Whether it's your first job or a new job: When you become an employee, your employer must insure you in a pension fund starting from a specific annual salary. With every new job, you also move to a new pension fund. Your credit balance is transferred to the new occupational benefits institution. The framework for Pillar 2 is regulated by law.
Occupational benefits insurance forms Pillar 2 of Switzerland’s three-pillar system. It pays benefits from the date of retirement and in the case of occupational disability or death. The contributions are split between the employee and the employer.
Here you will find the current amounts that are redefined every two years:
Age woman / man Percentage
25 – 34 7%
35 – 44 10%
45 – 54 15%
55 – 64 18%
In case of death for the surviving dependants
Benefits on retirement
Retirement, survivors', and disability benefits are generally paid as a pension. You can also draw at least 25% of your Pillar 2 credit balance (mandatory benefits) as a lump sum.
Every year you receive a pension fund certificate. This personal certificate contains all the key information pertaining to your occupational benefits insurance:
Each pension fund has its own regulations. Its provisions define the level of benefits, their financing, and the possibilities the insured have in respect of retirement, purchases and residential property. You can request these regulations from your employer or HR department at any time.
You need not take any action to enroll in the first pension fund of your working life. Your employer does this. When you change jobs, get divorced, or leave your pension fund, you should know the following.
Here you will find the current amounts that are redefined every two years:
When you become self-employed, you have three alternative ways of using your vested benefits:
Anyone who works for a company whose pension fund is managed by AXA can benefit from many advantages. Because the insured employees have access to the myAXA pensions portal. Thanks to this online portal, you - as an employee - can take the planning of your pension provision and the calculation of possible future scenarios into your own hands. Otherwise you have to ask your employer or your HR department for the relevant information.
From the end of 2017 or at the latest at the start of 2018, the insured in an AXA pension fund will benefit from the advantages of the new pensions portal on myAXA. You will receive a letter from AXA with the access data that allows you to register with myAXA with just a few clicks.
Whenever you change employer, the assets from your current pension fund must be transferred to the new occupational benefits institution. You can ask your new employer for a payment slip from its pension fund or for the exact payment instructions, which you then forward to your previous pension fund, if possible still before you withdraw.
You will have to deposit your assets with a vested benefits institution. This leaves you with two options:
For this you will receive a form for entering the necessary account or policy information, which you then send to your former pension fund – if possible still before you leave. The pension fund then transfers your assets to the address as indicated.
Possible causes for a difference in the amount from one year to the next include a change in your salary or working hours, or a change in the interest or conversion rate.
The amounts shown are illustrations. They are calculated using a provisional interest rate for the whole calculation period (01.01.20XX until retirement age). As a rule, the assumed interest rate used in the calculation is disclosed publicly.
No they are not. The pension fund recalculates the projected pension benefits annually based on the information available at the time, including the
The actual benefits are calculated based on the regulatory provisions that apply on the precise date on which the benefits case (retirement, disability, or death) occurs.
You can have the assets paid out as a lump sum up to one year from the date when you became self-employed.
Yes, that is possible. However, you may transfer your vested benefits to a maximum of two vested benefits institutions.
No, that is basically not possible. The former pension fund must transfer the entire vested benefits to the new pension fund.
Exception: If you are unable to transfer all of your vested benefits to the new pension fund, you may transfer the unused portion to a vested benefits account or policy.
If you will continue to be mandatorily insured for old age, disability and death in that country, you can have only the extra-mandatory portion of your benefits paid out. The statutory minimum portion must remain in Switzerland and can be used only once you reach retirement age, or in the event of disability or death.
Having assets from the mandatory portion paid out is only possible in the following cases:
This is not an option if the EU or EFTA country requires you to have occupational benefits insurance. However, if you are not subject to mandatory benefits insurance, you can have the assets paid out as a lump sum.
If you are a member of a pension fund, you are required, by law, to transfer all your vested benefits to your account with that fund. Doing so can increase your pension benefits. If you want to liquidate your accounts or surrender your policies and transfer the amounts to your pension fund, you will need to submit a written request plus a payment slip from your pension fund to the occupational benefits institution. The earliest you can have your vested benefits balance paid out is five years before you reach ordinary retirement age and the latest is five years thereafter.
Yes, that's possible.
No. The death lump sum is not part of the estate. It is reserved exclusively for the beneficiaries as defined in the regulations. Entitlement to the death lump sum continues even if the beneficiary relinquishes the estate.
The law and your pension fund regulations define who is entitled to benefits in the event of death. Benefits are paid as a pension and/or a lump sum, primarily to the surviving spouse, life partner or children, depending on the regulations.
In the absence of a spouse, life partner or children, the statutory order of beneficiaries lists other persons in the following order:
The pension fund can include further provisions in its regulations for cases that do not fall under the statutory order of beneficiaries. We recommend that you inform yourself about what provisions apply to your situation.
In the event of an insured person's death, the law and the pension fund's provisions may provide the following benefits:
The actual amount in benefits and the terms for entitlement vary from one pension fund to another. We recommend that you refer to your personal certificate (also referred to as a pension certificate or pension fund certificate), read your pension fund regulations carefully, or ask your advisor.
If you live in a life partnership (are not married or in a registered partnership), you will need to find out if a surviving partner's pension is even covered. If this is not the case or if the coverage is inadequate, we recommend that you provide for your partner by purchasing a private whole life policy.
Your pension fund will pay you a disability pension. The amount is defined in the pension fund regulations.
If your children are eligible for support, you are entitled by law (BVG) to a disabled person's child's pension of 20% of your disability pension. Eligibility applies to children