In order to make adjustments to match the current interest rate, VFF Pension has decided to lower the forecast interest rate for PLUSpension to the same level as our other insurances from 1 January 2021. The forecast interest rate is the interest rate used to calculate future non-guaranteed bonuses.
For PLUSpension, the forecast interest rate is lowered from 2.5% to 2%. After the adjustment, we have the same forecast interest rate for all our insurances, Volvo Företagspension, Avtalspension SAFLO, Alternative ITP-T10 and PLUSpension.
The forecast interest rate reduction does not affect the size of your guaranteed monthly pension. However, the calculated monthly bonus will be smaller as a result of the lower forecast for future bonuses. As all insurances are listed with an actual refund at the end of each year, the total paid pension during the payment period will not be reduced, the entire insurance capital will be paid out from your insurance.
Your insurance capital is not affected by the forecast interest rate. Your insurance capital grows every day as per the applicable bonus rate, currently 3 % for Volvo Företagspension and 5 % for PLUSpension, SAFLO and T10.