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VFF Pension alters the forecast interest rate

In order to make adjustments to match the current interest rate, VFF Pension has decided to cut the forecast interest rate as of January 1, 2020. The forecast interest rate is the interest that is used to calculate future non-guaranteed bonuses.

For Volvo Företagspension, Avtalspension SAFLO and Alternativ ITP T10, the forecast interest rate drops from 2.5% to 2%. For PLUSpension the forecast interest rate is cut from 3% to 2.5%. The higher forecast interest for PLUSpension stems from the fact that it has a higher surplus.

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.

Your insurance capital is not affected by the forecast interest rate. Your insurance capital grows every day as per the applicable bonus rate, currently 6 % for Volvo Företagspension and 9 % for PLUSpension, SAFLO and T10.

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