right to invest funds with the Confederation under certain conditions in a negative-interest-rate environment. This arrangement was extended once and expires in September 2027. As interest rates are again low and in some cases already negative, the Substitute Occupational Benefit Institution should again be given the option, where the Swiss National Bank SNB policy rate is 0 percent or lower, to invest a maximum of CHF 10 billion with the Confederation interest-free. It may make use of this option only if its funding ratio falls below 103 percent. The corresponding legislative amendment should be limited to 6 years.

During the consultation, support for the proposal was clear; 36 of 38 submissions supported it as a whole. At its meeting of 2 September 2026, the Federal Council took note of the results of the consultation and adopted the dispatch for submission to Parliament.

Interest-free investment of vested benefits assets should remain possible

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