In 2019, 686 employees of our corporate Group who work in Liechtenstein were covered by the retirement, life and disability insurance plans of the autonomous Personnel Pension Fund Foundation of Liechtensteinische Landesbank. The pension fund and its defined contribution scheme offer three attractive savings plans that go beyond the requirements of the law (Occupational Pension Act (OPA)). In addition, LLB’s contributions as an employer amount to two-thirds of the financing of the fund. As at the end of December 2019, the liquidity ratio of the LLB pension fund stood at 108.1 per cent (as at the end of December 2018: 106.4 %) and had thus increased by 1.7 percentage points on the previous year. Without the reduction of the technical interest rate from 2 per cent to 1.5 per cent, the liquidity ratio would have been 2.6 percentage points higher. The return on investment was 8.19 per cent (2018: - 4.16 %). The retirement assets of the active insured persons bore interest of 5 per cent as at 31 December 2019. The fluctuation reserve amounted to CHF 25.4 million (2018: CHF 18.3 million). The pension fund capital totalled CHF 316.0 million (2018: CHF 287.9 million).
From 1 January 2018 onwards, the pension conversion rate at the retirement age of 64 is being gradually reduced by 0.1 per cent per year to 5.1 per cent. The pension conversion rate was 5.40 per cent in 2019. From 1 January 2023, the normal retirement age for drawing the Liechtenstein AHV (state pension) will be raised to 65 and the conversion rate to 5.22 per cent.